Council launches review after $2.4M contract awarded to former staff member’s firm
By Deanne Jeffers
GREATER Shepparton City Council has launched an independent legal review into the procurement process that has seen a multi-million-dollar engineering contract awarded to a newly formed company run by a former Council employee; a contract believed to be worth more than $2.4M.
Pamecs Pty Ltd, registered just days after its director, Mayanak Gupta, reportedly resigned from Council, was awarded the contract for engineering and associated services at an Additional Council Meeting on October 7.
Business records show Pamecs was registered on August 5, only days before the contract tender opened. Mr Gupta had been employed as a team leader in Council’s engineering services department until August 1, just four days before Pamecs was incorporated.
Mr Gupta, aged in his late 20s, is understood to have previously worked with the Department of Transport and VicRoads before joining Council in February 2024. Pamecs’ website lists its office as the Greater Shepparton Business Centre on Old Dookie Road. Under ‘Projects’ on Pamecs’ website, it simply says, “Coming soon.”
Councillors voted to award the contract at the October 7 meeting, with this portion of the meeting closed to the public.
It is understood that councillors were not advised that the successful tenderer was a former employee or that the company had limited trading history at the time of the decision.
Under Council’s current tender policy, councillors are presented with de-identified bids, identified only by letters rather than business name, and are advised by senior staff recommendations. The Adviser understands that around six businesses tendered for the contract, including Pamecs Ltd Pty.
Several councillors are understood to be unhappy with the process and were among those who called for the review.
Council confirmed last week it had engaged an independent legal advisor to review the procurement process but declined to answer questions from The Adviser, saying it could not provide further comment until the review is complete.
The Adviser is not alleging any wrongdoing by Mr Gupta.
Mayor Cr Shane Sali said councillors had requested the review to ensure transparency.
“Councillors are responsible for oversight of policy and compliance. In line with this responsibility, we have requested a formal review,” Cr Sali said.
Council CEO Fiona Le Gassick said, “We welcome the line of inquiry by councillors and are actively working with the legal firm to finalise the review within the next two weeks. Council will respond immediately should any recommendations be identified via the review.”
Multiple sources have told The Adviser that much of Council’s in-house engineering capacity has been scaled back or outsourced to external contractors in recent months. In July 2025, a departmental restructure reportedly resulted in staff redundancies.
Council’s adopted Procurement Policy states that in accordance with the Local Government Act, all members of staff have an overriding responsibility to act impartially and with integrity, avoiding conflicts of interest. This means that staff employed by Council must disclose general or material conflicts of interest.
Council has been asked to confirm whether any staff involved in the procurement process made conflict-of-interest declarations and whether the findings of the independent review will be made public.
Several Victorian councils have faced similar scrutiny in recent years over procurement practices involving former staff and newly established contractors. Governance experts have warned that outsourcing core council functions can reduce accountability and increase the risk of perceived or actual conflicts of interest.
The Adviser has sought further comment from Greater Shepparton City Council regarding the contract value, the engineering department restructure, and details of the review currently underway. It is understood that the reported $2.4M contract value is for a period of five years.
