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AAP
AAP
Lloyd Jones

Trio get bail over alleged $71m Defence contract fraud

Bail has been granted to three people arrested and charged with fraud related to Defence contracts. (HANDOUT/AUSTRALIAN FEDERAL POLICE)

T Three people accused of fraud and corruption involving more than $70 million in Defence building contracts have been granted bail on strict conditions.

Michael Buckley and couple Dallas and Natalie Wynne appeared in Darwin Local Court on Monday after spending the weekend behind bars following their arrests on Friday.

It follows a joint agency investigation after the Department of Defence reported irregularities in the awarding of contracts worth almost $71 million to Northern Territory business M + J Building and a subsidiary.

The AFP alleges Dallas Wynne, a Commonwealth Defence employee, his wife and Buckley - the director of M + J Building - conspired to influence the awarding of tenders to the companies to dishonestly gain a benefit from Defence.

The Crown did not oppose bail on Monday and Judge Jonathan Bortoli granted it on strict conditions, saying the allegations were very serious.

"There are always risks, in particular flight risks ... when there are large sums of money allegedly obtained through deception," he said.

The trio appeared separately, with their next court date set for February 17.

The court heard they were likely headed for a Supreme Court trial.

Their bail conditions require the trio to surrender their passports, not leave the NT without permission and report to police once a week.

They can only have one mobile phone and not use encryption devices.

Arrest
Three people have been charged with dishonestly gaining a benefit from a commonwealth entity. (HANDOUT/AUSTRALIAN FEDERAL POLICE)

After signing their bail papers the trio were rushed past media to waiting cars outside the court, surrounded by family and supporters.

All three were charged with dishonestly gaining a benefit from a commonwealth entity namely the Department of Defence, an offence that carries a maximum penalty of 10 years in jail.

Dallas Wynne was further charged with one count of abuse of public office, an offence that carries a maximum jail term of five years.

Investigations are continuing after phones, laptops and cash were seized following property raids and Friday's arrests.

Arrest
The trio were told they were likely headed to the Supreme Court on the charges. (HANDOUT/AUSTRALIAN FEDERAL POLICE)

Abuse of public office or corruption was a serious breach of public trust, Australian Federal Police said.

"Defrauding the Commonwealth is a crime that prevents public funds from being used to support the wider Australian community," AFP Superintendent Greg Davis said in a statement.

"We will not hesitate to investigate suspected criminal activity to bring offenders to justice."

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