An employee of the government, along with his spouse and executives from a construction firm, have been formally charged with fraud and corruption in relation to a multi-million-dollar government contract.

The group, based in the Northern Territory, faces accusations from the Australian Federal Police (AFP) of conspiring to manipulate the tendering process to secure contracts for their company from the Department of Defence, with a total value nearing $71 million.

Allegations suggest that the government employee misused his position to steer building contracts toward the construction company and its subsidiary, which are owned by the co-conspirators.

On Friday, the AFP, in collaboration with the Department of Defence and the National Anti-Corruption Commission (NACC), carried out several search operations at business and residential locations throughout the greater Darwin area.

During these searches, authorities confiscated mobile phones, laptops, a firearm, jewelry, $30,000 in cash, and a small amount of a substance believed to be cocaine.

All three face multiple charges which carry up to 10 years in jail.

They include dishonestly gaining a benefit from a Commonwealth entity, namely the Department of Defence.

The Commonwealth employee was also charged with abuse of public office.

AFP Superintendent Greg Davis said abuse of public office or corruption was “not only criminal but also a serious breach of public trust”.

“Defrauding the Commonwealth is a crime that prevents public funds from being used to support the wider Australian community, and we will not hesitate to investigate suspected criminal activity to bring offenders to justice,” Supt Davis said.