A senior school employee and his associate have been arrested and accused of stealing $1.4 million from the education department. or signup to continue reading Police received a tip-off in April from the NSW Department of Education, which was concerned a school employee was mismanaging funds intended for maintenance at two southwest Sydney schools.

A strike force was established and two men, aged 37 and 38, were arrested on Wednesday. Investigators allege one of the co-conspirators worked within the school and the other was the director of a building company. Homes and businesses in Yagoona, Revesby and Georges Hall were searched and police found electronics, $42,400 cash, a ballistics vest, and luxury watches.

The men have each been charged with more than 60 fraud-related offences. Detective Superintendent Gordon Arbinja said the pair allegedly defrauded the department of more than $1 million between August 2022 and November 2024. "The senior employee had financial delegation up to $150,000 so police will allege that he abused that financial delegation and that position of financial trust," he told reporters on Wednesday.

"Invoices were sometimes paid prior to the works, and some invoices were submitted and no works were ever done ...

if works were done, they were usually at a highly inflated price." Det Supt Arbinja said the pair also split invoices so they were under the $150,000 threshold. Police are attempting to recover lost funds from the 86 fraudulent invoices alleged.