MELBOURNE, Dec 17 - The Independent Broad-based Anti-corruption Commission (IBAC) is investigating past and present senior Department of Education bureaucrats and the botched Ultranet schools computer project, which was scrapped in 2013.
The hearing will examine relationships between mostly former staff and companies awarded contracts to deliver Ultranet - and whether they received holidays and gifts during the tender process.
Senior education department officials also allegedly bought shares and took jobs with the company that was given a $60 million contract for the project.
Two of the department's then regional directors, Wayne Craig and Ron Lake, purchased 11,289 and 1112 CSG shares respectively after it was awarded the Ultranet contract.
The scheme, initiated under the Brumby Labor Government, was scrapped by the Napthine Coalition Government in 2013 when costs blew out from $60 million to $180 million.
The Department of Education referred its concerns about Ultranet to IBAC and will co-operate with the investigation, a spokesman said.
"We welcome this inquiry by IBAC which has the powers and authority to fully investigate this matter and will work closely with IBAC every step of the way," he said.
"What we learn from this inquiry will build on our progress since Operation Ord to bring real and lasting change to the department."
A spokesman for Education Minister James Merlino also welcomed the probe.
"Corruption has no place in our education system and Victorian families have every right to demand answers," he said.
Opposition Education Spokesman Nick Wakeling said Ultranet was another Labor failure.
"Daniel Andrews sat around the Cabinet table as Ultranet, myki and the desal projects collapsed around him so the public deserve answers around the repeated failings under Labor's watch."