A retired senior naval officer is facing a secret military disciplinary process over unspecified allegations involving lucrative defence contracts in Western Australia.

The inquiry, which involves a court martial on eight charges, has prompted significant legal and logistical efforts, including the involvement of former Defence Department Secretary Greg Moriarty as a witness from Washington.

The case, which will be heard by Major General Michael Cowen KC, examines potential conflicts of interest between Defence officials and military contractors, particularly those linked to the Henderson shipyard.

Sources indicate the allegations date back to the previous Coalition government, raising questions about why a military process is being used instead of a civilian court.The Defence Department has declined to comment, citing privacy obligations.

This follows a recent Australian National Audit Office report highlighting failures in documenting bribery allegations against navy contractors, including a case where a senior official took a job with a winning bidder during a $700 million contract process.

The inquiry also connects to past scandals like the 'Fat Leonard' bribery case, underscoring ongoing concerns about corruption in defence procurement.