A parliamentary probe into how consulting firm Synergy 360 won deals with Services Australia and the National Disability Insurance Agency and potential links to former minister for government services Stuart Robert has handed its investigation to the National Anti-Corruption Commission (NACC).
In a substantial escalation of the hunt for possible procurement rorts, the Joint Committee of Public Accounts and Audit (JCPAA), chaired by Labor MP Julian Hill, revealed its interim report released Wednesday had recommended the NACC take over because the JCPAA had been presented with both serious allegations and conflicting evidence.
(There is no connection between Synergy 360 and Synergy Group.)
“A referral to the NACC should never be made lightly and is not done so here. There appears to be no other appropriate course of action however in light of the serious and systemic nature of the allegations raised,” Hill said.
“The committee has established a number of matters but is unable, given its resources, lack of forensic accounting expertise, and the refusal so far of key witnesses to provide documents or fully answer questions, to make clear findings as to the truth. An agency with compulsory questioning, document gathering, and investigatory powers may be able to properly assess these matters.
A statement from the JCPAA said that “concerning reports were received of alleged financial impropriety, improper relationships and undisclosed conflicts of interest with parties receiving contracts from the Commonwealth”, but that these were contested.
“Rebutting these allegations, Mr Robert, his longtime friend, business partner and political fundraiser Mr John Margerison, Synergy 360 principal Mr David Milo and others strongly deny improper conduct, hence the evidence before the inquiry is directly conflicting,” the JCPAA said.
The statement from the JCPAA said the committee had also recommended that “the Speaker authorise the commissioning of legal advice regarding the nature of the Committee’s statutory powers under sections 13-15 of its legislation, including situations where a person claims to be resident overseas”.
The interim report itself is withering, especially around the key issue of IT procurement deals at Services Australia which recently junked and wrote off a $200 million key software project that was supposed to have vendor Infosys build a new welfare benefits entitlement calculation engine.
“Previously undisclosed meetings were revealed between former minister Stuart Robert, Synergy 360 and Infosys including during a tender process and when Infosys was being performance managed by Services Australia,” the interim report said.
“There is no evidence of probity advisers or public servants being present at 11 meetings, no contemporaneous notes or records of what was discussed made available, no apparent declaration of any conflicts of interest being made, and no evidence that other bidders or vendors unrelated to Synergy 360 were accorded similar treatment or access. These matters are of concern and may be considered further in the committee’s final report.”
The interim report also makes clear its displeasure at witnesses who were summoned but did not appear, namely Margerison.
“After several fruitless requests for a response to its questions, the committee resolved to issue a summons to Mr Margerison to require his attendance at a public hearing to provide answers to the committee’s questions,” the interim report said.
“In response, Mr Margerison informed the committee through his legal counsel that he was now resident overseas and that he had ‘severed all ties’ with the country of Australia. No evidence was provided to support this claim.”
However, Coalition members of the JCPAA hot out at the referral to the NACC, labelling it a political weaponisation that sought to wag the corruption watchdog.
“Coalition members consider the language used in the chair’s recommendation seeks to instruct or influence the NACC which is further evidence of the politicization of the allegations,” additional comments in the interim report said.
“Consequently, Coalition members do not support Recommendation 1 [the referral to the NACC] in the chair’s report and do not believe that there was justification for this separate interim report particularly given that the Inquiry into procurement at Services Australia and the NDIA is still underway.”
Wednesday’s NACC referral came at the same time as the Australian Financial Review reported that a series of investigations into consultancies were underway at the Department of Defence, and that several Freedom of Information requests had been denied by Defence on the basis the release of the documents “could reasonably be expected to prejudice the conduct of a current investigation of a possible breach of the law”.
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