Stuart Robert-linked contracts need closer scrutiny as department links revealed: inquiry

Save articles for later

Add articles to your saved list and come back to them any time.

A series of multi-million dollar contracts linked to a friend of former Morrison government minister Stuart Robert will come under fresh scrutiny as new revelations emerge about a senior public servant allegedly involved in some of the contracts.

The contracts in question were signed with the National Disability Insurance Agency (NDIA) and Services Australia and were linked to a consulting company, Synergy 360, part-owned by two friends of Robert, who was then in charge of the portfolio.

Synergy 360part-owner David Milo, his friend Coalition MP Stuart Robert and another Synergy 360 co-owner John Margerison.Credit: Fairfax Media

The chief executive of Services Australia, Rebecca Skinner, told a parliamentary committee inquiry yesterday that she would be “further investigating a number of matters as they are raised”.

An independent inquiry run by Ian Watt, a former secretary of the Department of Prime Minister and Cabinet, has already scrutinised documentation on the contracts held by Services Australia and the NDIA and found five of the 19 were subject to special concern.

But asked by the chairman of the committee, Labor MP Julian Hill, if there would need to be a different, more thorough investigation “which has powers to compel evidence and witnesses”, Skinner said: “That’s correct”.

Kham Xaysavanh

Skinner also confirmed that a senior public servant, Damian West, had been the head of the division when some of the contracts were signed in 2019. The Age and The Sydney Morning Herald reported in March that a senior public servant, who can now be revealed as West, who oversaw the awarding of contracts to Synergy 360, was a long-standing friend of a part-owner of the company, Kham Xaysavanh. She told the inquiry she had known him for 20 years and he was her “best friend’s brother”.

The other co-owners of Synergy 360 are ex-military official David Milo and entrepreneur John Margerison, who are both friends of Robert.

The parliamentary committee heard West had not lodged a conflict-of-interest declaration with the department. The chief financial officer of Services Australia, Angela Diamond, told the inquiry that under public service rules any potential perceived or real conflict should be declared.

Committee chairman Hill said one of the contracts in question was for $9600 – just under the $10,000 threshold that requires more scrutiny. Once it was in place, the contract was varied to $29,000 – a process that is not subject to as much scrutiny. Another was worth $79,000, which is $1000 less than a threshold which requires a tender process.

West at the time was the general manager of business integrity at Services Australia. He met the owners of Synergy 360 for drinks at Xaysavanh’s home at the same time the consulting firm was being paid by its corporate clients to advise them on how to win contracts from Services Australia.

They also socialised with Synergy’s other owner, David Milo, on several occasions, including at a Canberra pub, to discuss the department’s relationship with Synergy 360.

When quizzed about his relationship with Xaysavanh, West told The Age and Herald recently: “She is a friend of mine.”

In total, contracts involving Synergy 360 with Federal government agencies were worth at least $374 million. Companies used Synergy 360 to line up work with the federal government including large technology contracts, property deals and consulting projects.

Watt called for further investigation into 19 contracts. Robert responded to Watt’s report by saying it showed “zero, none, nil misconduct”.

The committee inquiry was called after Government Services Minister Bill Shorten wrote to it saying the issues needed investigation because the Watt review only looked at the actions of public service officials. The inquiry continues.

Every Friday, Please Explain’s expert panel brings you analysis and the inside take on the big political issues of the week. Subscribe here.

Most Viewed in Politics

From our partners

Source: Read Full Article