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The Canberra Times
The Canberra Times
Connor Pearce

The $31 million dept contract being sent to the anti-corruption commission

A controversial procurement process for a scrapped industry development program has been referred to the National Anti-Corruption Commission, and the department has reopened its investigation as inquiries into the payment of a $900,000 success fee and $31 million contract continue.

During Senate estimates, Greens senator Barbara Pocock returned to questions about the management of a business advisory program run by the Department of Industry in 2019.

Senator Pocock tabled a letter to Ben Bucknell, who was unsuccessful in the original Entrepreneurs Program tender, from Industry Department secretary Meghan Quinn that referred to corruption allegations raised by Mr Bucknell and others about the awarding of a tender to another business, i4Connect.

i4Connect was a business set up for the purpose of bidding for a tender to provide outsourced business advisory services under the Entrepreneurs Program.

Despite costing well in excess of the other bids, i4Connect was successful, and received the $31 million contract.

In the letter, Ms Quinn revealed that following internal and independent investigations, the department has referred the matter to the AFP and National Anti-Corruption Commission.

Department of Industry Science and Resources secretary Meghan Quinn appearing at a previous Senate estimates. Picture by Sitthixay Ditthavong

Responding to questions from Senator Pocock on Thursday afternoon, deputy secretary Neal Mason confirmed the referral to both agencies occurred on July 17, 2024.

Since then, the AFP determined that there was insufficient evidence presented for it to conduct criminal investigations, while the NACC's inquiries are ongoing.

But after conversations with the AFP, the department has now re-started its own inquiries.

"As a consequence, we are pursuing additional activity," Mr Mason said.

A sign outside the Department of Industry, Science and Resources in Canberra. Picture by Keegan Carroll

Mr Mason said the department would seek a range of additional information from a company and work to determine what access to departmental systems that organisation may or may not have had.

Senator Pocock has been pursuing the department for why it did not request to inspect the books of i4Connect, which was alleged to have paid a $900,000 success fee to a contractor working on the procurement process.

Mr Mason confirmed the department was now seeking access to i4Connect's books.

Ms Quinn said earlier investigations ran aground as those making the allegations were not providing any evidence to support their claims. However, Ms Quinn said the Department had taken the allegations seriously and had followed a methodical approach to investigate the claims.

Janean Richards, chief counsel for the department, said while assisting another company with a bid was not illegal, if a person had disclosed confidential information that would amount to unlawful conduct.

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