Scott Ryan (Victoria, Liberal Party, Shadow Parliamentary Secretary for Small Business and Fair Competition) Share this | Link to this | Hansard source

asked the Minister representing the Minister for Home Affairs, upon notice, on 28 June 2012:

1) Is the CrimTrac Board of Management aware of Mr Murray Rankin's appointment as Chairman of Connexxion Business Solutions; if so: when was the Board informed, and did Mr Rankin himself inform the Board of the appointment; if not, were any board members personally aware of the appointment.

2) On what basis did the Board make the decision to award contract for management advisory services and temporary personnel services at a cost indicated in the multiple AusTender Contract Notices, totalling approximately $785,551, for the period September 2009 to November 2011.

3) Is Connexxion Business Solutions currently providing services to CrimTrac; if so, what is the total cost of all services provided, for the period 1 July 2009 to 26 June 2012.

4) Did the Board consider any alternative service providers prior to awarding contracts to Connexxion Business Solutions; if so, which businesses; it not, why not.

5) Is the Board considering further contracts between CrimTrac and Connexxion Business Solutions.

6) Was the CrimTrac Chief Executive Officer (CEO) aware of the appointment of Mr Rankin as Chairman when the contracts referred to above were awarded; if so, when was the current CEO informed, and did Mr Rankin himself inform the CEO of the appointment.

7) Is the Board or the CEO of CrimTrac aware of any: (a) business nexus between Connexxion Business Solutions and Projects Assured; (b) contracts in which Connexxion Business Solutions was contracted for services provided by Projects Assured; and (c) subcontractors contracted by Connexxion Business Solutions to conduct work for CrimTrac; if so, can the details relating to each instance be provided.

8) Do any CrimTrac Board members, including the CEO, have a nexus with, or hold an appointment to the Board of, any other company that has dealings with CrimTrac, which may give rise to a conflict of interest.

9) Can a list be provided detailing the number of contracts CrimTrac has entered into with Connexxion Business Solutions that were not advertised on AusTender, including: (a) the total cost of each contract; and (b) other specific relevant information, such as services provided.

10) Can details be provided of all contracts entered into between CrimTrac and Connexxion Business Solutions to date.

Joe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

The Minister has provided the following answer to the honourable senator's question:

The Minister has been advised that the matters referred to above have been considered by the AFP and Mr Rob Cornall AO and no misconduct or criminality has been identified. Governance issues relating to CrimTrac are being addressed in a number of ways. First, the States, Territories and the Commonwealth are in the process of moving CrimTrac onto a statutory footing with the normal requirements and safeguards that apply to a FMA Act agency. Second, the CrimTrac CEO is currently revising the Board practices relating conflict of interest and has strengthened procurement practices at CrimTrac including revising the Chief Executive Instructions, revising the reporting arrangements so that the procurement team now reports directly to the legal directorate and there is a mandatory requirement for all staff to attend procurement training. Third, the Government has announced that it is taking steps to bring CrimTrac, Austrac and Biosecurity staff at DAFF under the jurisdiction of ACLEI from 1 July 2013.

1) The CEO of CrimTrac advises that he informed the Board of Mr Rankin's role with Connexxion on 1 December 2011; Mr Rankin advises he did not directly inform the Board, for your information Mr Rankin no longer provides services to the CrimTrac Board or the agency.

2) The CrimTrac Board has no role in awarding contracts or the selection of preferred service providers for CrimTrac and no contracts have ever been entered into between the Board and any entity.

3) No.

4) See 2) above.

5) See 2) above.

6) The former CrimTrac CEO advises that he was unaware of Mr Rankin's appointment as the Chairman of Connexxion Business Solutions when any contracts with this company were awarded and cannot recall being advised of any link between Mr Rankin and any company which was awarded contracts by CrimTrac during his tenure as CEO. Mr Smith advises that he became aware of this appointment on 28 November 2011 but was not advised of this by Mr Rankin.

7) In respect of the Board see 2) above.

(a) Yes the CEO advises that he is aware a business relationship exists between Connexxion Business Solutions and Projects Assured

(b) Work Order 2011/01 (Project and Program Management Framework Development and Implementation), and Work Order 2011/02 (Gateway Review) permitted subcontracting to Projects Assured. Commonwealth contracts generally permit subcontracting arrangements by prior agreement which occurred in this case.

(c) See answer 7(b).

8) No CrimTrac Board of Management members have advised of any business dealings with any service providers to the CrimTrac agency which would give rise to a conflict of interest. The CEO advises that he does not have a nexus with, or hold an appointment to the Board of, any company that has dealings with CrimTrac which may give rise to a conflict of interest.

9) CrimTrac records indicate various Work Orders (each a 'contract') have been placed with Connexxion Business Solutions following limited tender processes pursuant to the Centrelink Deed of Standing Offer for ICT Contractor Services.

The Centrelink ICT Services Deed of Standing Offer was established in 2007 following an open market tender procurement coordinated by Centrelink. CrimTrac is an FMA Act Agency able to 'piggyback' the arrangement. CrimTrac does this by requesting quotes from participating suppliers on the panel arrangement and placing a Work Order.

Requests for quotes to members of the Centrelink ICT Services panel were not advertised on AusTender, as it is not a requirement to do so.

CrimTrac records indicate that four (4) Work Orders have been placed with Connexxion Business Solutions since

1 July 2010 pursuant to the Centrelink Deed of Standing Offer for ICT Contractor Services:

Work Order Detail Dated Value

Work Order 2011/0001: review and development of project and program management 31 January 2011 $82,778.85 (inc GST)

Varied in August 2011 to increase contract value to $125,472.75 (inc GST)

Work Order ICT 2011/0002: Gateway review On or about 7/2/2011 Contract notes estimated value of services at $144,522.00 (ex GST)

Work Order RFQ 83: technical review of SharePoint 2/8/2011 $15,840 (ex GST)

Work Order RFQ 85: technical review, implementation and integration testing 25/8/2011 $57,728 (ex GST)

10) Contracts included in response to question 9) and the additional contract:

Work Order Detail Dated Contract Value

RFQ 49: Middleware and integration specialist On or about 11/09/2008 $228,800.00 (inc GST)

The above contract was awarded under CrimTrac's own ICT Services Panel established following an open market tender procurement coordinated by CrimTrac. The panel arrangement expired in or about April 2011.