Audit Committee examines findings of the Watt procurement review and NDIA issues in the Commonwealth Financial Statements

THE Joint Committee of Public Accounts and Audit (JCPAA) held a public hearing on Friday, April 14, to examine the findings of the Independent Review of Services Australia and NDIA Procurement and Contracting, led by Ian Watt AC (the Watt review), as part of its ongoing inquiry into Commonwealth procurement.

The Watt review examined 95 procurements undertaken by Services Australia and NDIA from 2015–16 to the present, and found that 19 procurements with an approximate value of $374 million showed inconsistencies with the Commonwealth Procurement Rules or did not show good practice.

Julian Hill MP, the Chair of the Committee, noted that Dr Watt’s findings closely mirrored the issues that had been raised by the Australian National Audit Office during the committee’s procurement inquiry.

“The Watt review flagged five of the 95 procurements as being of lower standard than comparable procurements undertaken by the agencies,” Mr Hill said. “The committee is keen to question the key parties involved in the procurement process to gain an understanding of where the issues lie and how they have been addressed.”

The committee heard from Dr Watt AC, followed by the two agencies subject of the review, as well as representatives from a number of companies who were awarded contracts identified as being of particular concern in the Watt review including Infosys Pty Ltd, Portland, Synergy 360 / Milo Consulting and Australian Property Reserve Pty Ltd.

Following the session on procurement, the JCPAA will continue its program of public hearings for its inquiry into Commonwealth Financial Statements hearing from the NDIA.

Friday's hearings were held in Canberra.

Further information about the inquiries is available on the Committee website.

 

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