NDIA officials failed to disclose years of secret gifts and hospitality received from global IT giant Salesforce despite the company securing lucrative government contracts and massive variations.

The Joint Committee of Public Accounts and Audit tabled its final report today for its Inquiry into procurement at Services Australia and the National Disability Insurance Agency (NDIA) finding key aspects fell short of the Commonwealth Procurement Rules and ethical requirements.

The findings follow the release of the inquiry’s interim report in September 2023, which focussed on the activities of the Synergy 360 consulting firm as an advisor to the technology company Infosys in obtaining Government IT contracts.

That report raised serious questions about potential financial impropriety and improper relationships with parties receiving contracts from the Commonwealth and referred those matters to the National Anti-Corruption Commission (NACC).

In this final report for the inquiry, the committee investigated the procurement of NDIA’s new customer relationship platform, known as the PACE system, from the US based global IT company Salesforce.

Committee Chair, Julian Hill MP said, "It was perplexing that the value for money assessments in this procurement gave no explicit weighting to price as a key factor in scoring and ranking proposals.”

"The sizes of the contract variations were significant, now $135 million up from $27 million at inception … a substantial proportion was due to significant changes in scope. Other vendors were basically denied the opportunity to tender for the product ultimately being delivered.”

The most concerning issue to emerge from the evidence was what appeared to be clear breaches of NDIA’s Gifts and Hospitality policies by its officials.

Mr Hill said, "Although NDIA gave evidence that no declarations of any hospitality relating to this contract were made by its staff, Salesforce subsequently provided written evidence of more than 100 instances of hospitality and/or gifts, including meals, drinks and golf outings, passing to NDIA officials over an almost five-year period. This was before and after the award of the contract, and throughout the period of contract variations.”

“The premise stated by NDIA for its hospitality policy is that none of its officials should accept gifts that could be seen to compromise their integrity. This was clearly not followed.”

After the interim report was tabled, the committee learned also that Synergy 360 made an unsolicited approach to Salesforce in advance of the PACE tender process and that meetings took place between former Minister Stuart Robert, Synergy 360 and Salesforce before and after the awarding of the contract.

Mr Hill rsaid, "Three meetings with former Minister Robert occurred with no written records available of what was discussed or evidence that other potential vendors who were not Synergy 360 clients were afforded similar access. Ultimately Salesforce secured a major government contract and later benefited from a series of lucrative variations.”

The committee makes five recommendations in this final report including that the:

• Department of Finance and the Digital Transformation Agency take appropriate action to understand the extent to which inappropriate cultivation of Commonwealth officials may be occurring by major ICT vendors; and
• Australian National Audit Office consider future audits of potential gifts and hospitality issues in the public sector to identify practices of concern.

The Chair has also written to Salesforce asking:

• If Salesforce’s Office of Global Ethics and Integrity had approved each and all of these payments in accordance with their own corporate policy?
• Who makes these decisions within Salesforce’s Office of Global Ethics and Integrity?
• If Salesforce’s Office of Global Ethics and Integrity has ever declined a request to approve hospitality for an Australian Commonwealth official?
• For Salesforce to provide a table within three months of the tabling of this report of all hospitality provided to all Commonwealth officials by agency for the last three years (names redacted) consistent with the format Salesforce helpfully provided in relation to the NDIA, and advice as to whether each item was approved by Salesforce’s Office of Global Ethics and Integrity.  

The report can be downloaded from the inquiry website.

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THE House of Representatives Standing Committee on Communications and the Arts is holding hearings this week for its inquiry into the challenges and opportunities within the Australian live music industry.

Industry stakeholders, including peak bodies, government agencies and statutory authorities, have been invited to speak with the committee.

Committee Chair, Brian Mitchell MP, said, "Live music has significant cultural, social, and economic value, and so the committee looks forward to discussing the operational and regulatory challenges that have been raised in the many submissions to the inquiry.

"The committee hopes to gain insights into what uniquely frames the current Australian live music environment — beyond post-COVID-19 supply chain issues and inflationary pressures which do continue to significantly impact the sector; but also challenge most sectors of the economy," Mr Mitchell said.

Some of the key challenges offered by contributors include exponentially high increases in insurance premiums relative to the quantum of increase in other inputs; costs and impediments in meeting state, territory and local government regulatory requirements, and changing audience preferences and behaviour.

The committee has also received evidence about the changing modes of discoverability of artists, the current royalties regime and the revolution in production and dissemination of recorded music which impacts the livelihood of live music professionals.

Details of the public hearings are below, with the full programs and terms of reference available on the inquiry webpage.

More information about the committee, including membership, may be found on the Committee’s website.

Public hearing details

Date: Wednesday, 26 June 2024
Time: 12.45pm – 1.30pm
Location: Committee Room 1R6, Parliament House, Canberra

Date: Friday, 28 June 2024
Time: 9am – 1.20pm
Location: Committee Room 1R2, Parliament House, Canberra

These hearing will be broadcast live at aph.gov.au/live.

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THE Parliamentary Joint Committee on Intelligence and Security has commenced a review of the listing of Ansar Allah as a terrorist organisation under the Criminal Code Act 1995 (Criminal Code).

Ansar Allah, also referred to as the Huthi or Houthi movement, is a Zaydi Shia violent extremist organisation based in Yemen. Since its formation in the early 1990s, Ansar Allah has evolved from a religiously motivated organisation to an organisation with political and military motivations.

Ansar Allah has conducted numerous violent terrorist attacks between 2022 and 2024 directed at Yemeni government forces, civilians, foreign states and foreign owned vessels passing through the Bab el-Mandeb Strait.

Ansar Allah’s listing by the Australian Government in May 2024 is the first time it has been designated as a terrorist organisation under the Criminal Code.

Listing Ansar Allah as a terrorist organisation triggers the application of a number of offences under the Criminal Code relating to membership of, support for, or association with the organisation.

Section 102.1A of the Criminal Code provides that the committee may review listings of terrorist organisations and report its findings to each house of Parliament within the 15 sitting day disallowance period.

Members of the public are invited to make submissions to this review by July 12, 2024.

Further information on the inquiry can be obtained from the committee’s website.

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THE Australian Parliament’s Agriculture Committee has presented its advisory report for its inquiry into the Export Control Amendment (Ending Live Sheep Exports by Sea) Bill 2024, which will end the live sheep export trade by sea by May 1, 2028.

The inquiry examined the provisions of the bill, including the authority for Commonwealth spending to assist those impacted to prepare and adapt.

Committee Chair, Meryl Swanson MP, said, "The bill fulfils the Albanese Government’s election promise to end the live export of sheep by sea while providing time and money for the orderly transition of industry to new avenues of production and trade."

While acknowledging the strong opposition of sections of industry and local WA communities, Ms Swanson said, "This matter has been extensively canvassed by governments and communities. The time has come to transition away from this trade. Like all transitions, it will not be without pain, but the outcome will provide industry with long-term certainty in line with community expectations."

In addition to recommending that the bill be passed, the Committee has made two recommendations including that the Australian Government:

• considers making additional funding available to support the industry transition, potentially through the 2026 stocktake of industry progress; and
• continues to seek opportunities to work with the Western Australian Government to refine and implement the transition support package.

The Committee held two public hearings in Canberra and Muresk, Western Australia, which took important evidence from a range of stakeholders representing industry, government, local communities and animal welfare groups. It received more than 13,000 contributions from people supporting and opposing the bill and offering feedback on its contents.

The Committee thanked those who contributed to the inquiry through written submissions, correspondence and giving evidence at public hearings.

The full report can be found on the Committee’s inquiry webpage.

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