This is a perfect example of how Ministers help their own family members and friends. If you have a family member or good friend high up in Government, then your business will be a success. This system of over inflated pricing for the Government has been going on for decades. Get on the weekend BBQ list, and drink some beers with the MP’s and you will have a business contract signed in no time.
The Primary Industries Department has hired a private investigator to get to the bottom of a printer cartridge scandal.
There are 41 South Australian Government agencies embroiled in the scandal over purchase of printer cartridges at heavily-inflated prices in exchange for gifts.
A State Parliamentary committee has heard Primary Industries staff have identified 134 invoices from suspect suppliers over four years.
The investigator, a former police officer, is helping review the cases.
Opposition frontbencher Rob Lucas doubts that will prove effective.
“The body that should be conducting an investigation isn’t a collection of private investigators. It should be the Auditor-General who should be conducting a comprehensive independent inquiry,” he said.
A Government-appointed working group has found almost $1 million has been paid to suspect suppliers.
http://www.abc.net.au/news/2011-12-13/printer-cartridges-private-investigator/3727728
PUBLIC servants spent $1.25m on overpriced office supplies, a Government investigation into the cartridges-for-kickbacks scandal has revealed.
Finance Minister Michael O’Brien has today tabled in Parliament the final report of the Procurement Working Group, a high-level panel convened to investigate allegations of corruption.
The Procurement Working Group was formed in November and has uncovered $1.25 million in spending with 21 linked companies offering gifts to public servants who bought overpriced printer toner.
The report confirms The Advertiser report last week that four public servants have been referred for charges.
It also shows investigations are not complete in SA Health and about 12 “matters” will be examined by the Crown Solicitor’s Office, which has power to refer individuals for police charges.
The graft was first uncovered in Western Australia in 2010 and invoices seen by AdelaideNow show SA public servants received gifts including televisions, iPods, kitchen equipment and shopping vouchers.
The Procurement Working Group was led by Department of Premier and Cabinet chief executive Jim Hallion. One of his staff has been referred to police. Three SA Health employees are also facing charges.
The final report acknowledges controls in government to stop graft were insufficient.
Reforms aimed at preventing recurrence include introducing a government-wide stationery procurement contract from September 1 this year.
“This matter has been an unfortunate and complex episode for the South Australian Government and public authorities caught up in the inappropriate purchase of printer cartridges from suppliers behaving perhaps not illegally, but unethically,” the report states.
“Nevertheless, as a result of the work undertaken by the Procurement Working Group at the support of Minister O’Brien, this matter has been provided an opportunity to strengthen the financial, procurement and human resources practices of public authorities.
“The new cross-government stationery contract (which Cabinet has mandated for use by all public authorities), greater awareness by public authorities of their financial management responsibilities and by suppliers … will play an important part in ensuring such practices do not recur.
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