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.

Media release issue date: Wednesday, 26 June 2024

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, Mr Julian Hill MP said that “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.” Mr Hill further stated that “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 noted that “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.” Mr Hill further stated: “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 remarked that “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 3 months of the tabling of this report of all hospitality provided to all Commonwealth officials by agency for the last 3 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. Media inquiries Mr Julian Hill MP, Chair of the Joint Committee of Public Accounts and Audit Electorate office: (03) 9791 7770 Media contact: Laura Hooper, Office of Julian Hill MP 0422 851 157; Laura.hooper@aph.gov.au For background information Committee Secretariat 02 6277 4615 jcpaa@aph.gov.au For more information about this Committee, you can visit its website. On the site, you can make a submission to an inquiry, read other submissions, and get details for upcoming public hearings. You can also track the Committee and receive email updates by clicking on the blue ‘Track Committee’ button in the bottom right-hand corner of the page.

The Joint Committee of Public Accounts and Audit is holding public hearings which include the CEO of the NDIA , the Secretary of the Department of Health, and the first public hearings kicking off the new policy and program design and implementation inquiry.

Media release issue date: Monday, 29 January 2024

The Joint Committee of Public Accounts and Audit (JCPAA) is holding public hearings this Thursday, 1 February and Friday, 2 February 2024 which include: The CEO of the National Disability Insurance Agency (NDIA) appearing as part of the procurement at Services Australia and the National Disability Insurance Agency inquiry. The Secretary of the Department of Health is appearing for the inquiry into probity and ethics in the Australian public sector. The first public hearings kicking off the new policy and program design and implementation inquiry. The Chair of the Committee, Mr Julian Hill MP, highlighted the importance of starting the year strongly with the examination of the agencies involved in the current committee inquiries. “The Committee was concerned by evidence received last year in a public hearing with vendor Salesforce regarding procurement at the NDIA arising from the Watt Review. The CEO of the NDIA will appear so the Committee can examine issues arising, to the extent possible, while further internal investigations continue,” said Mr Hill. “The Secretary of the Department of Health will appear to explore issues arising from the Department of Health’s earlier appearance in 2023, and the subsequent hearing with the Australian Government Solicitor.” “The Committee will kick-off public hearings in the program and policy design implementation inquiry to investigate serious findings across the Australian Taxation Office (ATO), Home Affairs, Treasury, Agriculture, Education and Health and Aged Care to understand the larger issues at play.” For context, these first public hearings for the policy and program design and implementation inquiry will include: Thursday A roundtable with the ATO, the Department of Home Affairs, and the Department of the Treasury will appear to examine the Australian National Audit Office (ANAO) report No. 39 of 2022–23 Implementation of the Government Response to the Black Economy Taskforce report. The Department of Home Affairs will appear to discuss the ANAO report No. 16 of 2022–23 Management of Migration to Australia—Family Migration Program report. Friday The Department of Agriculture, Fisheries and Forestry will appear to examine the following reports: ANAO report No. 6 of 2022–23 Implementation of the Export Control Legislative Framework report; and ANAO report No. 17 of 2022–23 Department of Agriculture, Fisheries and Forestry’s cultural reform report. The Department of Education will appear to examine the ANAO report No. 42 of 2022–23 Access and Participation Programs for Regional and Remote Students report. The Department of Health and Aged Care will appear to examine the ANAO report No. 10 of 2022–23 Expansion of Telehealth Services report. Public hearing details Date:              Thursday 1 February 2024 Time:             1.00pm–5.00pm (AEDT) Venue:           Committee Room 2R1, Parliament House, Canberra Date:              Friday 2 February 2024 Time:              9.15am–3.00pm (AEDT) Venue:           Committee Room 2R1, Parliament House, Canberra Media inquiries For all media enquiries, please contact Laura Hooper on (03) 9791 7770, or via email: Laura.Hooper@aph.gov.au. For background information Committee Secretariat 02 6277 4615 jcpaa@aph.gov.au For more information about this Committee, you can visit its website. On the site, you can make a submission to an inquiry, read other submissions, and get details for upcoming public hearings. You can also track the Committee and receive email updates by clicking on the blue ‘Track this Committee’ button in the bottom right-hand corner of the page.

The Joint Committee of Public Accounts and Audit has tabled an interim report for its inquiry into procurement at Services Australia and the NDIA which were connected with consulting firm Synergy 360.

Media release issue date: Wednesday, 13 September 2023

The Joint Committee of Public Accounts and Audit (JCPAA) has tabled an interim report for its inquiry into procurement at Services Australia and the NDIA which were connected with consulting firm Synergy 360. The report recommends that the National Anti-Corruption Commission (NACC) examine the evidence gathered by the Committee to date to determine whether to conduct a fuller investigation to establish the substance of the serious allegations made in relation to former Minister Stuart Robert and Synergy 360. Committee Chair Julian Hill MP said “A referral to the NACC should never be made lightly and is not done so here. There appears to be no other appropriate course of action however in light of the serious and systemic nature of the allegations raised. “The Committee has established a number of matters but is unable, given its resources, lack of forensic accounting expertise, and the refusal so far of key witnesses to provide documents or fully answer questions, to make clear findings as to the truth. An agency with compulsory questioning, document gathering, and investigatory powers may be able to properly assess these matters. “Throughout this inquiry the Committee has sought to always act in the public interest. The inquiry is ongoing, and a final report will be tabled as soon as possible.” Concerning reports were received of alleged financial impropriety, improper relationships and undisclosed conflicts of interest with parties receiving contracts from the Commonwealth. Rebutting these allegations, Mr Robert, his longtime friend, business partner and political fundraiser Mr John Margerison, Synergy 360 principal Mr David Milo and others strongly deny improper conduct, hence the evidence before the inquiry is directly conflicting. The Committee has also recommended that the Speaker authorise the commissioning of legal advice regarding the nature of the Committee’s statutory powers under sections 13 – 15 of its legislation, including situations where a person claims to be resident overseas. Further information is available on the inquiry website. Media inquiries Mr Julian Hill MP, Chair of the Joint Committee of Public Accounts and Audit on (03) 9791 7770 (Electorate Office). For background information Committee Secretariat 02 6277 4615 jcpaa@aph.gov.au For more information about this Committee, you can visit its website. On the site, you can make a submission to an inquiry, read other submissions, and get details for upcoming public hearings. You can also track the Committee and receive email updates by clicking on the blue ‘Track this Committee’ button in the bottom right-hand corner of the page.

Public hearings by the JCPAA include an appearance by the CEO of BAE Systems Australia, the first public hearings for JCPAA's inquiry into probity and ethics in the Australian public sector, and Services Australia’s CEO regarding Infosys’ Entitlement Calculator Engine project.

Media release issue date: Wednesday, 6 September 2023

Public hearings this Friday 8 September by the Joint Committee of Public Accounts and Audit (JCPAA) include: an appearance by the CEO of BAE Systems Australia regarding the $46 billion Hunter Class Frigates project, as part of the inquiry into Defence Major Projects Reports and Procurement of Hunter Class Frigates the first public hearings for its Inquiry into probity and ethics in the Australian public sector, examining potential systemic factors contributing to poor ethical behaviour Services Australia’s CEO regarding Infosys’ Entitlement Calculator Engine project as part of the Procurement at Services Australia and the National Disability Insurance Agency Inquiry. The first public hearing in the probity and ethics inquiry will include: a roundtable with Australia’s financial regulators—the Australian Competition and Consumer Commission, Australian Prudential Regulation Authority, and Australian Securities and Investments Commission the Department of Health and Aged Care (Health) on the Community Health and Hospitals Program the Department of Infrastructure, Transport, Regional Development, Communications and the Arts (DITRDCA) on ‘Artbank’. Committee Chair Mr Julian Hill MP said “while the three financial regulators received generally positive reviews following audits by the Australian National Audit Office (ANAO), the reports regarding the Community Health and Hospitals and Artbank programs were very concerning”. “Serious shortcomings were found by the ANAO in Health’s administration of the Community Health and Hospitals Program, and in DITRDCA’s administration of the Artbank program. Light must be shone on failings such as these so we can strengthen government integrity and accountability. “The Committee is very keen to hear directly from BAE Systems Australia regarding the procurement and progress of the $46 billion Hunter Class Frigate program. “Services Australia will have an opportunity to respond to evidence provided by Infosys and explain why the $191 million Entitlement Calculator Engine commissioned in 2019 was written off”. Public hearing details Date: Friday 8 September 2023 Time: 9.00am – 4.00pm Venue: Committee Room 2R1, Parliament House, Canberra Media inquiries Mr Julian Hill MP, Chair of the Joint Committee of Public Accounts and Audit Electorate office: (03) 9791 7770 For background information Committee Secretariat 02 6277 4615 jcpaa@aph.gov.au For more information about this Committee, you can visit its website. On the site, you can make a submission to an inquiry, read other submissions, and get details for upcoming public hearings. You can also track the Committee and receive email updates by clicking on the blue ‘Track this Committee’ button in the bottom right hand corner of the page.

On 27 June the Joint Committee of Public Accounts and Audit (JCPAA) authorised an Order to be issued Mr John Magerison requiring him to answer questions put to him on 26 April 2023, and summonsing him to appear before the Committee in a public hearing this Friday 28 July 2023.

Media release issue date: Monday, 24 July 2023

On 27 June the Joint Committee of Public Accounts and Audit (JCPAA) authorised an Order to be issued to Mr John Magerison requiring him to answer questions put to him on 26 April 2023, and summonsing him to appear before the Committee in a public hearing this Friday 28 July 2023. Unfortunately the part of this Friday’s public hearing into procurement at Services Australia and the NDIA which was to hear from Mr John Margerison can no longer proceed. Mr Margerison’s lawyer has informed the Committee that Mr Margerison is now resident overseas, having severed all ties with the country of Australia many weeks ago! Mr Margerison’s lawyer has not disclosed Mr Margerison’s whereabouts. Further, as Mr Margerison claims via his lawyer to now be located and resident overseas, he now considers himself outside the jurisdiction of the Parliament. Committee Chair Mr Julian Hill said that the JCPAA will consider the letter from Mr Margerison’s lawyer at its next private meeting. Mr Hill said, “That Mr Margerison’s lawyer now claims he has left and severed all ties with Australia is a somewhat surprising turn of events indeed. Mr Margerison’s whereabouts remains a matter of great mystery. “Notwithstanding Mr Margerison’s refusal to fully address the questions put to him in April and appear this Friday, the JCPAA will continue to conduct this inquiry in a proper fashion. The Committee will make findings based on the evidence before it. It remains within the JCPAA’s power to recommend referrals to other investigative bodies with additional resources and powers.” The remainder of the hearing – which relates to the JCPAA’s inquiry into annual performance statements – is unaffected and will proceed. Further information is available on the inquiry website. Media inquiries Mr Julian Hill MP, Chair of the Joint Committee of Public Accounts and Audit on (03) 9791 7770 (Electorate Office). For background information Committee Secretariat 02 6277 4615 jcpaa@aph.gov.au For more information about this Committee, you can visit its website. On the site, you can make a submission to an inquiry, read other submissions, and get details for upcoming public hearings. You can also track the Committee and receive email updates by clicking on the blue ‘Track Committee’ button in the bottom right-hand corner of the page.

The Joint Committee of Public Accounts and Audit has resolved to order Mr John Margerison to produce all documents requested as relevant to the inquiry in the questions issued to him on 26 April 2023, and provide full responses to all questions.

Media release issue date: Wednesday, 28 June 2023

The Joint Committee of Public Accounts and Audit has resolved to order Mr John Margerison to: produce all documents requested as relevant to the inquiry in the questions issued to him on 26 April 2023 and provide full responses to all questions, by 12 pm 21 July 2023, as despite repeated requests, answers and documents have not been forthcoming, and appear at a hearing before the Committee on 28 July 2023 unless advised otherwise. In the interests of transparency, the Committee has further resolved to: publish a submission in the form of a signed statement provided by Mr Anthony Daly to the Committee write to people named in Mr Daly’s statement inviting their response by 12pm 24 July issue a public reminder that witnesses before Committees are protected with respect to evidence given by the law of Parliamentary privilege and that interfering with or harassing witnesses in any way may be regarded as a contempt of the Parliament, and authorise the Chair to issue public statements relating to these actions and the Committee’s ongoing inquiry. The Committee has received a number of submissions and last week held an in-camera hearing with evidence given under oath by Mr Anthony Daly, as well as a public hearing with Infosys, a client of Synergy 360. In Friday’s hearing the Committee heard that Infosys paid Synergy 360 in the order of $16 million over 5 years for State and Federal linked projects including retainers, ‘success fees’ and ‘business development’ work, and held 11 meetings with former Minister Stuart Robert to discuss major projects and digital transformation sometimes without public servants present. The Committee has requested further evidence from Infosys on a number of matters. This inquiry was established as revelations from public hearings raised serious concerns regarding the expenditure of public funds in the NDIA and Services Australia under the previous government, as well as the conduct of parties associated with these procurements. The Chair of the Committee Julian Hill MP said ‘The Committee considers that these are the appropriate next steps in the public interest, given the importance of examining the serious questions arising from the Watt Report into Procurement at Services Australia and the NDIA. The Taskforce and Dr Watt as the Independent Reviewer examined the actions of public officials, but were not able to examine the actions of Ministers, vendors or external parties including advisory firms and lobbyists.’ Mr Hill stressed ‘The Committee has reached no conclusions at this stage and invites anyone with information to provide evidence to the Committee. Further public and in camera hearings are expected to be held in late July and August.’ Media enquiries Mr Julian Hill MP, Chair of the Joint Committee of Public Accounts and Audit on 03 9791 7770 (Electorate Office). For background information Committee Secretariat 02 6277 4615 jcpaa@aph.gov.au For more information about this Committee, you can visit its website. On the site, you can make a submission to an inquiry, read other submissions, and get details for upcoming public hearings. You can also track the Committee and receive email updates by clicking on the blue ‘Track Committee’ button in the bottom right-hand corner of the page.

The Joint Committee of Public Accounts and Audit (JCPAA) will hold a public hearing this afternoon for its inquiry into a series of procurements conducted by Services Australia and the NDIA which were connected with consulting firm Synergy 360.

Media release issue date: Friday, 23 June 2023

The Joint Committee of Public Accounts and Audit (JCPAA) will hold a public hearing this afternoon for its inquiry into a series of procurements conducted by Services Australia and the NDIA which were connected with consulting firm Synergy 360. The hearing will feature Infosys technologies, a firm mentioned in the media reporting that led to the Independent Review of Services Australia and NDIA Procurement and Contracting (the Watt Review). Committee Chair, Mr Julian Hill MP, said that the Committee is examining the expenditure of public funds at the NDIA and Services Australia, as well as the conduct of parties associated with procurements by those agencies. “The Committee considers that the serious problems with these procurements identified by the Watt Review warrant thorough investigation and will leave no stone unturned.” Details for the public hearing are: Date: Friday 23 June 2023 Time: 3.15pm – 5.00pm AEST Location: Committee Room 2R1, Parliament House, Canberra. The hearing will be broadcast on the APH Website. Further information is available on the inquiry website. Media inquiries Mr Julian Hill MP, Chair of the Joint Committee of Public Accounts and Audit on (03) 9791 7770 (Electorate Office). For background information Committee Secretariat 02 6277 4615 jcpaa@aph.gov.au For more information about this Committee, you can visit its website. On the site, you can make a submission to an inquiry, read other submissions, and get details for upcoming public hearings. You can also track the Committee and receive email updates by clicking on the blue ‘Track Committee’ button in the bottom right-hand corner of the page.

The Joint Committee of Public Accounts and Audit (JCPAA) has initiated a new inquiry to examine the findings of the Watt review into procurement at Services Australia and the National Disability Insurance Agency (NDIA).

Media release issue date: Wednesday, 17 May 2023

The Joint Committee of Public Accounts and Audit (JCPAA) has initiated a new inquiry to examine the findings of the Watt review into procurement at Services Australia and the National Disability Insurance Agency (NDIA). The inquiry will focus on the matters contained in or related to the Independent Review of Services Australia and NDIA Procurement and Contracting (the Watt Review) arising from media reports concerning the activities of government advisory firm Synergy 360. The issues raised by the Watt Review were being considered as part of the current inquiry into Commonwealth procurement, but following initial hearings the Chair of the Committee, Mr Julian Hill MP, said that “the revelations from the initial public hearings raised serious concerns regarding the expenditure of public funds in the NDIA and Services Australia under the previous government, as well as the conduct of parties associated with these procurements,” Mr Hill said. “The Committee concluded that these issues warrant examination in a fresh inquiry to properly explore the serious issues. “In the interests of transparency the Committee has also released a trove of emails referred to in public hearings that fuelled the media reports that led to the Watt Review.” The new inquiry will have access to all evidence and materials received during the course of the previous inquiry. The Committee invites submissions from interested parties by 6 June 2023. Further information is available on the inquiry website. Media inquiries Mr Julian Hill MP, Chair of the Joint Committee of Public Accounts and Audit (03) 9791 7770 (Electorate Office). For background information Committee Secretariat 02 6277 4615 jcpaa@aph.gov.au