Former minister Stephan Knoll met with bus contract company despite advice not to, Auditor-General’s report says

Former transport minister Stephan Knoll met with a company about running Adelaide’s buses despite advice not to, and failed to keep records, an Auditor-General’s report shows.

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Former Transport Minister Stephan Knoll met with a company interested in a bus contract despite advice from a department probity officer not to do so, a government watchdog has found.

The incident, outlined in an Auditor-General’s report, comes after The Advertiser revealed “loser” payments were being offered to unsuccessful bidders for a lucrative rail contract.

The report, released last week, has recommended better record keeping.

In evaluating new contracts for the operations of Adelaide’s bus and tram networks, the Auditor-General’s report did not identify any specific probity matters that would suggest that the procurement process was compromised.

Former transport minister Stephan Knoll. Picture: AAP / David Mariuz

However the record-keeping advice was included after it was discovered Mr Knoll went against advice by both a probity officer – appointed to provide independent advice – and the Department of Transport and Infrastructure chief executive.

The Auditor-General report “found no evidence of any specific probity matter that provided an advantage to any potential proponent and that compromised the fairness of the procurement process”.

However it did say that the response to the probity advice not to hold the meeting was not documented, no records (eg minutes) of the meetings were maintained, the way in which the probity risks were to be managed was not documented and the probity adviser was not informed that the meetings with the potential proponent occurred.

“As a result, the probity adviser could not assess and comment on any probity implications associated with the meetings,” the report said.

Mr Knoll was contacted for comment.

In the report a department response said “where the agency becomes aware of a meeting to be held with the minister, it will propose attendance of a senior officer, who will maintain a record of the meeting and provide it to the probity adviser”.

The Auditor-General’s advice comes as Treasurer Rob Lucas confirmed an Advertiser.com.au report that companies bidding for a lucrative rail contract would be entitled to a “loser” payment.

Whistleblowers have told T he Advertiser the payments were worth up to $1 million.

Mr Lucas said: “We are not confirming the actual numbers but what we will say is that the Labor Party … are a bunch of bloody hypocrites on this issue.

“This has been standard practice within the transport department for years under the former Labor government and it has continued.”

Opposition Labor Infrastructure spokesman Tom Koutsantonis argued the payments under Labor were different because the department gained a benefit by retaining intellectual property often in the form of designs.

Opposition Leader Peter Malinauskas said Labor has long raised concerns about the probity of the train and tram privatisation.

“South Australians have every right to be concerned about this whole privatisation process,” Mr Malinauskas said.