Leaked documents reveal Bombardier Transportation call for probe before Keolis Downer won Adelaide rail contract
The rail union is demanding the ICAC investigate Adelaide’s $2.14 billion rail privatisation deal, after leaks showed the unsuccessful bidder had doubts about the tender process.
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The $2.14 billion contract to operate Adelaide’s public train system should be investigated by the Independent Commissioner Against Corruption, the union representing rail workers says.
The Advertiser has revealed leaked emails showed an unsuccessful bidder for the contract asked for the process to be subject to an “independent probity investigation” just weeks before it was awarded to a competitor.
Rail, Tram and Bus Union (RTBU) SA/NT Secretary Darren Phillips on Thursday said the latest revelations about the probity concerns by that bidder Bombardier Transportation further added to long-held suspicions the State Government was favouring the bid from Keolis Downer, which won the tender last week.
“From the very beginning, the Marshall Government has refused to release vital information about the privatisation process, and failed to meet the most basic governance standards,” Mr Phillips said.
“The whole thing looks dodgy. The people of South Australia deserve to know what has gone on here, and how over $2 billion of their money ended up in the hands of a French Government-owned company.”
A Department of Transport and Infrastructure spokesman on Wednesday downplayed concerns about leaks, one of the concerns by the unsuccessful bidder.
“The independent probity adviser conducted a review into the circumstances and impact of the disclosure of this information and concluded that it did not affect the outcome of the procurement process,” he said.
He said an Auditor-General’s report, required by law, into the handling of the contract will be made public by the Auditor-General in due course.
Concerns about the process were raised by Bombardier Transportation President Australia Wendy McMillan before the contract was awarded to Keolis Downer last week. Bombardier Transportation was part of the Adelaide Next consortium bid, which also included Deutsche Bahn, and John Holland.
In an email to a State Government appointed probity officer, Ken Patterson, Ms McMillan asked for “a full and independent probity investigation into the bid process, including the matters raised in the media reports, and provide a report to all bidders as to the integrity of the bid process”.
Last month The Advertiser revealed Keolis Downer was considered the frontrunner for the contract and unsuccessful bidders had been promised a $1 million loser payment to stay in the race.
In one email Ms McMillan raised concerns that the State Government was having discussions with Keolis Downer about the process – and largely overlooking Adelaide Next.
“To date, Bombardier Transportation has received negligible questions in relation to any aspects of its submission,” it said.
“In our experience of competitive tenders, this is highly unusual.”
Ms McMillan also said Adelaide Next had been told “It’s up to you” when it asked whether it should continue in its bid after hearing of negotiations with Keolis Downer.
Opposition transport spokesman Tom Koutsantonis today restated Labor’s commitment to tear up the public transport contract.
“This contract stinks, the process stinks, the proponents involved in the process thinks it stinks and now we are seeing in black and white that people involved in it thought there were issues,” he said.
The Advertiser did not receive the correspondence from the company or Mr Patterson.
A spokesman for the company said Bombardier was aware of the communications and would “continue to comply with all probity and confidentiality obligations”.
In his correspondence Mr Patterson stressed leaks to the media were being investigated.
A Department of Transport and Infrastructure spokesman said the probity officer review found “the disclosure of this information and concluded that it did not affect the outcome of the procurement process”.
He said the department would prepare a report on the process and the contract, to be provided to parliament and the Auditor-General.
“The Auditor-General’s report will be made public by the Auditor-General in due course,” he said.