Opposition calls for inquiry into state government over lucrative myki contract

Calls are mounting for an “urgent” inquiry into whether a lucrative contract to overhaul Victoria’s public transport system was unfairly awarded to a US-based company.

US-based company Conduent had won the contract to upgrade Victoria’s troubled Myki system. Picture: supplied

The state opposition has called for an “urgent” parliamentary inquiry to probe whether the Andrews government unfairly awarded a lucrative contract to overhaul the state’s lagging public transport ticketing system.

Public Transport Minister Ben Carroll last month announced that US company Conduent had won the contract to upgrade the troubled Myki system, which would include allowing commuters to use their credit cards and mobile phones to touch on.

But one of the losing bidders for the contract, Cubic – which runs Sydney’s Opal ticketing service as well as systems in New York and London, wrote to Premier Daniel Andrews complaining about the tender process.

According to the ABC, who obtained the letter from the company, Cubic claimed government officials had discussions with Conduent after Cubic had made their final submission, which gave that bidder a “significant opportunity to explain and improve its offer”.

Public Transport Minister Ben Carroll last month announced that US company Conduent had won the contract to upgrade the troubled Myki system. Picture: David Crosling

Mr Andrews, who on Tuesday said he hadn’t read the letter but was briefed on it, said he had “no advice” to suggest any issues with the bidding process.

“Politicians don’t sit down and evaluate the bids, independent experts and those who provide advice to government (do), so independent public servants (are) oversighted by a probity auditor,” Mr Andrews said.

“There was a process. The tender was awarded on advice, and beyond that, the Minister for Public Transport is the person to talk to.”

Opposition leader John Pesutto said the contract needed to be suspended until the matter could be examined by a parliamentary inquiry.

“We cannot shy away from the need to investigate flawed processes by the Andrews Labor government,” he said.

“It seems now that there is evidence that the very thing that Victoria was supposed to be securing – a proper genuine tap and go system – is not that at all.

“We’re being sold something well short of what Victorians rightly expect. Systems for public ticketing around the country are far more advanced.”