$4.3m NT Health Ernst and Young contract referred to ICAC

The CLP has referred a $4.3m NT Health contract to the Independent Commissioner Against Corruption.

THE CLP has referred a $4.3m NT Health contract to the Independent Commissioner Against Corruption.

Opposition health spokesman Bill Yan said the Territory’s Auditor General found the contract, awarded to Ernst and young, was against procurement rules.

“This consultancy was originally commissioned to review the Department of Health’s Covid-19 response and quietly morphed into recommendations to guide an extensive internal restructure of NT Health; which has seen a return to the old governance of silos, and stripped regions of local decision-making," he said.

“Back in May, the Opposition called on the Health Minister to make this secret report public – and reveal the price tag.

“In response to Opposition questions submitted through a formal Parliamentary process, Minister Fyles claimed that the tender was not required to be released publicly because it was approved under an emergency procurement exemption process and instead was awarded through ‘direct contracting’.

“It’s now been revealed that the consultancy, which started out with a $700,000 price tag, has actually cost taxpayers $4.3m – and that the tender was not approved under the emergency procurement exemption process.

Mr Yan said the Auditor General also found:

• The Agency did not comply (or the documents provided were unclear in relation to compliance) with the Procurement Rules – including 42 of the required criteria;
• The Project Specific Procurement Plan does not refer to the procurement being undertaken under the exemption as claimed by the Health Minister;
• Criteria for direct contracting was not met by the Agency;
• The significant number of high value variations is indicative that the scope of works was not well considered nor well defined at the outset

“Territory taxpayers deserve to know how their money is being spent on, and have every right to be outraged that the Auditor General has found Procurement rules were breached throughout this process,” Mr Yan said.

Ms Fyles said: I’m aware of this report and have sought advice from relevant government agencies to ensure the integrity of procurement processes is maintained.

“Taxpayers need to know that their funds are treated with respect.

“The Territory Labor Government established the ICAC and I am confident in their independent processes.”

Follow @PhillippaButt