NSW government to ban dealings with dodgy contractors

Businesses who engage in serious misconduct or abuse of trust could soon be barred from being awarded state government contracts,under planned legislative reform.

Last week,theHerald revealed scaffolding firm Synergy,which had been repeatedly promoted by the scandal-plagued CFMEU,hadcontracts for work on NSW public hospital,public school and the Sydney Metro,despite a catastrophic safety record and alleged links to a bikie boss and other underworld figures.

NSW Finance Minister Courtney Houssos says the government must ensure public money is spent responsibly.

NSW Finance Minister Courtney Houssos says the government must ensure public money is spent responsibly.Dominic Lorrimer

The supplier debarment scheme is currently being devised as part of a range of reforms to the state government’s procurement processes.

Details of the scheme are not yet finalised,and the state government will undertake consultation with industry and other stakeholders to develop the new rules.

However,theHerald understands the government is closely examining the Western Australian debarment scheme,under which the conduct Synergy is alleged to have engaged in would likely have triggered the debarment process.

Examples of misconduct which could disqualify a supplier from doing business with the government could include the company,or one of its directors or senior managers,having engaged in fraudulent or corrupt conduct or failing to comply with taxation laws.

The debarment scheme was recommended by the Independent Commission Against Corruption (ICAC) following its Operation Hector investigation,whichprobed the conduct of certain workers from sharemarket-listed contractor Downer EDI Works.

Operation Hector revealed a culture of complacency and poor corporate governance at Downer in itsinvestigation of allegations bureaucrats from Transport for NSW and Inner West Council dishonestly awarded contracts to various companies,including Downer,for their own advantage.

Finance Minister Courtney Houssos said the debarment scheme would maintain public trust in the way the state government spent taxpayer funds.

“Thousands of hard-working,honest suppliers engage with the NSW government every year. This regime will make sure we are not engaging with bad apples,” she said.

The NSW government spends $42 billion on procurement contracts each year.

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Mary Ward is a reporter at The Sun-Herald.

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