Ombudsmen backs LNP business
Questions have been asked about a small business ombudsman’s awarding of contracts to a Liberal-linked firm without tender.
The office of the Australian small business ombudsman, Kate Carnell (a former Liberal leader in the ACT) has over the past year awarded Agenda C, a Sydney-based consultancy, three small contracts for social media-related work with the ombudsman’s office.
Agenda C is run by former Liberal party advisers and candidates.
Its managing campaign director, Carrington Brigham, was in the federal Liberal party digital strategy team on Tony Abbott’s election campaign in 2013, and worked with the Liberal-aligned firm Crosby Textor on the “Strong Choices” ad campaign for the LNP former Queensland premier Campbell Newman.
Agenda C’s campaign account manager, Jacqui Munro, was the Liberal candidate for Sydney at the last election, and previously worked for then New South Wales treasurer Gladys Berejiklian and City of Sydney councillor Dr Kerryn Phelps.
Agenda C’s managing strategy director, Parnell Palme McGuinness, was the editor for the Liberal party’s Fair Go website.
The contracts were worth $79,840, $79,922, and $31,989, meaning they each fall below the procurement threshold of $80,000.
There is no suggestion that Agenda C or its staff have done anything improper or are not qualified for the work.
The ombudsman says Agenda C secured the contracts because it is a small business and the ombudsman supports small businesses.
Previous audit reports have found that relatively high numbers of contracts are awarded just below the $80,000 threshold.
The Grattan Institute says some firms split contracts to avoid the threshold, which is against the procurement rules.
“The Department of Finance should use the ANAO report as a basis for more detailed investigation of whether there is systematic flouting of the CPRs,” the institute said in its 2018 submission to a parliamentary inquiry.
“The department should conduct such a review annually, using the types of screens for potential non-compliance set out by the ANAO.”