Department ignored rules on tenders

hayley.sorensen@news.com.au TERRITORY Families breached its own procurement rules in every tender examined during an investigation by the Northern Territory’s AuditorGeneral.

Auditor-General Julie Crisp examined six of the 19 tenders awarded by the department in the second half of 2018 and identified widespread problems with procurement processes. Breaches were found in each of the tenders examined during the investigation.

In one transaction reviewed, a panel assessment recommendation had been completed and approved after the contract had already been awarded.

The investigation also found members of contract assessment panels hadn’t completed compulsory training in three of the tenders examined.

Territory Families is expected to award contracts worth $535 million this year.

The Auditor-General’s review found that rules which require a minimum 30 per cent weighting for local content and 30 per cent maximum weighting for price were repeatedly ignored.

Conflict of interest declarations were performed incorrectly in at least two instances. In a third transaction, a conflict of interest declaration form was not provided.

Other breaches identified in the review include Territory Families contracts which were lodged with the department’s internal system with estimated contract values “significantly less” than the value eventually awarded.

The report also found procurement process guidance provided to Territory Families staff through the agency’s own internal website was incorrect.

According to Territory Families’ own register of instances of procurement noncompliance, there were 118 breaches of procurement rules identified in the seven months to the end of January, most of which related to the absence of purchase orders or a lack of proper approval for purchases.

Ramifications include the cancellation of corporate credit cards for those responsible for the breaches.