Jeannie Ferris (SA, Liberal Party) Share this | Hansard source

There are a couple of points that need to be made in relation to those comments concerning this report. The first is that the report found no evidence of facilitation payments or any other illegality. As well, the Auditor-General noted that a separate investigation that was undertaken by the Australian Federal Police concluded that there was no evidence to support a charge of criminal conduct in any case. Most importantly, the report concluded that Airservices Australia employees, in acting on the authority of Solomon Islands government ministers and officials, did depart from sound contract management in making some payments under the contract.

Airservices Australia accepts these findings by the Auditor-General and has committed to a swift response to them. In fact, Airservices has already undertaken a range of reforms to its processes. The department has been asked to review the Auditor-General’s findings and to report on actions that might be taken to further strengthen the guidelines issued to Airservices Australia in relation to its overseas service contracts. Airservices Australia has already taken action to carry out some of these recommendations, including a thorough strengthening of corporate governance procedures in relation to offshore contracts through a revised contract management procedure that clearly segregates the duties of the contract manager and the contract administrator, requires contracts or variations to contracts to be endorsed by the general counsel and approved by the relevant general manage and/or CEO, incorporates a senior management review and oversight process, requires monthly reconciliation of bank accounts and requires monthly financial reporting to management by the relevant finance officer independent of the contract manager.

Notwithstanding the actions already taken by Airservices, the minister will be writing to the Airservices board asking them to review the Auditor-General’s report very carefully and to provide a written report covering all aspects of the findings. The report is expected to address not only the specific contract but also the implications for the administration of other Airservices contracts and that strategies be put in place to ensure similar shortcomings cannot occur in the future. Airservices Australia accepts the findings by the Auditor-General and has committed to a swift response to them and, as I said, has already undertaken a range of reforms to its processes.

Airservices Australia’s safety work is not confined to Australia. Significant safety issues in the Asia-Pacific region, including in the Solomon Islands, PNG and Indonesia, are being addressed through assistance from Airservices Australia. This assistance is being provided through standardisation of procedures, targeted training programs, the development of equipment and maintenance and radar realignment programs. The assistance is a very important issue for Australia, because over 80 per cent of international aircraft flying to and from Australia pass through Indonesian airspace.

Airservices Australia advised Minister Anderson’s office of the outcome of an internal audit of the Solomons Island contract in September 2003. This audit raised questions about whether some payments made by Airservices were in accordance with the contract. The minister’s office requested that RAMSI be informed. Internal and external investigations were conducted and they identified that Airservices Australia and its staff acted in good faith in administering this contract. The Airservices Australia chief executive informed Minister Truss in March 2006 of a Solomons Island government auditor-general inquiry into civil aviation in the Solomon Islands, which included the financial management of that Airservices contract.

I will conclude my remarks by saying again that this investigation found no evidence of facilitation payments or any other illegality. Links by comment by my colleague Senator O’Brien to wheat export contracts are unfortunate. In addition, the Auditor-General noted that a separate investigation by the Australian Federal Police concluded that there was no evidence to support a charge of criminal conduct. I seek leave to continue my remarks later.

Leave granted; debate adjourned.