Christine Milne (Tasmania, Australian Greens) Share this | Hansard source

asked the Minister representing the Minister for Defence, upon notice, on 19 October 2012:

With reference to the Defence Integrated Distribution System contract that outsourced the management of Defence warehouses:

(1) Is the department acting on the commercial advice of Deloitte and the legal advice of the Australian Government Solicitor, that the TTDL consortium is completely liable for the $4 million in missing stock and the department is entitled to enforce its contractual rights to have these losses refunded; if not:

(a) why not; and

(b) can an explanation be provided as to why the department considers it is not in breach of the Financial Management and Accountability Act 1997 by refusing to enforce its contractual rights to reclaim the $4 million.

(2) Can a complete inventory of all the missing stock be provided?

(3) Are reports that the clauses relating to the liabilities of TTDL have been amended to provide for 'further discussions' correct; if so, what have been the outcomes of the further discussions between the parties?

(4) In awarding the tender to TTDL, what processes were in place to guard against conflicts of interest, given that the former Minister who launched the tender, Mr Peter Reith, worked as a consultant to the firm when the tender was awarded?