Kate Lundy (ACT, Australian Labor Party, Shadow Minister for Local Government) Share this | Link to this | Hansard source

My question is to Senator Ellison, the Minister for Human Services. Is the minister aware that the managing director of Health Services Australia, Mr Walter Kmet, has again corrected his evidence to a recent Senate estimates hearing? Doesn’t Mr Kmet’s latest correction completely contradict his earlier assurances to the Senate? Can the minister now confirm that Mr Kmet privately alerted a former colleague, and no-one else, of the opportunity to apply for a $3.75 million worth of contracts? Mr Kmet personally approved those contracts without any public tender or competing bids and, in awarding those contracts, Mr Kmet did not disclose his former working relationship with the provider. Doesn’t the seriousness of this evidence justify referral of this matter to the AFP for proper investigation?

Chris Ellison (WA, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

I am aware that Mr Kmet has supplied a supplementary statement. That is part of the subject of the inquiry which is being undertaken by the Secretary of the Department of Human Services, Ms Williams. She is conducting that inquiry, as I advised the Senate the other day. I await that report, which I hope I will have very soon. I anticipate that. I am not going to pre-empt any outcome; I think it would be unwise to pre-empt that. That is a proper course of action to take in view of the circumstances. I took questions on notice, and I have done that. I have the matter being dealt with by the secretary of the department.

Kate Lundy (ACT, Australian Labor Party, Shadow Minister for Local Government) Share this | Link to this | Hansard source

I have a supplementary question. Was the minister aware that Dr Peter Macintosh, who was awarded the $3.75 million worth of contracts, and Mr Kmet worked together at the company MIA Group? Weren’t both Mr Kmet and Dr Macintosh executives in this company when it was subjected to an investigation over the Michael Wooldridge scan scam, involving taxpayer funded MRI machines? Will the minister suspend the contract until a proper AFP investigation has been concluded?

Chris Ellison (WA, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

The question of HSA contracts is for the board and the CEO to enter into. I am not about to suspend or attempt to interfere in any process until I have the report from the secretary. To do so wrongly could expose the Commonwealth. To take inappropriate action whereby I could lay the Commonwealth open to civil action would be irresponsible. I am awaiting the report of the secretary, and I will consider that when I receive it.