Thursday, September 19, 2024

NDIA officials failed to declare dinners at luxury restaurants, golf events paid for by US software company

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National Disability Insurance Agency officials were showered with dinners at luxury restaurants and rounds of golf at exclusive clubs by a US-based software company as its contract with the government agency expanded.

Evidence to a parliamentary committee shows NDIA officials did not declare thousands of dollars worth of gifts paid for by Salesforce, despite being required to detail receipts over $100.

Salesforce was originally awarded a three-year contract totalling $27 million in 2020. 

That contract was expanded to be a four-year contract worth at least $100 million, due to scope and cost variations.

Salesforce representatives took NDIA staff to high-end Melbourne restaurants such as Gimlet at Cavendish House, Stokehouse, Vue De Monde, and in January 2023 to the French Brasserie restaurant, for a meal that cost more than $1,100.

The tech company also paid for government officials to play at the National Golf Club on the Mornington Peninsula, and Kingston Heath Golf Club.

As well as expensive meals at restaurants and rounds of golf, NDIA staff accepted drinks, taxi fares, clothing, and golf equipment, according to documents.

Federal Labor MP Julian Hill, who chairs the Joint Committee of Public Accounts and Audit looking into the activity, says Salesforce’s practice is troubling.

“The extent of the undeclared gifts and hospitality raises serious questions that the committee’s final report will address, but it does appear to be inappropriate cultivation of Commonwealth officials,” he said.

The NDIA is the government agency responsible for implementing the NDIS.

Mr Hill has questioned why NDIA officials from the agency failed to disclose the significant, regular and costly hospitality offerings.

“The evidence is a pattern over many years of Salesforce providing extensive hospitality at high-end restaurants, golf days, golf balls, and so on to a number of Commonwealth officials,” he said.

“And yet, we received evidence in a public hearing from the CEO of the NDIA that no gifts were declared under the NDIS gift and hospitality policies on their gift register.

Labor MP Julian Hill has questioned why NDIA officials failed to disclose significant, regular and costly hospitality offerings.(ABC News)

“We’ve made [the NDIA] aware of it. And we understand that it’s being taken seriously.”

The MP says the committee is determined to uncover inappropriate dealings across government departments.

“The message is to all public officials that people need to comply with a gift and declaration policies.”

NDIA officials are required to declare gifts over the value of $100 but during a period of around four years, NDIA staff failed to declare at least 40 gifts from Salesforce greater than this amount.

The documents show Salesforce’s gifts began in 2019 and continued as the company negotiated the contract’s increase in scope and value.

A Joint Committee of Public Accounts and Audit report is expected to hand down a series of tough recommendations, including a broader investigation to see if officials in other government agencies have failed to declare gifts from contractors.

The report is set to be tabled on Monday next week.

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