Australian Defence accused of covering up $90m contract row

18 Nov 2010

Source: The Age
The Australian Defence force has been accused of ordering an 'expensive whitewash' to cover up allegations of impropriety in the awarding of a $90 million contract for transporting Australian troops overseas. The accusation was made after it emerged that auditors hired by Defence to probe the contract were unable to interview any of the tenderers or the official at the centre of the row.

Auditors at Deloitte were paid $600,000 to review the contract to transport troops to the Middle East after unsuccessful bidders complained that a Defence official, David Charlton, had passed information to the preferred tenderer, aviation charter company Adagold.

Senator Johnston yesterday called the Deloitte audit an 'incredibly expensive whitewash'. He said the firm had run 'what should have been a very important inquiry into a number of very serious allegations … effectively with one hand tied behind their back'.

'For close to $100,000 a day the auditor barely looked under his mouse pad. The result is as predictable as night follows day. Of course it didn't find any evidence of mismanagement or corruption because they weren't allowed to look for it, and the taxpayers who paid for this audit have a right to know why.'

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