A Corruption and Crime Commission report on the Water Corporation’s procurement activities has found its problems revolved around a misguided project director and a series of inexperienced project managers.
The Commission’s report, Review of an Investigation by Water Corporation into Serious Misconduct Allegations in Procurement dealt with the purchase of water meter testing rigs for a total contract cost of around $650,000.
“Ultimately, the equipment was found to be completely defective and the Water Corporation is now considering selling it for scrap. It has been valued at about $28,000,” the report said.
“The Water Corporation estimates that the project and its subsequent investigations cost more than a million dollars.”
The Commission said its report documented how the procurement process for the rigs went awry when the Water Corporation employee responsible for the process engaged a neighbour and a friend to help procure the rigs from China.
“Proper procurement processes weren’t followed; there were ‘unorthodox’ irregularities in the tender process; the personal relationship between the project director and his neighbour was well-known by some but not flagged as a conflict of interest,” the Commission alleged.
“Early concerns identified in the quality of the rigs weren’t acted upon; and contract payments were made before milestones were achieved,” it claimed.
The Commission said that despite the mistakes, the Commission did not form a view of serious misconduct against the project director or anyone else involved.
“This is consistent with a WA Police Force investigation which did not result in criminal charges,” it said.
Meanwhile, Minister for Water, Dave Kelly announced a further 30 roles in-house at the Water Corporation following the successful transfer last year of 420 employees from the private sector.
“In phase one, half the team responsible for reading water meters within the Perth metropolitan area will be insourced in 2021 taking up new, full-time permanent positions, as Water Corporation upskills the roles to prepare for the transition to digital metering,” Mr Kelly said.
“The current outsourced model relies upon casual staff being paid on a per-meter-read basis. The new, insourced model will provide greater security of employment, address safety concerns and allow the corporation to attract suitably skilled staff as required to digital metering.”
Insourcing of meter reader and associated administration roles are expected to begin in March.
The Corruption and Crime Commission’s 20-page report can be accessed at this PS News link.
