Suppressed auditor common’s report warned $1.3bn Australian defence deal not worth for cash | Australian politics

A suppressed auditor common’s report warned that the federal government’s $1.3bn deal to purchase a brand new fight car fleet was not worth for cash, newly launched materials reveals.

In 2018, the legal professional common, Christian Porter, deployed hardly ever used powers to suppress elements of an auditor general’s report that criticised the acquisition of a brand new fight car fleet, the Hawkei, manufactured by multinational arms large Thales.

The Guardian revealed in 2018 that, within the redacted elements of the report, the auditor common had recommended the federal government might have spent half the quantity if it had chosen to hitch the US joint mild tactical car (JLTV) program, as a substitute of buying the Hawkei.

Thales was livid on the auditor’s discovering, believing it might threaten its capability to market the Hawkei overseas. The arms producer lobbied Porter to intervene and take away references evaluating the JLTV and the Hawkei in January 2018.

Porter did so through the use of largely unprecedented powers that enable him to suppress audit studies, together with on grounds of nationwide safety and business prejudice.

Within the nearly three years since, the impartial senator Rex Patrick has used freedom of knowledge legal guidelines in an try and safe the complete unredacted report. He won his protracted battle in the administrative appeals tribunal last month, and a much less redacted model of the report has now been released.

The newly unredacted findings largely replicate what was revealed by the Guardian in 2018: that the auditor discovered Australia might have saved cash by going with the JLTV program as a substitute of the Hawkei.

One suppressed a part of the report discovered that:

“Defence has not clearly demonstrated that the acquisition gives worth for cash, because it didn’t undertake sturdy benchmarking within the context of a sole supply procurement.”

The redacted elements of the report element a value comparability between the JLTV and the Hawkei. One half finds the JLTV would have been considerably cheaper than beforehand recommended to the federal government in 2015 recommendation.

“Though just one component of assessing total worth for cash, the ANAO’s high-level cost-comparison signifies that the price of the Hawkei functionality exceeds the 23 per cent worth distinction suggested to the federal government in 2015,” one beforehand redacted a part of the report mentioned.

Thales has at all times argued the associated fee comparability is deeply flawed and unfair, as a result of it seeks to match two vastly totally different autos and fails to consider the advantages of native manufacturing introduced by the Hawkei.

The federal government has continued to withstand the publication of the unredacted report as a result of it fears it might hamper Thales’ efforts to export the Hawkei overseas.

The case prompted criticism in 2018 as a result of it was extensively seen as a risk to the independence of the auditor common’s workplace, one of many key accountability our bodies within the nation.

Patrick mentioned the federal government should now clarify why it thought it was acceptable to redact the report on nationwide safety grounds.

“I’m simply astounded at what the legal professional thought was safety delicate,” he mentioned on Saturday.

“I’ve written to the legal professional common insisting he make a proof to the parliament as to how he utterly misjudged nationwide safety and issued a certificates beneath the auditor common’s act to censor the auditor’s findings from the parliament.”

A spokesman for the appearing legal professional common Peter Dutton mentioned the choice to suppress elements of the report was made “following cautious consideration”.

“Balancing the content material of the report with the required s.37 safety, defence and worldwide relations points and the problems referring to the business pursuits of related events was the topic of a radical and thought of course of performed strictly in accordance with the act,” the spokesman mentioned.

“You will need to notice that the related auditor common report is, and has been, publicly out there since September 2018, with solely a small quantity of specific data of the report redacted on these grounds.”