Minister Cleared Of Lobbying For Contracts

The Age

Friday October 12, 2007

By Paul Austin, State Political Editor

MAJOR Projects Minister Theo Theophanous has been cleared of accusations he tried to influence a ministerial colleague over a tender for multimillion-dollar contracts.

The Ombudsman, George Brouwer, has found no evidence that Mr Theophanous or anyone else attempted to improperly influence then housing minister Candy Broad over the awarding of contracts to cleaning company GJK Facility Services to clean high-risk public housing towers.

The Ombudsman investigated after The Age reported in May that Mr Theophanous had "persistently lobbied" Ms Broad on behalf of GJK, which is owned by his friend, businessman George Stamas.

In a 66-page report tabled in Parliament yesterday, Mr Brouwer said his investigators had established that Ms Broad met Mr Stamas in December 2005 following an approach to her by Mr Theophanous.

But Ms Broad told the Ombudsman she was not subjected to any "lobbying" or attempted influence regarding Mr Stamas or GJK contracts.

To the best of Ms Broad's recollection, Mr Theophanous had told her Mr Stamas was a friend, was involved in ALP fund-raising, and wanted to speak to her about the employment of public housing tenants.

Ms Broad said she would not have agreed to the meeting if she knew he was going to raise the issue of contracts.

She said she "sent Mr Stamas on his way" when he raised his desire to have an existing contract extended, telling him he should speak to the independent Office of Housing.

Ms Broad, who lost her ministerial portfolio after the November election, said she told Mr Theophanous the meeting had taken place, but had no subsequent conversations with him about it.

The Ombudsman said there was no evidence "to support the allegation that Minister Theophanous attempted to influence Ms Broad on behalf of Mr Stamas in this respect".

Nor was there any "improper influence or 'lobbying' of government officials involved in the tender evaluation process".

Mr Theophanous told the Ombudsman he had not approached Ms Broad or anyone else in support of any tender lodged by Mr Stamas.

Mr Brouwer reported that his investigators had interviewed the director and other officials from the Office of Housing. "Each stated that he had not been subjected to any attempt to influence the outcome of the tender evaluation process."

Mr Theophanous told Parliament yesterday that the Ombudsman's report "completely exonerates me and former minister Broad and brings into serious question the reporting undertaken by . . . The Age".

© 2007 The Age

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