Defence Denies Misconduct By Investigated Official Doubts Linger Over $5m In Contracts
The Age
Tuesday August 5, 2008
TWO federal departments are divided over whether a top Defence official - on paid leave for 18 months while under investigation for alleged misconduct - has also worked as a migration agent.
The Defence Department, which is mired in a multimillion-dollar contracting scandal involving Defence Materiel Organisation general counsel Gillian Marks, says it has no evidence any of her migration companies had won visas for clients since her employment as a public servant in November 2004.But Defence's claims have been contradicted by the Department of Immigration and Citizenship, which says it awarded 16 visas to US citizens sponsored by one of Ms Marks' migration companies, Global Young Leaders Australia, in 2004-05 and 2005-06. An Immigration spokesman told The Age that a "sponsoring organisation" such as Global Young Leaders Australia had to provide programs offering cultural enrichment and community benefit. Such programs are usually associated with the work of migration agents.Despite the Immigration Department's confirmation of visas, Defence maintains it has "no reason to believe Ms Marks was a migration agent between November 2004 and October 2007".In May, The Age revealed Ms Marks had last October registered as a migration agent while on paid leave from the DMO. Defence will not comment on whether Ms Marks informed her superiors of this move, as required under Defence regulations governing outside work.The inter-departmental division over Ms Marks - a former Liberal Party official involved in shadow treasurer Malcolm Turnbull's preselection - comes amid an Attorney-General's investigation into DMO breaches of the Commonwealth's Legal Services Directions.The directions, issued by the Attorney-General, are legally binding guidelines that include a requirement for competitive tendering processes.Last year, The Age revealed Ms Marks had gone on indefinite sick leave while Defence investigated the awarding of $5 million in contracts by Ms Marks to law firms she either once worked for or had close links to. Most of the contracts were issued without competitive tender processes.In response to questions from The Age, a Defence spokeswoman said the DMO first advised the Attorney-General's Department of possible breaches to the legal services directions in October 2006. Letters were sent confirming the breaches in July and September last year.The spokeswoman said the breaches related to three contracts awarded as part of the DMO's Procurement Improvement Program led by Ms Marks.One of the breaches regarded the payment of counsel fees that exceeded allowed rates. Defence has confirmed this breach involved a $348,000 non-competitive contract given by Ms Marks to the law firm of her former employer, Sydney barrister Malcolm Johns.More than $2.5 million in contracts awarded to two US law firms without competitive tender processes by Ms Marks have also attracted scrutiny. Both firms employed an American lawyer Ms Marks had worked closely with on a controversial Howard government IT outsourcing project in 1997.The controversy over Ms Marks and her long period of paid leave has led to a split in senior Defence ranks, with a number of Defence sources claiming senior department officials are trying to cover up the contracts affair.Defence Minister Joel Fitzgibbon has refused to intervene, but has described his department's handling of the controversy as "appalling".Got a tip? Email investigations@theage.com.auKEY POINTS ? Defence official Gillian Marks is under investigation while on paid leave for 18 months.? Immigration contradicts Defence claims that Ms Marks' companies have not won visas.
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