From http://www.news.com.au/breaking-news/national/vic-govt-it-agency-ran-sham-contracts/story-e6frfku9-1226502183791
The body that provides information technology services to the Victorian government ran sham contracting processes underpinned by nepotism, the ombudsman has found.
CenITex, a state owned body established by the former Labor government in 2008, is responsible for providing information, communication and technology services to government.
Acting Ombudsman John Taylor says CenITex awarded work worth up to $4 million to companies and their contractors without a competitive process, including one case where a sham process was run.
"In some instances, nepotism and favouritism influenced procurement and recruitment practices," he said in a report tabled to parliament on Wednesday.
"Often, the companies or contractors were chosen because they were associates or friends of other contractors already working at CenITex."
Mr Taylor said some appointments were made on the basis of fake documentation.
He said in one instance, a CenITex officer misused his position there over several years to approve invoices from a company in which he had a financial stake, while receiving large financial benefits from the company.
"Serious improper conduct did occur," he said.
In another case, former CenITex chief executive Peter Blades provided notional approval to engage contractors up to the value of $995,000 without adequate justification or a competitive process, the acting ombudsman found.
