Cleaning Contract Allegations Sent To Ombudsman

The Age

Wednesday May 16, 2007

Michael Bachelard, Age Investigative Unit

THE cleaning contractor who missed out on a lucrative public housing contract to a friend of Labor minister Theo Theophanous has raised serious allegations about the conduct of the tender.

Michael Eskander, the managing director of Eski Cleaning Services, has asked for an ombudsman's investigation of the tender after revelations in The Age this week that Mr Theophanous persistently lobbied then housing minister Candy Broad on behalf of his friend, George Stamas.

Mr Eskander's letter to the ombudsman says that, before he was formally notified that his company had lost the $12 million contract, an Office of Housing official was introducing the winning bidder's area manager as the new contractor.

He also complained that, at his company's post-tender interview with Office of Housing representatives, the explanation they received was "inconsistent with the facts and substance of our tender". "Their demeanour was one of confusion and embarrassment and left us with the impression that they were uncomfortable with the task they were given to do.

"I was greatly disturbed to read the (Age) article, and in particular the reference to political interference, as this then made sense of why we felt that our tender did not receive due attention.

"We find the entire tender process unsatisfactory and respectfully request that a full investigation be carried out. We further request that the contract not be transferred to GJ&K until all questions over the tender process be answered."

The transfer is due on July 1. Eski had held the contract for 12 years. The Office of Housing has consistently defended the tender, saying it was reviewed and overseen by a probity adviser.

In a letter to The Age, Mr Theophanous said: "I reject the accusations . . . which suggest I somehow interfered in a government department's independent tendering process. As a minister, I meet with business people all the time - it is a necessary part of my doing my job."

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