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Businessman Chris Vaile is putting the pressure on government to come
up with a review of the appointment of consultants and their role in
the current due diligence exercise to purchase a fuel farm.
Vaile, through his lawyer Tim Arnold, has written to the Public
Expenditure Review Committee chair Marie Francis and Director of Audit
Paul Allsworth to “take control of this process and ensure advice is
received from truly independent sources”.
The letter states that it is beyond dispute that these consultants are
compromised by reason of being financially interested in the due
diligence exercise. “Those consultants have made it clear they
intend to be involved in the medium to long term – acting for and on
behalf of government of government in acquisition of infrastructure and
in the future proposed government fuel tender process.
“Obviously, if the process fails due diligence, the sale will not
proceed; if the process passes due diligence, the sale will proceed. On
what basis, therefore, could PERCA or Audit condone the involvement of
these consultants in this exercise, given their clear conflict of
interest? “Due diligence should already have thrown up a number
of issues that have significant implications for the overall viability
of government’s plans, and it should be deeply concerning that
government will be moving forward in this matter on the basis of the
advice of these individuals.
The three consultants are from Economic and Energy Analysis Pty Ltd of
Australia. Arnold writes that his client, Triad Pacific Petroleum Ltd,
has instructed him to forward this letter both to the chair of PERCA
and the Director of Audit “with a view to immediate oversight and
review of the appointment of the consultants, and crucially – and this
is extremely time sensitive – their role in the current due diligence
exercise and the integrity and robustness of that due diligence
exercise itself”.
“In conclusion, it should be noted all current indications are that
government’s financial model will not be viable without changes to the
law effectively removing all other competition – this has obvious
constitutional implications. “One assumes both PERCA and the audit
office will have views as to the appropriateness of such a course of
action,” concludes the letter.
In a response to questions, Allsworth says that PERC is undertaking
preliminary inquiries into the matter and that his office will assist
in gathering more information.
“PERC and the Audit Office have the appropriate powers within the PERCA
Act, to review the process and ask questions and seek documents, from
MFEM and the consultants appointed. “Please note, these are not
separate reviews by PERC and the Audit Office, but a joint and
coordinated review,” concluded Allsworth.
PetrolWorld 211208
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