Sydney Metro in outsource probe
Sydney Metro has been pulled into contractor controversy in NSW.
An inquiry into the use of consulting services by the NSW Government has raised questions about potential conflicts of interest at Sydney Metro.
It has been alleged that several contractors employed by Sydney Metro also serve as directors of consulting firms, leading to concerns about the awarding of contracts.
One notable case involves Barry McGrattan, Sydney Metro's Director of Interface Management, who has held various roles within the agency for nearly a decade.
McGrattan is also the managing director of Bellgrove Advisory, a consulting firm that secured at least 10 contracts with Sydney Metro in the past year.
The inquiry, chaired by Greens MP Abigail Boyd, questioned Sydney Metro's Chief Financial and Commercial Officer Fiona Trussell about the management of this issue.
Trussell maintained that contractors and professional service providers do not have decision-making authority in hiring processes, which remains with government employees.
However, concerns persist regarding the potential misuse of information by contractors for the benefit of their consulting firms.
The inquiry also highlighted other cases, including James Hayward, an acting director at Sydney Metro, earning over $600,000 annually, and Paul Rogers, the sole director of PRO Consultants, which secured contracts worth $13.3 million since August 2021.
Experts argue that such arrangements may lead to conflicts of interest due to access to sensitive information and fail to meet ethical standards.
The NSW Auditor-General has previously expressed concerns about government agencies' use of consultants and the lack of transparency in reporting contractor spending.
As the inquiry continues, so do questions about the procurement and management of consulting services within government agencies, particularly concerning potential conflicts of interest and cost control.
Sydney Metro's decision to allow senior managers to operate private companies involved in recruiting contractors on substantial salaries has come under scrutiny amid concerns about cost overruns on major rail projects.
Reports say that contracts to hire staff for Sydney Metro often exceed $2000 per day.
Such contracts, including those for “professional services contractors”, have allegedly been awarded under “limited” tender conditions, where the agency directly approaches suppliers for services.
Allowing companies with directors in senior roles at Sydney Metro to provide staff has raised concerns about conflicts of interest due to their access to sensitive information.
Two senior Sydney Metro managers' companies have collectively secured $20 million worth of contracts since 2021.
More than half a dozen companies with directors who held senior roles at Sydney Metro have similarly been awarded contracts to provide staff.