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| Sandra Kanck Deputy Leader Australian Democrats Member of the Legislative Council |
News Release |
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| Sandra Kanck Deputy Leader Australian Democrats Member of the Legislative Council |
News Release |
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Tuesday 28th November 2000
35 BLACK MARKS ON THE STATE GOVERNMENT’S PRIVATISATION RECORD
The Auditor-General’s "Supplementary Report: Electricity Businesses Disposal Process in South Australia: Engagement of Advisers: Some Audit Observations" is a damning indictment of the State Government’s bumbling handling of the privatisation of the state’s electricity utilities, say the Australian Democrats.
Amongst the damming revelations is the failure of the Electricity Reform and Sales Unit (ERSU) to enforce the terms of the contract resulted "in fees paid to the Lead Advisers being greater than they may have otherwise been."
"This is Auditor-General-speak for yet another waste of taxpayers money by an inept Government," says Sandra Kanck, Democrats Deputy Leader.
"Under the Westminster system the Treasurer, as the Minister in charge of the privatisation process, must bear responsibility for taxpayers being exposed to potential additional costs.
"Incredibily the Lead Advisers were not required to provide an indemnity in favour of the government for liability arising from their performance. The failure to insist on this fundamental requirement of the contract compounds the privatisation fiasco.
"The fact that in June this year the State Government was potentially exposed to a multimillion dollar action as a result of a contractual error by one of the consulting teams exposed the folly of the omission of an indemnity clause.
"The Auditor-General makes a staggering 35 recommendations as to how the process could have been improved. Remember this is just in respect of the engagement of the consultants.
"From the moment the State Government deceived the people of South Australia in the leadup to the last state election the privatisation of our electricity utilities has been like a soap opera."
FOR FURTHER INFORMATION: Sandra Kanck
