The Department of Finance has "appropriate mitigation strategies" to manage conflicts of interest that may arise in its lucrative property contracts, the minister's office says.
A spokesperson for Katy Gallagher made the comments in response to questions about a conflict of interest declared by Colliers in 2020 while it was working on the Tax Office's Barton office procurement.
Colliers was sub-contracted by the Tax Office in 2020, through Ventia, one of the federal government's three property providers.
But a separate section of its business had advised Doma Group on potential uses for its block at a Barton site, which the Tax Office would go on to secure for its new headquarters in 2022.
Colliers declared the conflict of interest as soon as it became aware in 2020, ACT chief executive Nick Evans told a parliamentary committee on Monday, April 22, 2024.
Mr Evans and Finance officials said the conflict was then managed. Colliers did not represent Doma Group in the procurement process.
In a separate statement, Colliers said it was "confident that it adhered to the highest standards of probity and integrity in discharging its advisory role on the ATO relocation and in its professional dealings with Doma Group".
In its opening statement, Finance outlined that it requires propoerty suppliers to declare conflicts of interest "immediately" and to propose steps to mitigate the risk.
Finance also told the committee of steps it was taking to strengthen its rules, including, requiring all property providers to develop and submit conflict of interest management strategies, and ethical declarations.
All lease contracts with a whole of life cost of more than $30 million must be signed off by the Minister for Finance.
Asked whether Minister Gallagher would direct Finance to change its procurement rules to prevent conflicts of interest, a spokesperson said the department "has contractual and governance arrangements in place to support the Property Services Coordinated Procurement Arrangements".
"These ensure timely notification and appropriate mitigation strategies are implemented to manage conflicts that may arise."
