The Office of Asset Sales and Information Technology Outsourcing (OASITO), which had its IT Outsourcing functions removed after their mishandling of the $5 billion whole-of-government IT Outsourcing Program, spent a staggering $31.681 million on IT contractors and consultants.
In answers to questions on notice from Senator Lundy, OASITO confirmed that almost $32 million was outlaid on IT consultants and contractors up until 31 December 2000.
The biggest beneficiaries of the Coalition’s squandering of taxpayers money were the US law firm Shaw Pittman, who were paid an obscene $19.302 million for advice which has been widely criticised.
“The failures of the IT Outsourcing Program, initiated by Finance Minister John Fahey, have been exposed by an Audit Office report, the Humphry Review and the on-going into Senate Finance and Public Administration inquiry,” Senator Lundy said.
“The Humphry Review specifically called for OASITO’s role to be downgraded. It’s no wonder the Minister for Finance used last week’s Budget to change OASITO’s name to OASACS, the Office of Asset Sales and Commercial Support.
“In his Budget reply Kim Beazley pointed out that
Spending on consultants amounted to a staggering one billion dollars over the three years to June 30, 2000. In one year, the Government spent $368 million, an increase of $119 million over the previous year.
“Labor has pledged to cut this profligate spending on consultancies and advertising by $195 million over three years. We will use this money to fund a national fight against cancer, and to ensure all Australians can get medical help outside working hours,” Senator Lundy said.
63/01. Media contact: Simon Tatz on 02 6277 3334 or 0418 488295
