Salesforce held multiple meetings with former Government Services and NDIS minister Stuart Robert and Synergy 360, the controversial consulting firm linked to him in the lead up to a 2019 tender that has since netted the US software giant $100 million.
The company disclosed the meetings in evidence to current inquiry of the Parliament’s Joint Committee of Public Accounts and Audit into procurement at Services Australia and the National Disability Insurance Agency (NDIA). The company also described the nature of its links Synergy 360, which is run by Mr Robert’s friend and Canberra insider David Milo.
On Monday at a public hearing in Canberra, Salesforce executives were evasive when pressed for details on the meetings, while the committee chair aired an allegation that Mr Robert had a “direct influence” on the contract being awarded to Salesforce.
When asked which of the four executives fronting the hearing on Monday had been present at the meetings with Mr Robert, Salesforce vice-president Sassoon Grigorian asked to take the question on notice, but was denied by Public Accounts and Audit chair Julian Hill.
Two of the Salesforce executives sitting at the table and giving evidence to the committee had been present at the meetings.
Salesforce has told the inquiry it met with Mr Robert in meetings with Synergy 360, three times – twice in June 2019 and one meeting in September 2020.
Mr Robert had been returned to the ministry by then-Prime Minister Scott Morrison as Minister for the NDIS and Government Services the month prior to the first meeting in May 2019.
This was the same month Mr Milo approached Salesforce, according to the company, offering his services. Salesforce entered an agreement with Synergy 360, paying it monthly retainers over two years until June 2021 that totalled more than $214,000.
“We did engage Synergy 360, primarily for strategic business advice,” Mr Grigorian said.
“We understand he (David Milo) had Canberra insights, and he may have had relations in Canberra. At the time, we weren’t aware of the extent or the nature of those relationships.”
Present at the initial meeting was Salesforce’s federal government lead Brad Cook, who also fronted Monday’s hearing.
“The nature of the discussion [with Mr Robert and Synergy 360] was around government transformation and digital services, and how to bring that to life in the public service, as was his responsibility as the Minister for Government Services.”
Mr Cook said to “the best of his knowledge” the upcoming procurement was not discussed at the meeting with Mr Robert.
Late last year it was revealed that Mr Robert was secretly providing advice to Synergy 360 as it helped multiple multinational tech firms to land government work.
The company, which has not registered as a lobbyist and was also run by Mr Robert’s political fundraiser who has since left the country, was being paid retainers and success fees. The committee has heard evidence Mr Robert stood to gain financially from the success of Synergy 360. The former minister, who unexpectedly retired earlier this year, has previously denied any wrongdoing.
After multiple meetings with Mr Robert and Synergy 360, Salesforce tendered for a software contract with the NDIA that went to market in November 2019.
Salesforce won the work under an initial three year, $27 million contract that, as revealed by InnovationAus.com, has since expanded to more than $100 million, despite supposed “price certainty” offered by Salesforce.
On Monday, committee chair Mr Hill said it was “curious” and highly unusual that price had not been given any weighting in the tender evaluation, while airing an explosive allegation.
“It’s been put to me by a former staff member from the NDIA that… the agreement [with] Salesforce came at the direct influence and direction of the minister, Mr Stuart Robert.”
“… I wouldn’t have said it if I hadn’t concluded that the former employee is not mad,” Mr Hill said.
“So I’ve taken it at face value that that was an impression – right or wrong – which was floating around the NDIA, that the former minister wanted you to get the contract.
“Do you have any reason or understanding as to why that might be the case?” he asked the Salesforce executives.
Mr Grigorian responded that the matter was between the former NDIA employee and the former minister, and the nature of the allegation meant the National Anti Corruption Commission (NACC) is the “appropriate body” to examine it.
The NACC is already considering the committee’s earlier referral of Synergy 360 linked procurements.
“My understanding is the nature of that allegation should be referred to the NACC, which I understand this committee has referred these issues to the NACC. That is the appropriate body.”
Salesforce attributes the large increase in the cost of its contract with the NDIA to changes in scope, including the later addition of claims management, and the number of user licenses going from 5000 to 12,500.
The company said its tender for the work had been done by the book and the project had been a success.
Salesforce executives also took on notice the committee chair’s question on whether they had spoken with any federal opposition members “in preparation for this hearing”.
“I have to take that question on notice, I can’t recall,” Mr Grigorian said.
Correction: An earlier version of this article incorrectly described the committee’s inquiry as being into probity and ethics in the public service. It is an inquiry into procurement at Services Australia and the National Disability Insurance Agency.
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