Dial Before You Dig
Lessons in Avoiding Hidden Probity Hazards
A simple four-word phrase neatly summarises the essential due diligence excavation contractors must perform before breaking ground: dial before you dig. There’s a world of difference between the risk of rupturing a pipe or severing a cable and the probity risks facing a government procurement exercise, but the analogy holds: fail to perform the necessary due diligence and disaster may follow.
Last month SMH broke the news that Sydney businessman Mozammil Bhojani was awarded an offshore detention contract worth over $9 million in 2018 by the Department of Home Affairs while under investigation for bribing foreign officials. Bhojani was subsequently convicted of bribery offences in August 2020 after pleading guilty to the charges.
SMH reports that Peter Dutton, then Minister for Home Affairs, had been briefed on the investigation by the AFP a month before the contract was signed, though the former minister denies having had anything to do with the awarding of the contract.
For the most part, government entities need to rely on information in the public domain when conducting due diligence research; a briefing from an investigative agency on a prospective contractor is undoubtedly a rare occurrence.
But there is a wealth of public information available which, provided its limitations are well understood, can provide critical insights into potential hidden hazards, in relation to individuals or companies seeking to do business with governments. This includes reports and findings from anti-corruption agencies, courts and tribunals, commissions of inquiry, corporate regulators and, of course, the media.
There is no doubt SMH’s revelations emphatically underscore the importance of proactively conducting rigorous due diligence research before final decisions are made and contracts awarded.
Noble Shore’s consultants have extensive experience in navigating official and non-official information sources and interpreting search results. We can help government agencies identify where the hazards are before, as it were, they break ground.
Contact us today on 1300 822 694 or at contactus@nobleshore.com.au to obtain your due diligence report.
