G.P.O. CONTRACT

Evening Post, Volume CXXVIII, Issue 38, 14 August 1939, Page 7

G.P.O. CONTRACT

FAILURE OF DUTY

NO DISHONESTY

FURTHER ACTION INDICATED

(From "The Post's" Representative.)

SYDNEY, August 3.

The report of the Royal Commission on the letting of a contract for £411,000 for additions to the Sydney General Post Office has resulted in the suspension of two highly-placed officers of the Commonwealth Public Service. .They are Mr. M. W. Mehaffey, Federal Director-General of Works, and Mr. J. Orwin, Federal Director of Works in Sydney. The Commission was appointed fol-< lowing charges in Parliament by Mri Thorby, a former Minister for the Interior, who had dealt with the G.P.O. contract before he left the Cabinet ..hen Mr. Menzies became Prime Minister. The contract was given to H. G. Wittle and Sons with terracotta facing material, although another contract, with sandstone facing, was £2000 lower. Charges were made concerning the influences which resulted in the change from sandstone to terracotta, and inquiry was al^o made into the reason why Mr. Orwin had signed the contract in Sydney after the Cabinet had instructed Mr. Mehaffey that the contract must not be signed. Among the findings of Mr. Justice Maxwell, who conducted the Royal Commission, was that the Cabinet's instructions that the contract was not to be signed did not reach the Works Direcor, Mr. Orwin, until after the signing. "It is clear," Mr. Justice Maxwell said, "that Mr. Mehaffey must be held to have failed in his duty, although I am satisfied that h" honestly believed he had taken such steps as would ensure compliance with the instructions." Although he expressed the opinion that no criticism could be levelled at Mr. Orwin for signing the contract, Mr. Justice Maxwell said that, because of his part in an interview in Sydney on March 15 with a representative of Wunderlich's, the makers of terracotta, Mr. Orwin could not escape severe criticism. "I am definitely of the opinion that this interview was improper," he added. CHARGES TO BE LAID. The Prime Minister, Mr. Menzies, said: "It is very gratifying to know that there is no finding of dishonesty of any kind, and that the Judge has found it possible to speak highly of those concerned in the public administration. The Cabinet will naturally consider the report in detail, but there appears to be no reason existing why the successful tenderer should not now proceed with the work of constructing the new-building." The Cabinet found that Messrs. Mehaffey and Orwin could be dealt with only by the head of their Department. It referred the matter to the Secretary of the Works Department, Mr. Carrodus, who later informed the Cabinet that he had suspended Messrs. Mehaffey and Orwin. They have been charged under the Public Service Act, but in accordance with the provisions of that Act, the nature of the charges has not been disclosed. The Public Service Board will immediately appoint a committee of three senior officers to investigate the charges. If the committee of inquiry supports the charges, the Public Service Board will recommend to the Ministry what it considers suitable punishment. The Ministry has the power to confirm or reject the recommendation. Penalties for offences under the Public Service Act" range from dismissal or reduction in status down to minor disciplinary action. If the charges are found to be disproved the officers concerned will automatically be reinstated. Notwithstanding the findings of the Commission, the board of inquiry need not necessarily reach the same conclusions about the part both or either of the officers played in the signing of the contract. Important changes in the Works Branch administration will follow the report of the Royal Commission. It is considered likely that there will be a drastic reorganisation of the system, particularly in the letting of contracts. It is probable in future that the signing of major contracts will be a function for the Director-General of Works. There will be additional safeguards for the immediate automatic dispatch of instuctions so that no ambiguity may arise. Works directors from all States have been summoned to Canberra to receive fresh instructions. Only H. G. Whittle and Sons Pty. are likely to be reimbursed for legal costs before the Royal Commission on the Sydney G.P.O. contract. If is estimated that fees of counsel for all parties will amount to £ 10,000. The Commonwealth Government will resist any other claims for costs other than Whittle's.