SYDNEY G.P.O. CONTRACT

Evening Post, Volume CXXVIII, Issue 49, 26 August 1939, Page 7

SYDNEY G.P.O. CONTRACT

OFFICIALS DEMOTED

OUTCOME OF INQUIRY

(Received August 26, noon.)

SYDNEY, This Day,

Acting on the recommendation of the Federal Public Service Board, the Federal Executive Council has decided to remove from their present posts both the Commonwealth Director of Works, Mr. Mehaffey, and the Director of Works in Sydney, Mr. Orwin. Mr. Mehaffey will become assistantgeneral of works and Mr. Orwin will be transferred to the works branch in Canberra. Both will receive a reduced salary.

In June an inquiry was ordered into the signing of the contract for extensions of the Sydney G.P.O. at a cost of £400,000. The Prime Minister announced that an official of the Post Office had signed a contract binding the Government with a firm of contractors despite the instructions on the previous day that no finality should be reached pending an inquiry into the question of whether sandstone should be used instead of terracotta. A Royal Commission was appointed to go into the matter.

The Commission found that the former Minister of Defence. Mr. H. V. C. Thorby, had acted precipitately but otherwise there was no departmental impropriety and no suggestion of dishonesty or corruption. Among the findings was that the instructions issued by Cabinet that the contract was not to be signed did not reach Mr. Orwin until after he had signed the contract, and that Mr. Mehaffey failed in his duty in not giving proper instructions that the contract was not to be signed, but there was no suspicion of bribery or dishonesty of any sort among Commonwealth Minister or departmental officers in the acceptance of the tender.