The lobbying firm Synergy 360 proposed a structure designed to allow Stuart Robert to profit from government contracts he helped win for its clients, according to a bombshell statement to the parliament’s audit committee.
On Wednesday, the joint committee of public accounts and audit published a signed statement from Anthony Daly, the former personal and business partner of Synergy 360 former executive director Kham Xaysavanh, alleging the company’s co-owner, David Milo, proposed the structure to benefit Robert.
Robert immediately rejected the allegation “in the strongest possible terms”, noting it was made only under parliamentary privilege. He said there was “zero evidence” in the submission.
Daly said that on 8 September 2017 Milo organised a meeting with Xaysavanh to propose to transfer 20% of her shares to United Marketing, “controlled by an individual named John Margerison”.
“Ultimately, this arrangement was designed to facilitate the flow of funds through United Marketing and onward to Stuart Robert,” Daly said.
“The main objective of this arrangement was to secure Stuart Robert’s involvement and support in acquiring federal government contracts.
“Stuart Robert’s political influence and connections within the government sector were deemed crucial in ensuring favourable outcomes.”
Daly said Xaysavanh “verbally consented” to the proposal, and on 13 September she asked his assistance to facilitate a share transfer, including the 20% stake for United Marketing.
The statement outlines numerous meetings “involving Stuart Robert” arranged by Milo and Xaysavanh, and attended by Synergy 360 clients including Infosys, Unisys, Delv and Salesforce.
Daly alleged these were scheduled “after parliamentary sessions in Canberra”, at locations including Milo’s residence, parliament house and Margerison’s house on the Gold Coast.
These gave clients an opportunity to discuss “forthcoming tenders and contracts” with Robert, who was then the minister for government services and the National Disability Insurance Scheme, Daly said.
Daly said Xaysavanh coordinated these events “by contacting Stuart Robert’s personal assistant and clients via text messages”.
Daly said he was told by Xaysavanh the majority of these meetings were “deliberately omitted” from Robert’s parliamentary diary “to maintain confidentiality and avoid public awareness”.
Daly claimed in the statement that in 2018 Milo told him that Robert, then minister for human services, had directed Centrelink leases “towards properties owned by one of Margerison’s companies, resulting in favourable terms such as high rents and long lease durations”.
“This arrangement also extended to Margerison’s health companies in relation to the NDIS.”
Robert told Guardian Australia: “I reject completely all of [Daly’s] allegations in the strongest possible terms and I note that he had only made them under privilege where he is immune from legal consequence.
“I note he has provided zero evidence, simply made wild allegations under privilege. [It is] extraordinary that a committee would release as such with zero evidence.
“I note that every contract has been investigated fully by the Watt review [into procurement at Services Australia and the NDIA] and no misconduct was found.
“I reiterate what I have said numerous times. At no time have I ever been paid for any advice or guidance in any form. At no time did I lobby to assist any firm in such a manner. I also reiterate that Mr Margerison and Milo have both said publicly that no payments were ever made, nor sought in any form.
“Mr Daly’s submission with zero evidence and wild accusations is rejected in its entirety, simply not believable and is outrageous.”
Robert said he didn’t believe he had “ever met Mr Daly nor spoken to him”, accusing him of stealing emails from Milo, an accusation Daly rejected.
The committee is investigating allegations that Robert helped Synergy 360 and its clients, including Infosys, win government contracts.
Robert has denied wrongdoing and has previously rejected any “implied imputation” that he had influenced procurement, declaring he had “zero involvement” and that departmental procurement was conducted with the “highest levels of probity”.
In a statement the committee said on Friday it heard that Infosys paid Synergy 360 in the order of $16m over five years for state- and federal-linked projects including retainers, “success fees” and “business development” work, and held 11 meetings with Robert to discuss major projects and digital transformation, sometimes without public servants present.
The committee has resolved to order Margerison to answer questions and appear at a further hearing on 28 July to explain its financial arrangements.
At a press conference in Canberra the committee chair, Julian Hill, noted that Daly had provided evidence under oath at a private hearing on Friday morning.
Hill told reporters the committee had “reached no conclusions” at this stage and would continue to follow “the evidence as far as we can”.
The government services and NDIS minister, Bill Shorten, later said the signed statement contained “very serious allegations”, but stressed that Robert and his associates had denied wrongdoing.
Shorten revealed he had asked Services Australia to “advise what the next appropriate avenues are”, which will include consideration of a potential referral to the national anti-corruption commission.
Shorten said he had asked for further information about Centrelink leases, including the lease “of a critical building which could be what is referred to” that is coming up for expiry, at Tuggerah Lakes.
Robert announced his retirement from the Gold Coast seat of Fadden in May. A byelection will be held on 15 July.
On Thursday, the government services and NDIS minister, Bill Shorten, said in parliament that in November he had updated the house on reports in the Nine newspapers “alleging Mr Stuart Robert used his status as a federal MP to help Canberra lobbying firm Synergy 360 sign up corporate clients with a promise of helping them navigate government bureaucracy and parliament and meet key decision-makers, including Coalition ministers”.
“The initial report detailed how Mr Robert personally intervened in contracts worth $274m awarded to Indian software giant Infosys,” he said.
“Flowing from these disturbing revelations, Services Australia and the NDIS investigated potentially tainted contracts linked to Synergy 360.”
Shorten said a review by former public servant Dr Ian Watt found 19 of 95 procurements “had real deficiencies”.
Since then, he said, the committee had heard evidence from Margerison that in 2017 he had “instructed his accountant to direct Synergy 360 profits derived from commonwealth contracts to a trust to which Mr Robert was a beneficiary”.
The committee heard he had emailed his accountant to say “anything that comes in from this in the future, I will end up sending to [Australian Property Trust] the same amount that comes in”.
Robert was a shareholder in the trust until 2018.
Anyone with a direct or indirect financial interest in government contracts cannot sit as a senator or MP under the constitution, Shorten said, adding that it was not clear “if that threshold has been breached”.
