Defence tender up in air over leak and corruption claim

[Greg McDonald]

Very intersting article from news.com.au:

A $90 MILLION tender to charter aircraft to carry troops to the Middle East has been halted by an internal investigation into allegations of corruption and leaks within Defence.
The inquiry centres on the relationship between Army Reserve officer, aviation consultant and airline operator David Charlton and preferred tenderer for the two-year contract, Brisbane-basedAdagold Aviation.

Strategic Aviation has run Defence flights to the Middle East Area of Operations (MEAO) since 2005 but was told earlier this month that Adagold was preferred and would take over in October, subject to negotiations.

About 6000 Australian Defence Force personnel fly between Australia and the MEAO and back each year under the contract at a cost of about $8500 a head, including freight.

Mr Charlton, who is connected to both Adagold and its aircraft supplier, Portuguese charter operator HiFly, worked in the Defence Joint Movements Group, responsible for troop flights, between June 2009 and April.

He made headlines in March 2009 when his company SkyAirWorld went under with debts of $93 million.

Mr Charlton also appeared in disguise for an ABC 7.30 Report program in 2007 criticising Strategic Aviation for its then links with HiFly.

It is understood Adagold tendered a lower price to operate a four-engine Airbus A-340 aircraft operated by HiFly, which sought permission to add the larger aircraft - perfectly suited to the new tender - to its operator's certificate just before the documents were released.

The new tender document called for 150cu m of cargo space, which is about 12cu m more than Strategic's existing two-engine Airbus A-330-200 airliner can carry.

Aviation sources said the crucial information about bigger cargo space, leaked to Adagold, could only have come from within Defence.

Secretary of Defence Ian Watt has directed his chief audit executive to conduct an immediate probity audit into the tender process.

It also confirmed that Mr Charlton was a member of the Army Reserve but refused to say where he had worked. Mr Charlton could not be contacted for comment yesterday.

[Robert Zweck]

A lucrative contract like this is always going to have its problems.

[Bob C]

Presumably the RAAF's KC30s will take over this role when they enter service.

But I wonder if the 12cu m smaller cargo space on what are "militarised" A330s will be of concern then ?