Shire chief “misled” councillors over $1 million contract

The Shire of Exmouth chief executive has admitted he “misled” councillors when he recommended appointing a Perth-based company to build a the $1 million Ningaloo Centre aquarium without putting it out to tender.

Bill Price was subject to several hours of questioning this week, at a corruption watchdog hearing into activities about the awarding of a million dollar contract without tenders.

The contract was for an aquarium as part of the new, $32 million Ningaloo Centre which is currently being built in Exmouth and was awarded to Ocean Reefs Production in July.

In today’s hearing, counsel assisting commissioner Tony Power said there was “no question” Mr Price was “misleading the council on the factual position” when submitting a report recommending the council engage the Perth-based company on July 27.

The report recommended the council enter into a minor works contract with Ocean Reefs Production for the design, installation and fitout of the Ningaloo Centre for $1,088,260.

Mr Power said the contract had already been awarded to Ocean Reefs prior to the council voting, despite no “financial due diligence” being completed into the private company.

“Did you tell them (the council) on July 27, the contract had been made,” he said.

“(In the report) you are providing reasons to council as to why they should take your recommendation.”

In response, Mr Price admitted he had “misled” the council in writing the report.

When asked why he wrote it, Mr Price said “because I knew I stuffed up in signing the contract” and “in hindsight” it would have been better to “go to the council and admit”.

Mr Power said the report was written to persuade the council to approve what Mr Price had already been signed off on.

“Aquarium installations and services of this scale are extremely unique with a limited number of locally registered companies being available,” the report said.

“ORP … have been recommended and are considered specialists in aquarium design, but more importantly already have the necessary aquarium specimen collection licenses.”

“To this end it is considered that there is no requirement for the calling of an additional tender for this work, based on the following clause contained within Division 2 – Tenders for Providing Goods & Services section of the Local Government (Functions & General) Regulations 1996.”

For the first time, the Corruption and Crime Commission WA public hearings were live streamed for the public to watch on the internet.

The hearings were held to investigate new evidence, obtained from a raid on the Shire offices in August, which had not been covered in private witness examinations already.