Join our daily newsletter At The Bell to receive exclusive market insights
- Under new procurement changes by the WA government, businesses that participate in illegal conduct may now be barred from competing for government projects
- The new laws are Australia’s first debarment regime and they aim to strengthen corporate practices and procurement integrity
- The debarment system covers a wide variety of offences, from fraud to violations of occupational health and safety regulations
- WA Finance Minister Tony Buti says “dodgy practice” has no place in government contracting
Under new procurement changes announced by the McGowan Government, businesses who participate in illegal conduct may now be barred from competing for government projects or have current contracts annulled.
The new laws are Australia’s first debarment regime and they aim to strengthen corporate practices and procurement integrity.
The debarment system covers a wide variety of offences, from fraud to violations of occupational health and safety regulations, providing workers with more protection.
In the most serious situations of misconduct, such as when a supplier is convicted of fraud, bribery or corruption, the new system might be used to bar these suppliers from doing business with the government.
The debarment regime aims to make sure suppliers can compete on a level playing field without having to change their business practises to compete with competitors who are engaging in corruption.
It also aims to allow state government agencies to act with greater confidence in working with suppliers who are not debarred, and that public funds are protected by removing potential losses caused by criminal activity by suppliers.
WA Finance Minister Tony Buti said “dodgy practice” has no place in government contracting.
“Such businesses can undermine fair competition, which has flow-on impacts to workers and wider economic growth,” he said.
“The debarment regime excludes from government contracts, at a whole of government level, suppliers who do not run their businesses responsibly. This will help to ensure public funds are safeguarded, workers are more protected and public confidence in government contracting is maintained.
“In certain situations, suppliers or contractors can be excluded from supplying to government for five years where they have engaged in serious misconduct.”
The new laws, which are part of the WA Government’s procurement reforms, are one component of a larger electoral pledge to ethical procurement.
The rules will apply to suppliers who provide and subcontract to the Western Australian Government for products, services, community services and works.
There will be three levels of debarment behaviour, with the most egregious conduct leading to a five-year debarment.
