Home Affairs secretary Mike Pezzullo has rejected he oversaw “endemic underperformance” over the handling of a contract for keeping a watch on the nation’s borders.
Pezzullo told the parliament’s public accounts and audit committee on Friday he faced a “devil’s choice” between losing the capability to protect the nation’s borders or extending existing contracts.
A review by the Australian National Audit Office released in 2021 criticised a contract signed between the government and company Surveillance Australia to provide 10 aircraft to patrol the country’s borders.
The $2.6 billion contract has not been put to tender since it was first awarded in 2006 despite the auditor-general finding the department’s handling of it had “not been effective”.
In a fiery exchange, Pezzullo was questioned by committee chair Julian Hill and former defence minister Senator Linda Reynolds about the management of contracts worth billions.
Pezzullo said there had been a market sweep to see if there were other companies that could provide the same capability.
He said while the department agreed to all four audit recommendations, he did not agree with the findings of the report that contract management had not been effective.
Senator Reynolds said there was no other way to describe the management of the contract as anything other than an “endemic underperformance”.
She asked Pezzullo if he accepted accountability as secretary.
In response, Pezzullo said he was accountable for the performance of the department but rejected her characterisation.
“We don’t necessarily agree with the conclusions that the ANAO sometimes get to, but we agree because it’s just common sense often that the best practice that they recommend is what should be should happen anyway,” he said.
Asked if the culture of the department was a positive one, Pezzullo said it was “mixed” and wished he could pay his staff more.
When questioned about poor staff survey results and a petition circulated in 2019 calling on him to resign, Pezzullo said the Community and Public Sector Union had organised petitions.
“If I was running the CPSU, that’s what I'd do as well,” he said.
He added that bargaining with staff was underway at that time.
