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The watchdog claims Spotless and Ventia executives communicated with each other to agree to seek additional compensation beyond what was agreed by Defence for the STIM20 works, with the executives concerned about recouping the costs associated with these works. Defence agreed to an additional mark-up after the executives petitioned the agency “several” times.
In a statement to the market, Downer said it “categorically denies” the claims made by the ACCC and said it would “vigorously” defend any proceedings, saying it believed neither Spotless nor its two executives engaged in unlawful conduct.
“We allege this conduct caused direct harm to the Commonwealth and ultimately Australian taxpayers.“: ACCC chair Gina Cass-Gottlieb.Credit: Dominic Lorrimer
“Downer is committed to best practice governance and risk management and continues to invest heavily in its compliance systems and processes,” Downer chief executive officer Peter Tompkins said.
In a separate statement, Ventia acknowledged the proceedings but said it was reviewing the allegations and would not comment further. “Ventia is committed to ethical business practices and seeks to uphold the highest standards of governance and risk management in all our operations,” it said.
The ACCC is seeking declarations, civil penalties and costs against Downer and Ventia, along with the four senior executives. It is also seeking disqualification orders against three of them in relation to the alleged conduct.
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The maximum penalty for cartel conduct is either $10 million, three times the value obtained by the people engaging in the alleged conduct, or 10 per cent of a company’s revenue, whichever is greater.
In a statement, a spokesperson for the Department of Defence said it was aware of the proceedings.
“Defence requires all suppliers to comply with Australian law and takes these allegations very seriously. On receipt of the ACCC advice, Defence immediately commenced taking steps to assure itself that the alleged conduct is not ongoing and was isolated,” the spokesperson said.
Ventia shares tumbled 22 per cent to $3.33 on Thursday. Downer shares also fell 5.95 per cent to $5.37.
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