Payroll inquiry leads to focus on one man

The Queensland Health payroll inquiry is investigating how a simple $6.19 million payroll contract, signed in 2007, led to a $1.2 billion bill for Queensland taxpayers.
  Source: The Courier-Mail

AFTER two weeks of evidence, the narrative emerging from the Queensland Health Payroll Inquiry has developed a strong focus on one man - Terry Burns.

The inquiry wrapped up its first two-week session at lunchtime yesterday, after 10 days poring over the lead-up to the worst deal Queensland ever negotiated.

The inquiry, led by retired Supreme Court Judge Richard Chesterman, QC, is investigating how a simple $6.19 million payroll contract, signed in 2007, led to a $1.2 billion bill for the Queensland taxpayer.

Mr Chesterman had described the accepted facts of the deal as "notorious", noting the payment to successful contractor IBM jumped to $37 million by the time the system was implemented, while government costs ballooned to $64 million.

Premier Campbell Newman has estimated the cost of the entire exercise which left thousands of Queensland Health workers under and over paid will cost the state $1.2 billion.

Counsel Assisting Peter Flanagan, SC, who has led the meticulous cross-examinations of most of the 18 witnesses, has broken the complex history of the deal into four components.

First is the government's initial request for a proposal; then specific tender invitation itself on September 12, 2007; then an analysis of the companies which responded and, last, the role of individuals involved.

The inquiry has heard strong evidence something needed to be done in 2007 as the state struggled to provide IT services via an agency inside the Queensland Treasury - CorpTech.

Several reviews were commissioned to determine the best path ahead, some of them partially authored by Mr Burns, who recommended the creation of positions he later came to fill.

In 2007, Mr Burns had only recently arrived in Brisbane and his role was the first work he had done in Australia, yet he was soon playing a key role in evaluating whether his old employer should win a multi-million dollar contract.

Mr Flanagan noted Mr Burns had an impressive CV, having worked in senior roles in IBM in South Africa as its top man, "as he describes it".

A key piece of evidence to emerge this week was an email written by an IBM executive, which revealed that Mr Burns was having off-the-record and on-the-record meetings with his old employer.

"Terry is almost at a stage that he is coaching us, and is already strongly recommending the position we should take in some areas," the executive says.

More revelations contained in 35 volumes of documents are expected to emerge on April 8 when the inquiry resumes with four more witnesses to be cross examined on the tender process.

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