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A key system connecting the private sector to lucrative government contracts operates as a “protection racket” to the detriment of small and medium businesses, a new parliamentary committee report says, with one procurement expert saying changes proposed by the committee could be “life changing” for SMEs.
The Joint Committee of Public Accounts and Audit tabled its report on Commonwealth procurement practices on Wednesday, after a lengthy inquiry into a system responsible for $80 billion in taxpayer spending each year.
It raised concerns about how the federal government ensures it gets value for money, and how businesses are selected to carry out big-ticket government projects.
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