Department fixes 'error' following questions about Malcolm Turnbull election eligibility

Sydney Morning Herald NOV. 8 2016 - 2:28PM

James Robertson

Prime Minister Malcolm Turnbull's own department has been forced to correct records showing a company he jointly-owned had been awarded a government contract, which could have raised questions about his election eligibility.

In June 2010, Mr Turnbull's wife Lucy was awarded an 18-month contract to consult on an expert COAG panel about cities.

A register of Department of Prime Minister and Cabinet contracts had noted the work was awarded to Turnbull & Partners, a family company jointly owned by Mr and Mrs Turnbull and which the Prime Minister serves as a director.

Fairfax Media inquired about the arrangement on Friday following revelations former Senator Bob Day's election to the Parliament might be ruled invalid because of a connection to government business.

The Constitution forbids the election of any MP with a direct or indirect interest in "any agreement" with the Commonwealth, either by themselves or a small company.

Fairfax Media contacted a number of legal experts who believed the awarding of a contract to Turnbull & Partners could have raised concerns about the validity of Mr Turnbull's 2010 election to Parliament. Fairfax Media presented the claims Mr Turnbull's office last week.

But on Tuesday morning, the department said it had made a mistake and that the work was awarded directly to Mrs Turnbull, not the pair's company.

"This was a departmental error and is being corrected as a matter of priority," a spokeswoman said.

Mr Turnbull's office referred questions to the department.

The contract had an attached value of up to $30,000 but Fairfax Media understands Mrs Turnbull was eventually paid a lesser sum for the work, which was scheduled over 18 months.

Experts contacted by Fairfax Media said that the contract, had it been awarded to the family company, could have meant Mr Turnbull's September 2010 election could have become the subject of doubt during the Julia Gillard and Kevin Rudd-led hung Parliament.

Another Coalition MP, John McVeigh, was on Monday forced to distance himself from a consulting firm that had won work with several government departments.

Mr Day's eligibility woes highlight unresolved questions relating to section 44 of the Constitution, which outlines reasons MPs can be disqualified.

Successive governments have delayed the task of overhauling that part of the Constitution, which also forbids the election of people employed by the government.

Mr Day's matter will be heard by the High Court early next year.