THE South Australian Auditor-General has been asked to investigate a scheme in which companies pay up to $20,000 to rub shoulders with council executives to win council business. A ratepayers group wants an investigation into Local Government Managers Australia, a professional association for council executives which takes money to fund its "gala" dinner and other parties from companies vying for business from Adelaide councils. LGMA SA promotional material says: "South Australian local government spends almost $1 billion annually on goods and services. LGMA SA can assist you to obtain a share of this market for your products and services."
Residents and Ratepayers Association president Kevin Kaeding said the association objected to help obtaining council business being offered in exchange for sponsorship deals. "It just smells that there could be something not right about this – $45,000 on a gala dinner partly paid for by businesses and at a time when ratepayers are facing cutbacks," he said. About 250 executives from throughout SA councils are part of the scheme.
LGMA SA president Mark Withers, who is also chief executive officer of the City of Charles Sturt, said even though the members were public servants, the organisation was not for profit. "It is just a normal sponsorship arrangement, you get exposure to all these local government professionals in the sector," he said. "The safety net for us is that LGMA does not consume any of the products or the services of the sponsors, it is marketing and exposure, not procurement." Private companies which gave $10,000 to LGMA this year were waste disposal firm SITA, accountants UHY Haines Norton, Norman Waterhouse Lawyers and management consultant CAM.
A spokesman for Local Government Minister Gail Gago said: "The LGMA cannot influence or direct the policies and decisions of individual councils."
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