On 2 September 2010, The Age newspaper published allegations that the successful tenderer for the 2005 Defence contract for Air Support Services to the Middle East Area of Operations, Strategic Aviation Pty Ltd, received inside help to win the contract from two ADF members involved in the tender process.
It is alleged the two ADF members passed inside information to the winning company, which later employed the pair in senior management roles.
Defence says it has assessed these allegations and determined that, if proven, they give rise to a range of potential criminal offences.
In accordance with the Commonwealth Fraud Control Guidelines, Defence has referred these allegations to the Australian Federal Police.
Defence says that as this matter is now in the hands of the Australian Federal Police, it would be inappropriate to comment further.
The Minister for Defence has advised the Minister for Home Affairs this action has been taken.
The separate review Defence is undertaking into allegations of irregularities in the 2010 process for retendering the contract for Air Support Services to the Middle East Area of Operations is continuing and the tender remains incomplete at this time.
According to The Age, it was alleged that information was leaked to the company named as preferred tenderer, Adagold Aviation.