Infosys cuts ties with Synergy360 as Australia probes ‘tainted contracts’ linked to former MP Stuart Robert

IT services company Infosys said on Friday that it was cooperating with an Australian government investigation into ‘tainted contracts’. The software major has also reportedly cut off ties with lobbying firm Synergy 360 - which was reportedly paid $16 million over 5 years to help Infosys grow its business in Australia. An investigation was launched last year amid claims that former MP Stuart Robert had helped the lobbying firm and its client win government contracts.

In November last year, a report by Nine Newspapers claimed that the then MP had been "secretly providing advice" to the Canberra-based firm. The lobbying and consulting organisation, it alleged, was in turn helping “large companies win lucrative government contracts and obtain access to senior Coalition politicians”. Publications also cited a cache of leaked emails outlining the way Robert had used his status as a federal lawmaker to help Synergy 360 in 2017 and 2018.

Days later, the Albanese government had ordered an investigation into the contracts awarded in the government services portfolio. Robert however has denied any wrongdoing, declaring he had “zero involvement” and insisting that departmental procurement was conducted with the “highest levels of probity”.

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According to a report by The Guardian earlier this week, Infosys paid a whopping $16 million to Synergy over the past few years. The parliamentary committee probing the matter was reportedly told that Synergy 360 in turn sent the profits to the trust of a company part-owned by Robert.

According to Infosys’ Regional Head for the Asia Pacific region Andrew Groth, most of the money was for core work, while 15% was for sales support and 15% was for “success fees”. Infosys had been selected after a 14-month procurement process, and Groth said that he met with Robert 11 times while the latter served as the government services minister. However this was because the MP had wished to be apprised of progress made on a specific project to upgrade the information technology systems at Services Australia.

“We are cooperating with the Australian parliamentary inquiry in good faith,” Infosys told Business Standard in a statement.