Toner cartridge reseller hauled in on bribery allegations

Melbourne-based reseller Consumable Management Group (CMG) has been dragged in front of the West Australian Corruption and Crime Commission (CCC); accused of using bribery and intimidation to sell printer peripherals to a number of WA-based government agencies.

Sales staff at CMG were accused of using "complex sales techniques" to fool public servants into ordering toner cartridges for photocopying machines "which was overpriced and not of the stated quality".

Counsel assisting the CCC Kevin Tavener said CMG also operated under the names Relliance and Elite Imaging; Mycom, Laser Pacific; Premium Office Supplies and Premium Office Express.

It was alleged that salespeople from this group of companies applied continuous pressure to "relatively junior" purchasing officers within the agencies.

"Those tactics included numerous phone calls, adopting a dominating manner, using misinformation coupled with personal gifts to induce the officer to buy goods outside of the government policies," Tavener claimed.

"In respect of toner cartridge for example, the common practice was for the salesperson to call up the client, generally a junior clerk, and tell them that they had already supplied them or their agency or were about to supply their business unit with toner cartridge."

According to Tavner, a CMG salesperson would also mention the name of another junior employee with whom they had generally dealt with and confirm the type of photocopier they had.

"The salesperson would then advise the employee that they had another batch of toners to dispatch to them and they would send through a confirmation order for the employee to sign, acknowledging the next part of the contract."

Many of the employees accepted at face value that they would be in breach of whatever contract was in place should they have refused to sign on for the new shipment, he stated.

A $316,000 problem

It was alleged that the practice had an "adverse impact" on the state's (WA) finances.

Information gathered by the CCC  found that more than 20 West Australian Government departments or branches and more than 20 local government bodies had purchased goods from CMG.

Tavner alleged that in the three-year period between 1 January 2006 and 1 January 2009 (in respect of State Government entities only), approximately $473,000 had been spent on toners.

It was alleged the state government entities had spent "$316,000 more with CMG" than if they had followed government policies.

"There's a number of policies which should've been followed by the procurement officers in ordering photocopying toner. The procurement officers were responsible for their actions, they signed the forms by which the toner was ordered," said Tavner.

Tavner noted the inquiry only highlighted some of the issues brought forward by CMG's actions.

He said the Commission was undertaking a more "comprehensive survey" of government agencies to determine the full impact of CMG's "undermining" of "government purchasing practices as conducted by local purchasing officers".

CRN attempted to make contact with CMG but was told by staff that the reseller had been taken over by a company called Better Image.

CMG staff refused to comment further.