Significant probity and conflict-of-interest deficiencies have been identified by a long-awaited report on the controversial privatisation of the South Australian Visitor and Travel Centre.

The Auditor-General has found numerous problems in the way the South Australian Tourism Commission selected the private sector tenderer to take over the centre, including that it “did not detail the reasons for selecting the preferred tenderer”.

In 2011 a tender to privatise the South Australian Tourism Commission-controlled centre was awarded to a company owned by Ben Mead, the son-in-law of then-SATC chairman Bob Foord.

Foord denied any wrongdoing, and the SATC maintained that all proper probity controls were in place during the tendering and the board was not involved in any way in the decision-making process..

A long-awaited Auditor General’s report into the tender process was tabled in Parliament yesterday, more than two years after it was ordered by the Tourism Minister at the time, John Rau.

The report has found the tender evaluation panel recommended Mead’s company win the tender but failed to give specific reasons for its decision, or write a detailed evaluation report in support of his bid.

“The audit review indicated that there were significant deficiencies in the procurement process and some shortcomings in the contract management process,” the Auditor General’s report says.

“There was no detailed evaluation report supporting the recommendation of the preferred tenderer.”

A purchase recommendation report was written, but it “did not detail the outcomes of the individual evaluation process including the specific reasons for decisions of the evaluation team” and “did not detail the reasons for selecting the preferred tenderer”.

The report found conflict of interest irregularities on both sides of the process.

“Certain tender submissions did not declare potential/actual conflicts of interest,” the report said.

“Audit also noted that conflict of interest declarations were not completed by one evaluation team member and could not be located by another evaluation team member.”

The SATC’s probity officer at the time comes under fire for failing to give formal written advice on how to handle potential conflicts of interest in the tendering process.

Multiple recommendations for improving procurement processes were given to the SATC by the Auditor-General more than a year ago, although these are not detailed in his report.

“The Commission’s response in September 2012 accepted the majority of audit recommendations and indicated proposed actions to improve procurement and contract management processes,” the report said.

The Auditor-General noted the SATC’s response as “generally considered to be satisfactory”.

At the time it was made, the decision to award the tender to Mead’s company attracted public controversy and strong criticism from the State Opposition, not just because of the connection between Mead and Foord, but also because the centre was relocated to a basement in Grenfell Street from its previous high profile position in King William Street. In addition, disability access had not been sorted out at the time it opened.

Soon after the decision was made public Foord resigned from the SATC, saying he was trying to save the commission from unfair criticism and innuendo.

Then-SATC chief executive Ian Darbyshire has also moved on and is now leading the Rundle Mall Management Authority.

In June 2011 the State Government referred the entire tender process to the independent Auditor-General.

In February last year the travel centre was handed back to the State Government by Mead’s company and reopened on North Terrace.

Media reports at the time claimed the centre was running at a loss, and there were complaints that Mead’s company had been provided with misleading information during the tendering process.

SATC chief executive Rodney Harrex said “the member of the team who did not complete a conflict of interest declaration is no longer employed by the SATC”.

“The evaluation team member whose declaration could not be located has been moved to a different role,” he said.

He said the probity advisor was a management consultancy firm – not a government employee.

Tourism Minister Leon Bignell said “the individuals leading the travel centre procurement have all left the organisation and the SATC has diligently implemented the Auditor General’s recommendations which he acknowledged in his report”.

Shadow Tourism Minister David Ridgway slammed the entire process as “appalling”.

“Since 2011 the Government has maintained that moving the State’s Tourist Information Centre from a prime King William St office to a Grenfell Street basement was all above board, even if it was underground,” Ridgway said in a statement.

“Now we find – just as the Opposition suspected – that things weren’t quite as kosher as the Government would have us believe and the proof is in the Auditor-General’s report.

“I’m particularly concerned that the risk management processes were non-compliant and at the lack of documentation.

“I find it appalling that there were numerous instances of non-compliance with State Procurement Board policies, and that the Commission even made payments to the tenderer before it ensured relevant contractual conditions had been satisfied.”