Ink supplier claims tender rules changed

A long-standing Adelaide company claims valuable income and jobs are going down the drain because of unfair government tendering.

Supplying toner cartridges for government photocopies is a $10 million a year business, but Penfold WC recently lost out to US giants Staples and Office Max, whose prices were way lower.

The company claims tender rules were changed after the deal went through, allowing cheaper refilled cartridges, as well as new ones.

Penfold said it could have supplied the same at almost a third of the cost, but was never given the chance.

“We were knocked out that we weren’t cheap enough on the originals, so how is that a fair process,” managing director Greg Barraclough said.

The company is now sacking 15 staff members.

“I’m going to be looking for a new job soon, in today’s market I’m going to be finding it hard,” employee Maria Thornton said.

Independent Senator Nick Xenophon said a top-level American audit shows Office Max did the same thing in California, costing local government there almost $400,000 extra.

The South Australian Government has disputed the allegations, and claims 90 per cent of purchased cartridges are new.