.au Historical Financial Irregularities

Ron Andruff made this Freedom of Information request to Department of Communications and the Arts

Response to this request is delayed. By law, Department of Communications and the Arts should normally have responded promptly and by (details)

From: Ron Andruff

Delivered

Dear Department of Communications and the Arts,

We hereby make a request under the Freedom of Information Act 1982 (Cth) ("Act") to access certain documents relating to .au Domain Administration Ltd ("auDA"), as more fully described below.

1. About auDA

auDA is the administrator of the Domain Name System in Australia endorsed by the Australian Government to administer the .au domain space. Clause 19.8 of auDA's constitution states that a "representative of the Commonwealth of Australia may attend any meeting of the Board of.. [auDA] as an observer". We understand that the Department of Communications and the Arts is currently an observer on the auDA board.

2. Background to the request

Historically, auDA's leadership was driven by CEO (Chris Disspain) and Chair (The Hon. Tony Staley AO), each of whose tenures lasted for more than 15 years. According to the Cameron Ralph Report 2016, which forms the best practice standard of auDA's corporate governance (accessible here - https://www.auda.org.au/assets/Uploads/C... ), "While these long-standing relationships have had considerable strengths, they have also continued early patterns of fairly informal Board practices over a period of some 15 years" which, arguably, "have not kept pace with auDA's growth in scale and importance to the Australian community, nor with evolving good practice in governance and accountability". In light of this alleged lack of governance, accountability and transparency, the newly appointed CEO and management has taken initiatives in the past 12 months to introduce various organisational and administrative policies to reform auDA's governance framework.

As part of these initiatives, a forensic review of auDA's historical expense management practices was performed to ensure accountability on expenditure in general. According to slide six of the CEO presentation given at the Special General Meeting on 31 July 2017 (accessible here - https://www.auda.org.au/assets/pdf/SGM/a... ), the Board of auDA ("Board") appointed PPB Advisory, which specialises in undertaking forensic investigations and investigating fraudulent activities, to conduct an independent forensic review of auDA's expense management in two phases ("PPB Review") as follows:

• Phase 1: travel and expenses review under instructions from Maddocks commencing in February 2016; and
• Phase 2: forensic investigation under instructions from Ashurst commencing in September 2016.

Slide seven of that presentation summarises the findings of the PPB Review as follows:

"The review of travel and expenses identified there was a lack of formal policies and procedures governing how travel and expenses were managed at auDA. There were high levels of expenditure on international travel and reimbursement arrangements with international bodies that lacked transparency, which should have warranted a more robust process;.. There was general a lack of formal procedures and supporting documentation."

It is our understanding that PPB Advisory has prepared a report (or potentially, a series of reports) in relation to the PPB Review ("PPB Report"). According to item 6 of the minutes of the Board meeting held on 10 October 2016 (accessible here - https://www.auda.org.au/assets/auDA-Boar... ), the findings of the PPB Review were "based on staff interviews and included IT, Finance, Complaints Management, HR and Administration".

According to item 4(a) of the minutes of the Board meeting held on 13 February 2017 (accessible here - https://www.auda.org.au/assets/Board/201... ), it appears that the final version of the PPB Report was considered as follows:

"4. Matters for decision
a. PPB Final Report

Peter Morris, Partner at PPB Advisory, provided an overview of Phase 1 and Phase 2 of the investigation to Directors.

Lawyers at Ashurst provided advice to the Board.

The Board agreed that the under-reporting of FBT [Fringe Benefit Tax] to the ATO [Australian Taxation Office] needs to be investigated further.

The Board note the findings and recommendations of the report. The Board note initial recommendations have been implemented. The Board instruct the CEO to continue to implement governance improvements."

Further, item 4(c) of the minutes of the Board meeting held on 24 April 2017 (accessible here - https://www.auda.org.au/assets/Board/201... ) states that:

"The CFO advised the Board that PwC have been engaged to assist with the voluntary disclosure of under-reporting of FBT identified during the PPB investigation."

3. Requested documents

In light of the above, we request access to the following documents:

• a copy of the PPB Report;
• copies of any findings or reports relating to "the under-reporting of FBT to the ATO" as noted in item 4(a) of the minutes of the Board meeting held on 13 February 2017;
• internal meeting minutes or any other record (in any form) of matters discussed at in-camera discussions held during auDA's board meeting on 24 March 2016 relating to the termination of the ex-CEO Chris Disspain (excluding the board minutes dated 24 March 2016 which are published on the auDA website); and
• copies of any reports or other records relating to expenses incurred by the ex-CEO Chris Disspain during the period(s) the subject of the PPB Review and rational for extensive international travel and explanation of benefit to auDA and the Australian public in general,

(together, "Requested Documents").

In seeking disclosure of the Requested Documents, we note that there are a number of public interest considerations in favour of disclosure as follows:

• Promotion of the objects of the Act
There have been substantial public discussions within the general IT and internet domain community regarding the allegations of financial irregularities and the lack of corporate governance by the former auDA CEO, Chris Disspain, and management. Disclosure of the Requested Documents would be in line with the overall objectives of the Act, allowing inquiry into possible deficiencies in the conduct or administration of auDA, revealing any past improprieties and providing a clear background to what informed the overhaul of the auDA's management and its governance policies.

• Inform debate on a matter of public importance
Given the domain .au is used by millions of Australian businesses, organisations and individuals every day, auDA's corporate governance and transparency are a matter of public importance. It is vital for the public to understand why and what changes were made to auDA's governance structure and practices so that they can have confidence that auDA, the sole administrator of Australia's internet infrastructure, is stable and reliable. In particular, the PPB report would provide details as to the under-reporting of Fringe Benefits Tax, alongside other potential financial irregularities. It is in the public interest to disclose this document so that such information can be public knowledge, thus allowing for a greater public understanding and oversight of the management of a policy authority that has been formally endorsed by the Australian Government as the appropriate body to administer Australia's top level domain. Without disclosure of such pertinent information, the public is left in the dark as to how such an important national body has been managed.

• Increasing public scrutiny, discussion and review of decision-making by auDA
As acknowledged in the letter of endorsement provided by the Minister for Communications, Information Technology and the Arts, the internet naming system is a public resource in the sense that its functions must be administered in the public or common interest. As such, it would be in the public interest for the information that is contained within the Requested Documents to be within the public domain so that there is greater transparency on the processes associated with the governance of one of the key mediums of communication in Australia, the internet, and Australia's top level domain, .au.

We look forward to hearing from you and please let us know if you require further information or would like to discuss.

Yours faithfully,
Ron Andruff

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From: FOI
Department of Communications and the Arts


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UNCLASSIFIED

FOI 20-1718

 

Dear Mr Andruff

 

I refer to your email dated 15 September 2017 outlining a request for
access under the Freedom of Information Act 1982 (FOI Act) to: 

 

“…

•             a copy of the PPB Report;

•              copies of any findings or reports relating to "the
under-reporting of FBT to the ATO" as noted in item 4(a) of the minutes of
the Board meeting held on 13 February 2017;

•             internal meeting minutes or any other record (in any form)
of matters discussed at in-camera discussions held during auDA's board
meeting on 24 March 2016 relating to the termination of the ex-CEO Chris
Disspain (excluding the board minutes dated 24 March 2016 which are
published on the auDA website); and

•             copies of any reports or other records relating to expenses
incurred by the ex-CEO Chris Disspain during the period(s) the subject of
the PPB Review and rational for extensive international travel and
explanation of benefit to auDA and the Australian public in general …”

 

Timeframe for receiving your decision:

Please note that we will process your request in accordance with the
Department’s [1]FOI Policy and that the 30 day statutory period for
processing the request commenced on 16 September 2017.  You should
therefore expect a decision from us by 15 October 2017.  The period of 30
days may be extended in certain circumstances.  We will advise you if
there is any extension of time.

 

Scope of request:

If it emerges that the scope of the request is unclear or is too large for
processing, the Department will contact you to discuss re-scoping the
request.

 

Charges:

Please note that it is the Department’s policy to issue charges for
processing FOI requests and that we will advise you of the estimated
charges when we are in a position to estimate the resources required to
process the request. 

 

Timing of release:

As the subject matter of the request will require the Department to upload
any documents released to you to the Department’s FOI Disclosure Log, I
take this opportunity to advise you that the Department’s policy is to
upload documents to the disclosure log on the same day as or as soon as
practicable after the documents are released.  More information on the
Department’s disclosure log is available in the FOI Policy.

 

Personal Information:

Your personal information has been collected by the Department as a result
of your correspondence, and will be used in order to process the FOI
request. Personal information is protected by law, including the Privacy
Act 1988. The Department’s [2]Privacy Policy is available on the website
and contains information about access to or correction of your personal
information, and how you may complain about a breach of your privacy.

 

Please note that if we need to consult with other people regarding release
of the requested documents, we may need to disclose your personal
information. When we consult with other people about the request, it may
be apparent to those people that you have made a request, even if we do
not disclose your identity. If you have concerns about the Department
consulting with other people about the request, please let us know about
these concerns.

 

Yours sincerely,

 

[3]cid:C4234CC5-D32A-44FF-A754-F96227B373F7

 

FOI Coordinator  / Information Law Section  /  Office of the General
Counsel

Department of Communications and the Arts

P +61 2 6271 1277

E [Department of Communications and the Arts request email]

 

GPO Box 2154 Canberra ACT 2601

  

[4]communications.gov.au

[5]cid:17F0759F-5B67-41BB-B991-66700A2CA00A [6]@CommsAu

 

[7]arts.gov.au

[8]cid:17F0759F-5B67-41BB-B991-66700A2CA00A [9]@artsculturegov

 

This email and any attachments may contain confidential information or
legal advice over which legal professional privilege can be claimed.  Such
privilege is not waived and you should ensure that, in the handling of the
advice, you avoid waiving privilege.  Please consult the author of the
advice if unsure about appropriate handling.

 

 

 

 

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From: FOI
Department of Communications and the Arts


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UNCLASSIFIED

Dear Mr Andruff

 

Please see attached correspondence in relation to your FOI Request
(reference FOI 20-1718).

 

Yours sincerely,

 

[1]cid:C4234CC5-D32A-44FF-A754-F96227B373F7

 

FOI Coordinator  / Information Law Section  /  Office of the General
Counsel

Department of Communications and the Arts

P +61 2 6271 1277

E [2][Department of Communications and the Arts request email]

 

GPO Box 2154 Canberra ACT 2601

  

[3]communications.gov.au

[4]cid:17F0759F-5B67-41BB-B991-66700A2CA00A [5]@CommsAu

 

[6]arts.gov.au

[7]cid:17F0759F-5B67-41BB-B991-66700A2CA00A [8]@artsculturegov

 

This email and any attachments may contain confidential information or
legal advice over which legal professional privilege can be claimed.  Such
privilege is not waived and you should ensure that, in the handling of the
advice, you avoid waiving privilege.  Please consult the author of the
advice if unsure about appropriate handling.

 

 

 

 

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From: Ron Andruff

Delivered

Dear FOI Officer,

Please be advised that the requested deposit has been paid in full yesterday.
It would be great if you could please confirm receipt of payment.

Thank you.

Link to this

From: FOI
Department of Communications and the Arts


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UNCLASSIFIED

FOI 20-1617

 

Dear Mr Andruff,

 

Re: Freedom of Information (FOI) Request

 

I refer to your request under the FOI Act seeking access to:

 

“…

•             a copy of the PPB Report;

•              copies of any findings or reports relating to "the
under-reporting of FBT to the ATO" as noted in item 4(a) of the minutes of
the Board meeting held on 13 February 2017;

•             internal meeting minutes or any other record (in any form)
of matters discussed at in-camera discussions held during auDA's board
meeting on 24 March 2016 relating to the termination of the ex-CEO Chris
Disspain (excluding the board minutes dated 24 March 2016 which are
published on the auDA website); and

•             copies of any reports or other records relating to expenses
incurred by the ex-CEO Chris Disspain during the period(s) the subject of
the PPB Review and rational for extensive international travel and
explanation of benefit to auDA and the Australian public in general …”

 

The Department’s examination of the documents relevant to your request has
identified that consultation is required under section 27 of the FOI Act. 
As such, the statutory timeframe for the processing of your request has
been extended by 30 days. 

 

Accordingly, the statutory timeframe will now expire on 5 November 2017. 
I will endeavour to ensure that the consultation is concluded as quickly
as possible.

 

I have attached Invoice No. 8019863 and Receipt No. 811391 relating to the
payment of the $56.43 deposit of the FOI processing charges.

 

Should you have any enquiries regarding this matter please don’t hesitate
to contact me.

 

Yours sincerely

 

[1]cid:C4234CC5-D32A-44FF-A754-F96227B373F7

 

FOI Coordinator  / Information Law Section  /  Office of the General
Counsel

Department of Communications and the Arts

P +61 2 6271 1277

E [Department of Communications and the Arts request email]

 

GPO Box 2154 Canberra ACT 2601

  

[2]communications.gov.au

[3]cid:17F0759F-5B67-41BB-B991-66700A2CA00A [4]@CommsAu

 

[5]arts.gov.au

[6]cid:17F0759F-5B67-41BB-B991-66700A2CA00A [7]@artsculturegov

 

This email and any attachments may contain confidential information or
legal advice over which legal professional privilege can be claimed.  Such
privilege is not waived and you should ensure that, in the handling of the
advice, you avoid waiving privilege.  Please consult the author of the
advice if unsure about appropriate handling.

 

 

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From: Carl English


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Our reference: RQ17/02088

Agency reference: FOI 20-1718

Mr Ron Andruff

By email: [FOI #4091 email]

Dear Mr Andruff

Extension of time under s 15AB

On 3 November 2017, the Department of Communications and the Arts (the
Department) applied for further time to make a decision on your FOI
request of 15 September 2017.

This application was on the basis that the processing period is
insufficient to deal adequately with your request, because it is complex.

Decision

I have decided to grant the Department an extension of time to process
your request to 19 November 2017. This decision has been made under s
15AB(2) of the Freedom of Information Act 1982 (Cth).

By granting further time it is anticipated that the Department will
provide a well-reasoned and better managed decision.

Contact

If you have any questions regarding this email please contact me on (02)
9284 9745 or via email [email address]. Please quote OAIC
reference number RQ17/02088 in all correspondence.

Yours sincerely

Carl English | Assistant Review and Investigation Officer | Freedom of
Information Dispute Resolution

Office of the Australian Information Commissioner

GPO Box 5218 SYDNEY NSW 2001| [1]www.oaic.gov.au

Phone:  +61 2 9284 9745 | E-mail: [email address]

 

Protecting information rights – advancing information policy

[2]cid:image001.png@01D26682.9CE52410

 

 

 

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From: FOI
Department of Communications and the Arts


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UNCLASSIFIED

Dear Mr Andruff

 

Please see attached Notice of Access Decision in relation to your FOI
Request (reference FOI 20-1718).

 

Yours sincerely

 

[1]cid:C4234CC5-D32A-44FF-A754-F96227B373F7

 

FOI Coordinator  / Information Law Section  /  Office of the General
Counsel

Department of Communications and the Arts

P +61 2 6271 1277

E [email address]

 

GPO Box 2154 Canberra ACT 2601

  

[2]communications.gov.au

[3]cid:17F0759F-5B67-41BB-B991-66700A2CA00A [4]@CommsAu

 

[5]arts.gov.au

[6]cid:17F0759F-5B67-41BB-B991-66700A2CA00A [7]@artsculturegov

 

This email and any attachments may contain confidential information or
legal advice over which legal professional privilege can be claimed.  Such
privilege is not waived and you should ensure that, in the handling of the
advice, you avoid waiving privilege.  Please consult the author of the
advice if unsure about appropriate handling.

 

 

 

 

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From: Enquiries

Our reference: MR18/00043

 

 

Dear Mr Andruff

 

Your IC review application

 

Thank you for your correspondence seeking to lodge an IC review
application with the [1]Office of the Australian Information Commissioner
(the OAIC).

 

Please inform the OAIC who the respondent is. The respondent field on your
IC Review was left blank. Please identify which agency your review relates
to.

We have referred your correspondence to the OAIC’s FOI team for
consideration and assessment.

 

Please note:

 

o If the agency has made a decision on your request and you have not
already provided our office with a copy of the decision letter, please
reply to this email attaching a copy as soon as practicable.

 

o If the agency has not provided you with a decision on your request,
please reply to this email as soon as practicable attaching a copy of
your original freedom of information (FOI) request to the agency and
any correspondence received in response to your request.

 

o Please also reply to this email as soon as practicable advising if you
have submitted a request to the agency for internal review of its
decision and it has not yet provided you with an internal review
decision.

 

o Your application will be assessed and you will be advised by an IC
review officer of the next steps within the next four weeks.

 

o Your IC review application will be shared with the agency as part of
the IC review process unless you have specifically requested
otherwise.

 

o If your circumstances change, or your request has been resolved
directly with the agency, please advise us by email as soon as
practicable.

 

Should you wish to follow up on this matter, please contact the OAIC
Enquiries Line on 1300 363 992 or email [2][email address] and quote
the reference number at the top of this email.

 

Yours sincerely

 

Amie

Enquiries Officer

Office of the Australian Information Commissioner

 

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From: FOIDR

Our reference: MR18/00043

Agency reference: FOI 20-1718

Mr Ron Andruff
By email: [FOI #4091 email]

 

Dear Mr Andruff

Your application for IC review of an FOI decision

I write with regard to your application for IC review of a decision made
by the Department of Communications and the Arts (the Department) on 17
November 2017 under the Freedom of Information Act 1982 (the FOI Act). 

The Office of the Australian Information Commissioner (OAIC) is currently
considering your IC review application and conducting inquiries with the
Department.

We provide the Department with three weeks to respond to our inquiries.
The matter will then be allocated to a review officer who will review the
Department’s documentation and contact you to advise you of our view on
the next appropriate steps in the matter.

 

Please note, during an IC review the OAIC will generally share the
submissions you provide with the respondent agency.

 

Request for further information

At this stage, the OAIC would also to request some further information
from you regarding the scope of your IC review application.

 

The Department has determined that documents identified within the scope
of your FOI request are exempt documents under ss 42, 47C, 47F and 47G of
the FOI Act. I am writing to confirm which of these exemptions you are
seeking review in relation to.

 

I would be grateful if you advise the OAIC of this by 23 March 2018.

 

Contact

If you would like to discuss this matter in the meantime, please contact
the Enquiries Line on 1300 363 992 and quote the reference number above.

 

Yours sincerely

 

 

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From: Ron Andruff

Delivered

Dear FOIDR,

Thank you for your email.

With respect to your query, it would be great if you can please review all of the exemptions set out in paragraph 11 of the Department's notice of decision dated 17 November 2017 (being, ss 22, 42, 47C, 47F and 47G).

If you have any further questions, please let me know.

Yours sincerely,

Ron Andruff

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From: FOIDR

Dear Mr Andruff

Thank you for your response.

Your matter is currently awaiting allocation to a case officer.

Kind regards

Carl English | Assistant Review and Investigation Officer | Freedom of Information Dispute Resolution
Office of the Australian Information Commissioner
GPO Box 5218 SYDNEY NSW 2001| www.oaic.gov.au
Phone: +61 2 9284 9745 | E-mail: [email address]

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From: Azam Bulbulia

Our reference: MR18/00043

Agency reference: FOI 20-1718

 

Dear Mr Andruff

 

I write in relation to your application for IC review of a decision made
by the Department of Human Services (‘the Department) under the Freedom of
Information Act 1982 (‘FOI Act’).

 

I note that on 17 November 2017 the Department refused access to the
document you requested pursuant to ss 22, 42, 47C, 47F and 47G of the FOI
Act.

 

Please note that this matter has been reallocated to me as review officer.
My contact details are below.

 

I am in the process of reviewing this matter and will contact you shortly
to advise on next steps.

 

Please contact me if you have any questions

 

Kind Regards

 

Azam Bulbulia | Review Officer |  FOI Dispute Resolution

Office of the Australian Information Commissioner

GPO Box 5218 SYDNEY NSW 2001 | [1]www.oaic.gov.au

Phone:  +61 2 9284 9757 | Email: [2][email address]

 

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From: Ron Andruff

Delivered

Dear Azam Bulbulia,

Thank you for this note of encouragement. I thought that my FOI had disappeared.

Standing by for the completion of your review.

Yours sincerely,

Ron Andruff

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From: Ron Andruff

Delivered

Dear Azam Bulbulia,

Thank you for taking on the requested review on our behalf.

I am reaching out to you today to ask where we are in the process as the anticipated timeline appears to have passed?

We would be grateful to receive an update from you at your soonest convenience.

Yours sincerely,

Ron Andruff

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From: Azam Bulbulia

Dear Mr Andruff

I have completed my preliminary review of your IC review application.

I am presently working on earlier matters in my case list and will attend you your application as soon as practicable.

At this stage, I am unable to provide you with an anticipated timeframe for the conclusion of your matter, however, I will keep you regularly informed of the progress.

Kind Regards

Azam Bulbulia | Review Officer
Freedom of Information
Office of the Australian Information Commissioner
GPO Box 5218 Sydney NSW 2001 | oaic.gov.au
+61 2 9284 9757 | [email address]

|

|

|

Subscribe to OAICnet newsletter

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From: Ron Andruff

Delivered

Dear Azam Bulbulia,

Thank you very much for your prompt reply. I very much appreciate getting your update and advice that you will keep me informed of your progress.

Standing by.

Yours sincerely,

Ron Andruff

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From: Azam Bulbulia


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Dear Ron

 

I have completed my review of this matter and today I requested further
submissions from the Department of Communication and the Arts
(Department).

 

Briefly, in the Department’s decision dated 17 November 2017, the
Department refused you access to the requested documents, variously,
pursuant to ss 22, 42, 47C, 47F and 47G of the Freedom of Information Act
1982 (FOI Act). Further, although not specifically addressed in its
decision, it appears that the Department also relies on the application of
s 12(1)(b) of the FOI Act regarding publicly available information.

 

I have requested further submissions from the Department to clarify some
issues concerning ss 12, 47F and 47G, which are required before I can
progress this matter further.

 

The Department is due to respond by 1 November 2018, and I will keep you
updated.

 

Kind Regards

 

[1]O A I C logo   Azam Bulbulia  |  Review
Officer

Freedom of Information

Office of the Australian
Information Commissioner

GPO Box 5218 Sydney NSW 2001  |
 [2]oaic.gov.au

+61 2 9284 9757  | 
[3][email address]
[7]Subscribe [8]Subscribe to
[4]Facebook | [5]LinkedIn | [6]Twitter |   icon OAICnet
newsletter

 

 

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From: Ron Andruff

Delivered

Dear Azam Bulbulia,

Thank you for your update. Standing by for your next communication.

Yours sincerely,

Ron Andruff

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Things to do with this request

Anyone:
Department of Communications and the Arts only: