The NSW Independent Commission Against Corruption (ICAC) has found that two former employees of the then Roads and Traffic Authority and/or Roads and Maritime Services (RTA/RMS) engaged in serious corrupt conduct over nine years that netted them at least $7.47 million in benefits.
The RMS was created in November 2011 through a merger of RTA and NSW Maritime, the RMS was later dissolved in December 2019 and its responsibilities transferred to Transport for NSW (TfNSW).
Issuing its Investigation into the awarding of Roads and Traffic Authority and Roads and Maritime Services contracts (Operation Paragon) report, the ICAC said the former employees were aided by “lax supervision and poor managerial oversight.”
“The RTA/RMS did not conduct proper due diligence checks, which would have raised red flags and encouraged questions about the activities that were occurring,” ICAC said.
“However, even if a red flag was identified and questions asked, it was never meaningfully followed through,” it said.
“At times, order splitting occurred to ensure amounts were split so that they would be kept under certain price thresholds, thereby avoiding a different procurement process which required greater oversight.”
The Commission declared there was insufficient procurement competence, limited assurance and accountability, and inadequate record management.
It said the investigation also revealed issues with the broader control framework that were conducive to the corrupt conduct found, including inadequate responses to reported conflicts of interest, limited staff management, chaotic budget management and insufficient support for suppliers making complaints.
ICAC made nine recommendations to TfNSW, including that it reviews processes surrounding construction procurement, infrastructure programs, governance of procurement information, and its supervision of staff involved in procurement processes.
The Commission also recommended TfNSW ensure it had a robust supplier due diligence framework; assess the procurement competence of relevant employees and contractors; and strengthen controls surrounding subcontractors and its complaints management and contracts management systems.
ICAC’s 182-page report can be downloaded at this PS News link.
