Investigation into the awarding of RTA and RMS contracts (Operation Paragon)

Summary

Findings 15

Allegations are not findings. A commission's finding or opinion of corrupt conduct or misconduct is not a finding that a person is guilty of a criminal offence, and the commissions say so in their reports.

1. serious corrupt conduct

   Finding

   The Commission found that Mr Dubois engaged in serious corrupt conduct by:

   Report, page 16, Summary of investigation and outcomes

2. serious corrupt conduct

   Finding

   The Commission found that Mr Steyn engaged in serious corrupt conduct by:

   Report, page 17, Summary of investigation and outcomes

3. serious corrupt conduct

   Finding

   The Commission found that Mr Chahine engaged in serious corrupt conduct by: • between about mid-2010 and mid-2019, in concert with Mr Hadid, providing benefits to the value of at least $5.549 million to Mr Dubois, and on behalf of Mr Dubois, as a reward for Mr Dubois misusing his public official position with the RTA/RMS to award approximately $21 million worth of RTA/ RMS work to companies owned or controlled by Mr Chahine and Mr Hadid, namely, Complete Building Fitout, CBF Projects, Euro Civil and OzCorp Civil (chapter 2) • between about December 2012 and November 2017, in concert with Mr Hadid and Mr Dubois, providing benefits to the value of approximately $114,121 to and on behalf of Mr Steyn, by way of payment of goods and services associated with construction at Mr Steyn’s house, in return for Mr Steyn misusing his public official position with the RMS to allow the awarding of work to companies owned or controlled by him and Mr Hadid, namely, CBF Projects, Euro Civil and OzCorp Civil (chapter 14).

   Report, page 18, Summary of investigation and outcomes

4. serious corrupt conduct

   Finding

   The Commission found that Mr Hadid engaged in serious corrupt conduct by: • between about mid-2010 and mid-2019, in concert with Mr Chahine, providing benefits to the value of at least $5.549 million to Mr Dubois, and on behalf of Mr Dubois, as a reward for Mr Dubois misusing his public official position with the RTA/RMS to award approximately $21 million worth of work to companies owned or controlled by Mr Chahine and Mr Hadid, namely, Complete Building Fitout, CBF Projects, Euro Civil and OzCorp Civil (chapter 2) • between about December 2012 and December 2018, providing benefits to and on behalf of Mr Steyn to the value of approximately $238,121 (being approximately $114,121 provided in concert with Mr Chahine by way of payment for goods and services associated with the construction of Mr Steyn’s house and $124,000 for the purchase of a white Mercedes C63 for Mr Steyn’s use), in return for Mr Steyn misusing his public official position with the RMS to allow the awarding of substantial work to companies owned or controlled by him and Mr Chahine, namely, CBF Projects, Euro Civil and OzCorp Civil (chapter 14).

   Report, page 18, Summary of investigation and outcomes

5. serious corrupt conduct

   Finding

   The Commission found that Mr Taha engaged in serious corrupt conduct by: • between April 2011 and November 2012, paying at least $183,700 to Mr Dubois, as a reward for Mr Dubois misusing his public official position with the RTA/RMS, to award approximately $1.468 million worth of RTA/RMS work to his company, TTS Group, and to MWK Developments (which received $224,000 of RTA/RMS work), a company jointly controlled by him and Mr Dubois (chapter 3).

   Report, page 18, Summary of investigation and outcomes

6. serious corrupt conduct

   Finding

   The Commission found that Mr Rifai engaged in serious corrupt conduct by: • in July 2011, paying $63,800 to Mr Dubois as a reward for Mr Dubois misusing his public official position with the RTA to award $213,400 worth of RTA work to Mr Rifai’s company, UDE Group (chapter 4).

   Report, page 18, Summary of investigation and outcomes

7. serious corrupt conduct

   Finding

   The Commission found that Mr Najjarin engaged in serious corrupt conduct by: • in June 2011, paying $50,180 to Mr Dubois as a reward for Mr Dubois misusing his public official position with the RTA to award $219,340 worth of RTA work to Mr Najjarin’s company, BMN Electrical, between 2010 and 2011 (chapter 5).

   Report, page 18, Summary of investigation and outcomes

8. serious corrupt conduct

   Finding

   The Commission found that Abdula Nachabe engaged in serious corrupt conduct by:

   Report, page 18, Summary of investigation and outcomes

9. serious corrupt conduct

   Finding

   The Commission found that Gamele Nachabe engaged in serious corrupt conduct by: • between 23 January 2012 and 12 October 2012, in concert with Abdula Nachabe, paying $131,242.90 to Mr Dubois as a reward for Mr Dubois misusing his public official position with the RMS to award, between 10 October 2011 and 12 October 2012, approximately $496,847.55 worth of RMS work to Senai Steel, a company owned and controlled by him and Abdula Nachabe (chapter 6).

   Report, page 19, Summary of investigation and outcomes

10. serious corrupt conduct

    Finding

    The Commission found that Hassan Alameddine engaged in serious corrupt conduct by: • between 21 September 2011 and 18 June 2019, making significant cash and/or cheque payments of no less than $515,870, in addition to substantial cash payments, to Mr Dubois and on behalf of Mr Dubois as a reward for Mr Dubois misusing his public official position with the RTA/ RMS, to award, between 21 September 2011 and 18 June 2019, approximately $11,017,116 worth of work to Areva Corp, Seina Group and EPMD, companies owned or controlled by Hassan Alameddine (chapter 7).

    Report, page 19, Summary of investigation and outcomes

11. serious corrupt conduct

    Finding

    The Commission found that Mr Goldberg engaged in serious corrupt conduct by: • between 22 February 2013 and 29 July 2013, making cash payments of approximately $200,000 to Mr Dubois as a reward for Mr Dubois misusing his public official position with the RMS to arrange for the awarding of $1,089,935 worth of RMS work to MJ Wilsons, a company under Mr Goldberg’s control (chapter 8).

    Report, page 19, Summary of investigation and outcomes

12. serious corrupt conduct

    Finding

    The Commission found that Mr Rahme engaged in serious corrupt conduct by: • between approximately December 2011 and June 2018, providing benefits to the value of approximately $74,000 to Mr Steyn as a reward for Mr Steyn misusing his public official position with the RMS to arrange for the awarding of approximately $702,240 worth of RMS work to Lancomm, a company controlled by Mr Rahme (chapter 11).

    Report, page 19, Summary of investigation and outcomes

13. serious corrupt conduct

    Finding

    The Commission found that Mr Alexander engaged in serious corrupt conduct by: • between about February 2013 and March 2019, in concert with Mrs Alexander, providing benefits to the value of at least $391,452.13 to Mr Steyn, and on behalf of Mr Steyn, as a reward for Mr Steyn misusing his public official position with the RMS to award approximately $1,627,172.97 worth of RMS work to AA Steel, a company owned and controlled by Mr Alexander and Mrs Alexander (chapter 12).

    Report, page 19, Summary of investigation and outcomes

14. serious corrupt conduct

    Finding

    The Commission found that Mrs Alexander engaged in serious corrupt conduct by: • between about February 2013 and March 2019, in concert with Mr Alexander, providing benefits to the value of at least $391,452.13 to Mr Steyn, and on behalf of Mr Steyn, as a reward for Mr Steyn misusing his public official position with the RMS to award approximately $1,627,172.97 worth of RMS work to AA Steel, a company owned and controlled by Mrs Alexander and Mr Alexander (chapter 12).

    Report, page 19, Summary of investigation and outcomes

15. serious corrupt conduct

    Finding

    The Commission found that Mr Masters engaged in serious corrupt conduct by: • between approximately December 2016 and June 2019, providing benefits to the value of no less than $40,268.87 to Mr Steyn as a reward for Mr Steyn misusing his public official position with the RMS to arrange for the awarding of a significant amount of RMS work to S A Masters, a company controlled by Mr Masters (chapter 13).

    Report, page 19, Summary of investigation and outcomes

Recommendations 9

1. Recommendation 1

   That TfNSW reviews its processes surrounding construction procurement to ensure that planning of minor works: is based on a meaningful analysis of need properly considers relevant market(s), including the existence of relevant panels of suppliers or prequalification schemes is guided by an appropriately detailed procurement strategy, with controls to avoid the splitting of work is only conducted in accordance with its delegation framework.

   Roads and Maritime Services – allegation concerning two former employees (Operation Paragon), Recommendations for corruption prevention

2. Recommendation 2

   That TfNSW ensures that it has a robust supplier due diligence framework that includes: routinely obtaining full ASIC records of new suppliers routinely conducting internet searches on new suppliers further due diligence checks being conducted on a risk-basis due diligence checks being conducted by an individual processes to follow up supplier red flags in a meaningful manner.

   Roads and Maritime Services – allegation concerning two former employees (Operation Paragon), Recommendations for corruption prevention

3. Recommendation 3

   That TfNSW strengthens its controls surrounding subcontractors and makes any necessary enhancements to ensure that it monitors the role of subcontractors throughout the construction procurement process.

   Report, page 23

4. Recommendation 4

   That TfNSW develops and implements a plan to: assess the procurement competence of relevant TfNSW employees and contractors who perform procurement activities, making allowance for the fact that different activities may require different competencies, and rectify any competency deficits adopt mechanisms to ensure that staff with new procurement responsibilities are competent.

   Roads and Maritime Services – allegation concerning two former employees (Operation Paragon), Recommendations for corruption prevention

5. Recommendation 5

   That TfNSW reviews its governance of procurement information to ensure that accurate and completed records are kept.

   Report, page 23

6. Recommendation 6

   That TfNSW reviews supervision of staff involved in procurement processes to ensure that managers are alert to, and aware of, red flags of misconduct, and act upon them appropriately.

   Report, page 23

7. Recommendation 7

   That TfNSW strengthens its governance of change management processes to ensure that the following are addressed: potential structural weaknesses that might arise the effect of change on supplier markets, including knowledge of potential suppliers adequacy of supervisor and management handovers that may be required when accountabilities change (whether these relate to oversight of an individual or a function).

   Roads and Maritime Services – allegation concerning two former employees (Operation Paragon), Recommendations for corruption prevention

8. Recommendation 8

   That TfNSW reviews its infrastructure programs to ensure that the new policy/framework requirements for construction procurements (regardless of asset value) include an appropriate level of assurance and compliance mechanisms to address the systemic risks identified in this investigation.

   Report, page 173

9. Recommendation 9

   That TfNSW strengthens its complaints management and contracts management systems to ensure that: there is clear and easy access for suppliers to report suspected corrupt conduct by TfNSW employees, including their designated TfNSW project and/or contract manager adequate processes exist to manage allegations of corrupt conduct raised by suppliers.

   Roads and Maritime Services – allegation concerning two former employees (Operation Paragon), Recommendations for corruption prevention

Published responses 2

• 12 month progress report - Transport for NSW

  Progress report

• Action Plan - Transport for NSW

  Action plan

Official documents 2

• Investigation into the awarding of RTA and RMS contracts (Operation Paragon)

  Report · 188 pages

  Document details

  Role

  Report

• recommendations for prosecutions (pdf)

  Recommendations

  Document details

  Role

  Recommendations

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