Two mid-level public servants who rigged tenders and inflated contracts for Victorian public transport projects in effect stole taxpayers’ money and damaged public confidence in the bureaucracy, the chief of Victoria’s anti-corruption watchdog said.
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The alleged corrupt conduct also deprived the department of funds that should have been spent on transport infrastructure, Independent Broad-based Anti-corruption Commission chief Stephen O’Bryan, QC, said.
Barry Wells, a project officer at Public Transport Victoria, and his former colleague in the Department of Transport, Albert Ooi, are being investigated by IBAC over allegations they awarded $25 million in contracts to businesses they controlled, and diverted about $3 million into personal accounts, from 2006 until late 2013.
The money, which Mr Wells and Mr Ooi told the hearing they split 50/50, was spent on overseas properties, luxury goods and Mr Wells’ greyhound interests, among other things.
''I take it you appreciate, Mr Wells, that the corruption being exposed in these public examinations is completely unacceptable in terms of not only waste of public resources, but the impact on legitimate businesses who missed out on profits?'' Mr O’Bryan asked on the final day of phase one of a public hearing for IBAC’s investigation, called Operation Fitzroy.
''I fully understand what you're saying, commissioner,'' Mr Wells said.
''You of course accept, don't you, that the process by which you were able to inflate or to have contract prices inflated for the purposes of ensuring returns to you obviously was a direct cost to the public purse?'' Mr O’Bryan asked.
''Correct,'' Mr Wells said.
The investigation has also heard from contractors who were willing to collude with Mr Wells and Mr Ooi and give kickbacks in exchange for department work.
Mr Wells told the hearing on Tuesday that a culture within the department of turning a blind eye to improperly close relationships between staff and contractors helped him get away with his alleged corrupt conduct for so many years.
He also alleged that he might not have been the only department employee to have improperly awarded work to a connection. Metlink signage had been done by a boss’ brother and a regional manager’s brother-in-law had built shelters, he said.
''There were ... things that did happen,'' he said. “People might have a friend at the council and they distributed money to that council more than others.''
Mr Wells promised to elaborate on his allegations in private.
Mark Wild, the chief executive of Public Transport Victoria, has been called to give evidence at the investigation later this month, along with three other department staff.
The second phase of Operation Fitzroy will look at systems and controls that existed at the time the alleged cash for contracts scams went on.
At the investigation’s conclusion, IBAC may submit its findings and recommendations in a report to Parliament and may refer the case to another authority, such as the Office of Public Prosecutions.
