Following a public inquiry, the NSW Independent Commission Against Corruption (ICAC) has found former Inner West Council (IWC) Senior Project Engineer Tony Nguyen was able to engage in corrupt conduct that resulted in contracts at times totalling more than $1 million being awarded to businesses with which he had undisclosed associations.
The report, released this week, details the investigation made by the Commission into Downer Project Managers and other private contractors tendering for subcontracts on Transport for NSW (TfNSW) projects within the Transport Access Program and New Intercity Fleet Program.
The report found that the Glenfield Transport Interchange multi-storey carpark rectification works project in 2014 was the first time Nguyen marked up costs for a public project as wellas noting how he overestimated project costs by $125,000 and split the profits with Nima Abdi and Raja Sanber, two TfNSW employees who partly owned ASN Contractors Pty Ltd with Nguyen, the company the contract was handed to.
ICAC says that Nguyen engaged in a number of elaborate collusive tendering schemes with multiple IWC subcontractors between 2016 and 2020, with which he had an undeclared association. The formation of the Inner West Council, amalgamated from the former Leichhardt, Ashfield and Marrickville Councils led to ineffective organisational systems, which contributed to control deficiencies at Council. This contributed to Mr Nguyen being able to engage in his schemes, which involved the awarding of IWC contracts to companies that were owned by his friends.
RJS Infrastructure Group, founded by Nguyen, Abdi and Downer employee Abdal Aziz in 2018, was intended to be used to tender for Downer subcontracts on TAP and NIF projects. These included projects at various train stations including Victoria Street (Maitland), Central, Lithgow, Kingswood, North Strathfield, Wollstonecraft, Banksia and Birrong.
The Commission says it found that total budget estimates or relevant projects were overestimated; confidential procurement-related information was inadequately controlled; and TfNSW did not enforce contractual subcontracting requirements.
“The Commission has made nine corruption prevention recommendations to TfNSW to help enhance TfNSW’s systems and processes in these areas including: that TfNSW conducts a detailed risk assessment regarding information security related to projects utilising the managing contractor framework and identifies and implements controls to enhance the security of project information; and that TfNSW’s infrastructure and place division develops a tailored corruption awareness course for its staff that addresses corruption risks in its projects,” a statement from the Commission reads.
“The Commission has made seven corruption prevention recommendations to IWC, including that it reviews its management of supplier panels to ensure that panels address business needs, panelled suppliers are skilled and experienced, and the operation and membership of panels is periodically reviewed.
“The Commission also recommends that the NSW Government considers a debarment scheme to assist public authorities to identify suppliers that have had previous issues with misconduct or breaches of relevant requirements.”
The Commission says it now seeks the advice of the Director of Public Prosecutions (DPP) on whether any prosecution should be commenced.
