RailCorp corruption 'extraordinary'

The role of the NSW Minister for Transport, and the RailCorp CEO and board, must be reviewed to "better ensure financially responsible management that would limit the opportunity for corruption", says a damning report released today by the Independent Commission Against Corruption.

The ICAC today made 40 recommendations to combat the corruption that has stripped RailCorp of more than $21 million in improperly awarded contracts and kickbacks to staff in just three years.

"The very structure of the organisation and the way it operates allows and encourages corruption," ICAC commissioner Jerrold Cripps, QC, said in the report.

"The investigation has exposed an extraordinary extent of public sector corruption," the report said.

"The investigation and findings entitle the commission to infer that the type of corruption exposed extends beyond those individuals identified in this investigation."

An ICAC statement released with the report says the very structure of the organisation allowed graft and fraud to flourish.

"The report describes record-keeping at RailCorp as shambolic and says that its form of contracting, process design, reporting arrangements, management competence, culture and oversight arrangements all contribute to endemic corruption in the organisation."

ICAC's eighth and final report on its Investigation Into Bribery And Fraud at RailCorp says the investigation "exposed an extraordinary extent of public sector corruption".

"Corrupt employees appeared to be confident that they would not be caught or if they were, that not much would happen to them," the report said.

In the seven reports that ICAC has released so far, it has recommended more than 660 charges against 33 rail staff members and contractors. It made 97 findings of corruption against 31 people.

After two years of investigation and nine weeks of hearings, the RailCorp inquiry is the biggest since ICAC was formed in 1988.

It followed six other inquiries into the NSW railways since 1992.

A major investigation 10 years ago focused on the same areas of procurement, maintenance and plant hire that formed the core of the current investigation.

But the corruption prevention mechanisms established as a result did nothing to prevent the same unethical behaviour from staff. It also appears to have failed to limit relationships forming between private contractors and the staff who sign off on sometimes lucrative contracts.

[Sources say] senior Government officials have been working on a formal response by cabinet for some months.

The last time there was a major inquiry into RailCorp was in the wake of the Waterfall derailment. In the fall-out from the McInerney report into the accident, two senior staff were axed, but the guillotine never fell on another six who were under review.

"Ultimately, responsibility for preventing corruption in this critical public organisation is shared by RailCorp's chief executive officer, the RailCorp board and the Minister for Transport," the statement says.

"It is incumbent on them to break with past practices and improve oversight and action regarding corruption prevention.

"The commission recommends that the responsibilities of the proposed RailCorp Advisory Board, the RailCorp CEO and the Minister for Transport be reviewed to determine whether they need to be restructured to better ensure financially responsible management that would limit the opportunity for corruption."

Quote: When will the ICAC investigate rorts into Housing New South Wales? Most residents could inform the ICAC of some of the already known contractors who have very lucrative contracts that are endlessly repairing things that endlessly break - instead of fixing things properly and more permanently like, excessive fire services, checks and balances. Sending five people a year to check on 5 different things and automatic doors which break sometimes four or five times per week - doors that could be made less automatic and that don't break so many times every week.

Related:

Rail rorts: ICAC recommends charges
The Independent Commission Against Corruption (ICAC) has found another four RailCorp employees received large cash payments for awarding work to favoured contractors

Something is rotten in the state of NSW
IN 1998 the lid was lifted on the corrupt world of NSW railways, revealing that supplying prostitutes could win you a contract, fake medical certificates signed by a dead doctor would get you a day off work, and you could claim overtime while playing golf.

Driver gets $55K payout after affair with MP

The Tasmanian Premier, David Bartlett, has announced a settlement with the driver who had an affair with former Cabinet Minister, Paula Wriedt.

Ms Wriedt attempted to commit suicide in August when she learned the driver, Ben Chaffey, had lodged a claim with the Government.

Mr Chaffey's lawyers had threatened to pursue a sexual harassment claim.

The Premier says Mr Chaffey has agreed to a one off payment of $40,000, as well as reimbursement for up to $15,000 in legal and medical fees.

Mr Chaffey will also be offered another job in State Government but on a lower salary.

Ms Wriedt was sacked from the front bench six weeks after her suicide attempt.

She is still on leave and has not announced if she is returning to Parliament.

Related:

Tas Premier sacks Wriedt
Tasmanian Premier David Bartlett has sacked Paula Wriedt from his Cabinet.

End 'witchhunts' - Whistleblowers Australia

Whistleblowers Australia is calling for greater protection for people who speak out about wrongdoing in government departments and agencies at a federal parliamentary inquiry in Sydney today.

The House of Representatives Legal and Constitutional Affairs Committee will also be hearing from the New South Wales Independent Commission Against Corruption, the Police Integrity Commission and the Australian Press Council.

In Australia, there are no uniform laws to protect public interest disclosures.

One of the more recent cases of whistleblowing centred on Allan Kessing, a public servant who leaked classified reports exposing airport security breaches.

The leak prompted a big inquiry into crime and security at Australia's airports and led to a $200 million overhaul of procedures, but the whistleblower himself was given a nine-month suspended jail sentence for his actions.

The president of Whistleblowers Australia, Peter Bennett, says there should be an independent agency to oversee complaints.

"Whistleblowers being able to stop malpractice, misconduct or public waste would in itself just pay for a whistleblowing commission," he said.

He has praised the Federal Government for initiating the inquiry.

"For the last 12 years there has actually been witchhunts for whistleblowers," he said.

The inquiry has already heard from a number of agencies in Canberra and Melbourne, including the Australian Federal Police and the Commonwealth Ombudsman and will continue in Brisbane tomorrow.

Related:

Whistleblowers hung out to dry: report
A national study led by Griffith University says fewer than 2 per cent of public interest whistleblowers get support from their government agency.

Inquiry to address whistleblower protection
A federal parliamentary committee is to hold an inquiry into protection for whistleblowers in the public service.

Rail rorts: ICAC recommends charges

The ICAC has recommended the DPP consider charges over corruption at RailCorp.

The Independent Commission Against Corruption (ICAC) has found another four RailCorp employees received large cash payments for awarding work to favoured contractors.

The findings relate to kickbacks in exchange for RailCorp contracts dating back to 2001.

The commission has found former RailCorp employees Allan Walker, Paul Sventek and Kevin Dulhunty received more than $1 million in improper payments.

It says they falsified plant hire dockets with several contractors and received payments in return.

The ICAC has found Allan Walker used $500,000 mainly to finance a gambling habit.

In a separate report, the commission found former RailCorp employee Ivan Stanic received at least $120,000 for awarding work to favoured contractors.

In both cases, the ICAC has recommended the Director of Public Prosecutions (DPP) consider charges against the former employees and the contractors.

In some cases, the commission says all parties knew the work would never be done.

There have now been four ICAC reports into bribery and corruption at RailCorp.

More reports are due before it makes final recommendations on reforming RailCorp's structure to prevent future corruption.

Boy housed at DOCS office 'last resort'

The New South Wales Department of Community Services (DOCS) has confirmed a violent nine-year-old boy spent four nights sleeping at its Wollongong office because of a lack of suitable accommodation.

DOCS says the boy was placed in its care just over a week ago because his mother could no longer manage his outbursts.

The department initially paid for him to stay in a motel, under the supervision of a caseworker, but he lashed out, damaging property, and the manager demanded he leave.

He was taken to DOCS' Wollongong office last Saturday where he spent four nights.

The executive director of Operational Support for DOCS, Helen Freeland, says the decision was a last resort.

"This is exceptional circumstances and it really was a decision taken only because there were no other placement options available at the time," she said.

"While we think this is very, very undesirable and exceptionally rare, it was the only option available to our caseworkers at the time."

Ms Freeland says the situation has since been resolved.

"The good news is that the boy is now safe with a foster carer, and DOCS is looking at strategies to make sure the situation doesn't happen again," she said.

Related:

Taking the scalpel to DOCS
"People assume because a child is in the child protection system he or she is getting help, but usually they don't get anything, and certainly not the intensive family support they need," says Jane Woodruff, chief executive of Burnside, a non-government child welfare agency.

Something is rotten in the state of NSW

IN 1998 the lid was lifted on the corrupt world of NSW railways, revealing that supplying prostitutes could win you a contract, fake medical certificates signed by a dead doctor would get you a day off work, and you could claim overtime while playing golf.

Ten years later it seems little has changed in RailCorp and the stench of corruption is slowly engulfing the NSW public sector.

In past 12 months the Independent Commission Against Corruption has held inquiries into three State Government agencies - the Roads and Traffic Authority, RailCorp and the Department of Housing; the NSW Fire Brigades has joined the list this week.

The commission has begun investigating claims that the former brigade project managers Christian Sanhueza and Clive Taylor awarded $6 million in contracts between 2005 and 2007, using fake tenders to give contracts to shelf companies controlled by Mr Sanhueza.

Contracts were then sub-contracted to cheaper building firms, allegedly netting the pair almost $2.5 million.

Ken Phillips, the director of the work reform unit at the Institute of Public Affairs, said the NSW public service was "rotten to the core".

"The governments in Victoria, South Australia and Queensland are pretty clean governments but NSW has never got over the rum rebellion," Mr Phillips said.

"NSW is very tribal and you have a mates culture in NSW that does not belong in any other state, which leads to an acceptance of sanctified corruption."

The fire brigade allegations are the latest to tarnish the public service and follow ICAC uncovering $22 million in fraudulent RailCorp contracts being awarded, including $3 million in kickbacks to rail staff, in one of the biggest investigations in the commission's history.

The inquiry, the seventh corruption investigation of the NSW railways since 1992, also revealed a welding manager defrauded RailCorp of $4.28 million and a contracts officer helped herself to $650,000. They were among eight people recommended for prosecution.

RailCorp was also under the corruption spotlight last year when it was discovered that an engineer, Said Marcos, awarded air-conditioning contracts to his mates, landing himself at least $710,000. But the problems are not confined to the railways.

In January this year, the commission investigated a state housing official, Douglas Norris, who took bribes to let people jump the public housing waiting list.

He also allowed homes to be used by drug dealers. It emerged that Mr Norris operated a bribes-for-accommodation scheme with alleged drug dealers and other housing tenants who acted as middlemen. Tenants paid between $500 and $700 for a bedsit or between $1500 and $1700 for a two- or three-bedroom flat.

And last year a Roads and Traffic Authority registry manager, Paul McPherson, was investigated by the commission after he provided at least 100 motorists the answers to their L-plate licence tests and gave advance warning of the route of their driving tests. False email records were also created to allow migrant New Zealanders to obtain NSW drivers' licences as part of the scam.

At least 12 public servants or contractors are facing criminal charges for their roles in various corrupt activities, and so widespread is the problem in RailCorp that the massive bureaucracy is struggling to implement the internal reforms required to fix its problems.

In a parliamentary inquiry into ICAC last month, the commissioner, Jerrold Cripps, said RailCorp had "flooded" the commission with work yet the Government was often extremely slow or had failed to implement the recommendations handed down by the commission.

"The perception is that we keep exposing it and nothing happens," Mr Cripps told the inquiry.

Rolling strikes hit SA schools

Nearly 150 northern suburbs schools in Adelaide are closing for half a day as teachers start another round of a prolonged campaign for higher pay and a different school funding model.

State schools will be hit by rolling strikes throughout the week and there are threats to maintain the rage until the state election.

Teachers last held a strike in June, but the South Australian Government refused to budge on demands for a 21 per cent pay rise, offering less than half that, over three years.

It also refuses to withdraw a school funding model the union rejects.

SA Industrial Relations Minister Paul Caica is in the protesters' sights.

"They'll be at my office this week and I look forward to having my staff greet them with a cup of tea," he said.

There are 148 schools and pre-schools closed in the northern suburbs until the afternoon.

Opposition education spokesman David Pisoni says it will be a wasted learning day.

"My guess is many of the students won't be there for the afternoon and what impact will that have on their attendance records?" he said.

Adelaide western suburbs schools will have stoppages on Tuesday, the eastern suburbs and Mitcham area on Wednesday and the southern suburbs on Thursday.

More action possible

Australian Education Union official Correna Haythorpe says it could be an issue until the next state poll.

"We would hope to see a resolution to the dispute sooner rather than later but if we need to take this matter right up to the next state election then that's what will happen," she said.

Mr Caica doubts that will happen.

"I don't believe that there will be industrial action right up until the next election and we will resolve these issues and the best way of doing that is ensuring that we continue to negotiate and we continue to talk and we do so in good faith," he said.

The union warns there could be further strikes this school term, including full-day or two-day strikes.

Parents are advised to contact their children's schools for more information about closures.

Harbour Bridge displays public sector anger

Hundreds of public sector workers have rallied outside the New South Wales Government's Sydney offices as part of a state-wide day of action against its 2.5 per cent capped pay rise offer.

Police are refusing to issue fines for minor offences as part of the day of action, which also involves firefighters and teachers.

Roads and Traffic Authority (RTA) workers have unfurled a banner from the Sydney Harbour Bridge to draw attention to the anger.

All state departments are banning communication with ministers or ministerial officers.

Unions NSW secretary John Robertson told the rally the Government needed to pay frontline workers more because the offer was far below the inflation level.

"I remember Morris Iemma's election campaign: 'Better services for the people of NSW'," he said.

"Well, you don't deliver better services if you are not paying people a decent wage."

Firefighters have also taken part a separate rally at east Darling Harbour.

Protests have also been held in Wollongong and outside Treasurer Michael Costa's Newcastle office.

The workers, including police officers, firefighters and teachers, say the offer is far below the inflation level.

Fury as DOCS 'lose' girl

Missing ... Lauren Ryall, 13.Unfortunately she did not go to the agreed destination and in hindsight there may have been a more appropriate response for this child

The Department of Community Services says it will review its procedures after a 13-year-old girl it placed on a train alone from Parramatta to Dunmore, near Wollongong, vanished.

Lauren Maree Ryall was reported missing on Monday afternoon after she failed to arrive at her destination. Police today said she had still not been found.

DOCS caseworkers had dropped the girl off at Parramatta station about 1.40pm on Monday. She was given a train ticket and lunch money, said Helen Freeland, DOCS executive director for operations.

"Lots of 13-year-olds travel on their own on the train," she said.

But her mother, Judith, said Lauren should not have been left to travel alone.

"It should never have happened it should never happen to any child," she said.

"Now my child is missing and DOCS have since told me that they can't do anything to help look for her because it's now in the hands of the child protection agency and police."

DOCS director general Jenny Mason said it was working with police to find Lauren as soon as possible.

"Unfortunately she did not go to the agreed destination and in hindsight there may have been a more appropriate response for this child," Ms Mason said.

"We are looking at our procedures and policy to minimise the chances of this happening again."

Judith said Lauren had called her on Tuesday night to say she was with a friend in Wyong. But Lauren hung up after less than two minutes when she found out police were looking for her, Judith said.

Lauren had travelled to Wyong with a girl, who had also been placed on the train at Parramatta by DOCS on Monday.

She had been placed in DOCS' care at the weekend after returning to her Wollongong home from a friend's house and finding her mother missing.

"She had gone out on Friday, I'd given her permission to go to a friend's place [and] I'd come to my cousin's house," said here mother.

"Lauren didn't realise I was at my cousin's place and gave herself to police on Sunday night."

Police were duty-bound to report the matter to DOCS, Judith said.

Lauren's parents were separated, and her father lives in Queensland.

Lauren's mother said she had previously contacted DOCS to help "straighten my family out".

But she was upset DOCS had placed her daughter on the train alone.

"If I can just save one child or one parent what I've been through in the last 48 hours, all of this would be worth it," she said.

The furious father of the 13-year-old girl says the organisation has not even contacted him.

Lauren's father, John Ryall, said police had told him they knew "roughly'' where Lauren was.

"It's a matter of time before they get her,'' he said.

However, he remained furious at what had happened.

"They (DOCS) neglected to tell us for two days that [Lauren] was with a known runaway 15-year-old girl, I had to find that out through the police,'' Mr Ryall said from Mackay, where he lives with his 14-year-old son.

"I'm not really comforted with the company she's in. Every night I go to sleep and I don't know if these people are into drugs or sex.''

Anger

Mr Ryall struggled to contain his anger when asked how he felt about DOCS letting his daughter board a train alone.

"I'm a crane driver and we've got a duty of care to people at work. If I put someone in that much danger I could lose my job.

"I want her safe and then I'm going to take these people apart. I'm going to write representations against DOCS, I'll need some legal help here.

"They're not getting away with this crap. She could be dead. I know Sydney.

"At one stage I thought I'd never see her again. It's sheer luck for DOCS people she's still living and breathing.''

Mr Ryall said it had been agreed some weeks ago that Lauren would move to Mackay to live with him.

DOCS contacted Mr Ryall on the weekend after Lauren entered its care, he said.

"They were going to arrange for her to be kept until she could be sent up here to North Queensland to be with me,'' he said.

"Next thing I hear [from Lauren's mother, Judith] DOCS had put her on a train.

Haven't heard a word

"I haven't heard a word from DOCS [since Lauren went missing], I haven't even gotten a courtesy phone call.''

He said he would resist any moves by DOCS to place Lauren in foster care after she is found.

"Once she's checked out medically, I don't want her anywhere near DOCS. I don't trust DOCS.

"Every minute she's missing, that's a minute of my life when my heart stops, I'm crying myself at night, dreaming about her when she was a little girl.

"She's still a little girl.''

Ms Freeland said: " The choice that our caseworkers have to make is do they spend a whole day either driving her home or taking her by train or do they go out and respond to the urgent cases that have come over the weekend, and these are very difficult choices that we make every day."

Updated 6:14pm (AEST)

Police say she was found at about 11:30am AEST today on a train heading to Cronulla.

They say she is safe and well.

Related:

DOCS insiders blow whistle on tragedy
DOCS workers have detailed a catalogue of failures that have left at-risk children in unsafe families and put staff in danger, as officers struggle with crippling vacancies in a department top-heavy with managers and with a dysfunctional records system.

Premier outlines a caring state

The Premier, Paul Lennon has committed to halving the number of homeless people in Tasmania by the end of 2010, as well as tackling child abuse and social disadvantage.

Mr Lennon told Parliament the Government will fight poverty, mental illness and family breakdown with a Social Inclusion Unit.

A former director of the Catholic Social Welfare Commission will work with the unit, which will be in the department of Premier and Cabinet.

The Tasmanian Council of Social Service has welcomed the move, with the chief executive, Tom Muller saying the unit needs a clear focus.

"From our perspective a social inclusion unit has got to be driving a government agenda to tackle poverty and disadvantage," he said.

The Premier also appointed a housing expert to advise the Government on how to reduce homelessness.

Roseanne Haggerty founded the not for profit housing organisation Common Ground Community in New York, and has also worked to combat homelessness in Adelaide.

Mr Lennon says his first objective will target emergency housing and people who have no home.

The Government recently added $60 million to its public housing fund.

Anglicare's chief executive, Chris Jones, wants an urgent start on halving the number of homeless Tasmanians.

"We need that to happen quickly," he said.

"We need initiatives that will lead to keys to people's homes soon."

Mr Lennon also announced a commitment to reducing the number of children on care and protection orders, as well as increasing literacy and numeracy levels.