RailCorp – investigation into the solicitation and receipt of corrupt payments from a RailCorp contractor (Operation Chaucer)

Year: 2009 Status: Completed

The ICAC investigated allegations that a former RailCorp employee, Wasim Khan, and his associates, Mohammed Ali and Tabrez Khan, engaged in corrupt conduct by attempting to solicit $200,000 over four years in return for awarding a RailCorp security guard auditing services contract.

In its report on this investigation, made public on 24 September 2009, the ICAC made findings of corrupt conduct against Wasim Khan, Mr Ali and Tabrez Khan and recommended that consideration be given to obtaining the advice of the Director of public prosecutions with respect to their prosecution for specified offences.


Findings of corrupt conduct

The ICAC has made corrupt conduct findings against Wasim Khan, Mohammed Ali and Tabrez Khan.

Recommendations for prosecutions

The Commission must seek the advice of the Director of Public Prosecutions (DPP) on whether any prosecution should be commenced. The DPP determines whether any criminal charges can be laid, and conducts all prosecutions. The Commission provides information on this website in relation to the status of prosecution recommendations and outcomes as advised by the DPP. The progress of matters is generally within the hands of the DPP. Accordingly, the Commission does not directly notify persons affected of advice received from the DPP or the progress of their matters generally.

The Commission is of the opinion that consideration should be given to obtaining the advice of the DPP with respect to the prosecution of Wasim Khan, Mohammed Ali and Tabrez Khan for specified offences.

On 12 April 2011, Wasim Khan was charged with one count of corruptly solicit a benefit contrary to section 249B(1) of the Crimes Act 1900 and one count of corruptly receive a benefit contrary to section 249B(1) of the Crimes Act 1900. On 1 September 2011, he pleaded guilty to both charges.

On 15 February 2012, Wasim Khan was sentenced to two years of imprisonment. The sentence is to be served by way of Intensive Correctional Order with the following additional conditions attached to the order:

1. To comply with any medication regime prescribed by a treating medical professional.

2. To comply as directed to attend psychological counselling.

3. To remain abstinent from alcohol.

On 15 September 2011, Mohammed Ali pleaded guilty to a charge of accessory before the fact to solicit a corrupt benefit contrary to section 249B(1) of the Crimes Act 1900. He was sentenced to home detention for a period of 12 months.

On 12 April 2011, Tabrez Khan was charged with one count of accessory before the fact to solicit a corrupt benefit contrary to section 249B(1) of the Crimes Act 1900. On 19 May 2011 a first instance arrest warrant was issued for his arrest.

Recommendations for disciplinary action

There are no recommendations for disciplinary action.

Recommendations for corruption prevention

The investigation identified inadequately trained staff as the major risk area that made it possible for the corrupt conduct to occur and the Commission makes the following five recommendations to improve RailCorp procurement systems and procedures in order to prevent future opportunities for corruption:

RECOMMENDATION 1

That RailCorp revises its procurement training for staff and contractors to explicitly address the risks for corruption and non-compliance in direct negotiations, including negotiations over scope of works.

RECOMMENDATION 2

That RailCorp establishes and publicises a way for tender evaluation committee members to obtain advice should they have a query about whether proper procedure is being followed for a tender.

RECOMMENDATION 3

That RailCorp makes it a requirement that staff and contractors receive training in both ARIBA (RailCorp's new electronic procurement system) and its new Procurement Procedures before they obtain user rights in ARIBA.

RECOMMENDATION 4

That RailCorp implements a system of random auditing to be done by senior managers of their middle managers' procurement approvals. Internal Audit should then audit the senior managers' audit. When approving officers approve orders that vary from standard procedures, penalties should be enforced.

RECOMMENDATION 5

That within two years of ARIBA becoming fully operational, a performance/operations review is undertaken to ascertain whether ARIBA assists RailCorp and individual managers to detect fraud and corruption. Copies of the final report should be sent to the Commission and the relevant Minister.

As part of the performance of its statutory functions the Commission will monitor the implementation of the corruption prevention recommendations made as a result of this investigation.

The recommendations will be communicated to RailCorp with a request that an implementation plan for the recommendations be provided to the Commission within three months of the publication of this report. The Commission will also request progress reports on the implementation of recommendations at intervals of 12 and 24 months after the publication of this report.


Implementation Plans

The implementation plan posted below has been provided by RailCorp in response to the ICAC's corruption prevention recommendations. Its appearance here is for information only and does not constitute the approval or endorsement of the plan by the Commission.

RailCorp - Implementation plan


Progress reports

The progress reports posted below have been provided by RailCorp in response to the ICAC's corruption prevention recommendations. Their appearance here is for information only and does not constitute the approval or endorsement of the reports by the Commission.

RailCorp - March 2011 quarterly progress report

RailCorp - December 2010 quarterly progress report

RailCorp - September 2010 quarterly progress report

RailCorp - June 2010 quarterly progress report

RailCorp - March 2010 quarterly progress report

 

24 month progress report

The progress report posted below has been provided by RailCorp in response to the ICAC's corruption prevention recommendations. Its appearance here is for information only and does not constitute the approval or endorsement of the report by the Commission.

RailCorp - 24 month progress report


Media Releases Witness

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Download the Witness List (PDF)

Transcripts

View all transcripts associated with this investigation. The Commission makes every effort to post the daily transcripts of its public inquiries on its website by 8:00 pm each day when possible. If the Commission sits later than 4:00 pm, the daily transcripts, particularly the afternoon session, may not be available until the next working day.

 

Exhibits Public notices

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