TransGrid - corrupt conduct associated with tendering (Operation Tambo)

Year: 2009 Status: Completed

The ICAC investigated whether Goran Pevec, an officer of the state-owned corporation TransGrid, showed corrupt favour to Domenic Murdocca and/or his firm Sage Civil Engineering Pty Ltd in return for the provision of benefits, and whether Domenic Murdocca, and others working for Sage, defrauded TransGrid in the process of tendering for and performing contractual work with TransGrid.

In its report on this investigation, made public on 9 September 2009, the ICAC made findings of corrupt conduct against Goran Pevec and Domenic Murdocca and stated its opinion that consideration be give to obtaining the advice of the DPP with respect to the prosecution of Mr Murdocca, Mr Pevec and Linda Pevec for specified offences. Six corruption prevention recommendations were made to TransGrid. 


Findings of corrupt conduct

The ICAC has made findings of corrupt conduct against Goran Pevec and Domenic Murdocca.

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 ICAC is of the opinion that consideration should be given to obtaining the advice of the DPP with respect to the prosecution of Goran Pevec, Domenic Murdocca and Linda Pevec for specified offences.

Status of prosecution recommendations

Goran Pevec

On 5 April 2012, Goran Pevec pleaded guilty to three counts of wilfully making a false statement to the Commission under section 80(c) of the ICAC Act and six counts of giving false evidence under section 87 of the ICAC Act.

On 31 May 2012, Mr Pevec was convicted and sentenced to a good behaviour bond under section 9 of the Crimes (Sentencing Procedure) Act 1999 (NSW) for twelve months for each of the two counts of the offence of wilfully making a false statement to an officer of the Commission under section 80(c) of the Independent Commission Against Corruption Act 1988 (NSW), with one further count of this offence having been placed on Form 1 (to be taken into account in the overall sentencing of the defendant).  He was also convicted and sentenced to a good behaviour bond under section 9 of the Crimes (Sentencing Procedure) Act 1999 (NSW) for twelve months and fined $2,000 (in the total amount of $8,000) for each of the four counts of the offence of knowingly giving false or misleading evidence at a hearing of the Commission under section 87 of the Independent Commission Against Corruption Act 1988 (NSW), with two further counts of this offence having been placed on Form 1.

Linda Pevec

On 9 March 2012, the DPP advised that there is insufficient evidence to proceed with any criminal charges against Linda Pevec. The Commission has accepted this advice.

Domenic Murdocca

The DPP advised that there is insufficient evidence to proceed with any criminal charges against Domenic Murdocca. The Commission has accepted this advice.

Recommendations for disciplinary action

There are no recommendations for disciplinary action.

Recommendations for corruption prevention

As part of its investigation the ICAC analysed the organisational context in which corrupt conduct occurred and has made six corruption prevention recommendations to TransGrid to help manage the identified corruption risks and help prevent the recurrence of corrupt conduct.

RECOMMENDATION 1

That TransGrid reviews its procedures relating to the circumstances in which contract variations occur to minimise the risk of contract variations being used to circumvent competitive tender processes. This review should include situations where the nature of the works falls outside of the scope of the contract.

RECOMMENDATION 2

That TransGrid undertakes periodic internal audits of its contract variations to ensure compliance with its policy and procedures relating to Recommendation 1.

RECOMMENDATION 3

That TransGrid adopts a policy on its staff providing referee reports and/or endorsements for contractors. Should TransGrid permit its staff to provide such reports, the policy should clearly set out the circumstances in which referee reports can be provided and any limitations on this practice. The policy should also be clearly communicated to all relevant staff.

RECOMMENDATION 4

That TransGrid's procurement procedures make provision for minority reports and require that any minority reports be submitted along with majority reports to the appropriate approval authority.

RECOMMENDATION 5

That TransGrid considers ensuring that all personnel who act as members on a tender evaluation committee undergo a procurement training program, and that the procurement training program includes:

  • an explanation of the roles and responsibilities of each tender evaluation committee member;
  • an explanation of the roles and responsibilities of the tender evaluation committee convenor;
  • an explanation of the Evaluation Matrix (or equivalent document) and how the tenders are scored
  • the processes involved in signing the Evaluation Matrix (or equivalent document)
  • the circumstances in which a tender evaluation committee member may decide to submit a minority report, who this report would be submitted to and the processes involved in submitting this report
  • the processes involved in preparing the report recommending the preferred tender.

RECOMMENDATION 6

That TransGrid undertakes its proposed review of policies and procedures to address the corruption risks arising from the unauthorised release of confidential information. 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 TransGrid 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 Plan

The implementation plan posted below has been provided by TransGrid 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.

TransGrid - Implementation Plan

TransGrid - Final 12 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.

 

Filename File Size KB Date pp. Time
28-04-2009 Tambo Inquiry pp. 00362-00441 at 9.22AM to 1.12PM.pdf 264 28/04/09 00362-00441 9.22AM to 1.12PM
28-04-2009 Tambo Inquiry pp. 00494-00526 at 2.07PM to 3.32PM.pdf 116 28/04/09 00494-00526 2.07PM to 3.32PM
20-04-2009 Tambo Inquiry pp.00001-00057 at 10.13AM to 12.57PM.pdf 181 20/04/09 00001-00057 10.13AM to 12.57PM
20-04-2009 Tambo Inquiry pp. 00058-00092 at 2.06PM to 3.56PM.pdf 119 20/04/09 00058-00092 2.06PM to 3.56PM
21-04-2009 Tambo Inquiry pp. 00093-00141 at 10.07AM to 12.56PM.pdf 172 21/04/09 00093-00141 10.07AM to 12.56PM
21-04-2009 Tambo Inquiry pp.00142-00184 at 2.07PM to 3.57PM.pdf 154 21/04/09 00142-00184 2.07PM to 3.57PM
22-04-2009 Tambo Inquiry pp. 00185-00234 at 10.12AM to 12.54PM.pdf 177 22/04/09 00185-00234 10.12AM to 12.54PM
22-04-2009 Tambo Inquiry pp.00235-00270 at 2.09PM to 3.51PM.pdf 133 22/04/09 00235-00270 2.09PM to 3.51PM
23-04-2009 Tambo Inquiry pp. 00271-00321 at 10.13AM to 12.58PM.pdf 177 23/04/09 00271-00321 10.13AM to 12.58PM
23-04-2009 Tambo Inquiry pp. 00322-00361 at 2.09PM to 3.53PM.pdf 137 23/04/09 00322-00361 2.09PM to 3.53PM
28-04-2009 Tambo Inquiry pp. 00442-00493 at 10.24AM to 1.04PM.pdf 172 28/04/09 00442-00493 10.24AM to 1.04PM
29-04-2009 Tambo Inquiry pp. 00527-00533 at 10.23AM to 10.35AM.pdf 28 29/04/09 00527-00533 10.23AM to 10.35AM
29-04-2009 Tambo Inquiry pp. 00534-00563 at 11.53AM to 1.03PM.pdf 99 29/04/09 00534-00563 11.53AM to 1.03PM
29-04-2009 Tambo Inquiry pp. 00564-00572 at 2.18PM to 2.32PM.pdf 34 29/04/09 00564-00572 2.18PM to 2.32PM
Exhibits Public notices

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