Corruption Matters - June 2022 | Issue 59
RMS manager found corrupt for awarding over $12.2 million in work to benefit friends and himself
In a report released in May, the ICAC found that a former manager of the then-Roads and Maritime Services (RMS) engaged in serious corrupt conduct through the awarding of over $12.2 million in work to two companies owned by his friends and manipulating processes to favour and benefit those businesses and himself.
In a report released in May, the ICAC found that a former manager of the then-Roads and Maritime Services (RMS) engaged in serious corrupt conduct through the awarding of over $12.2 million in work to two companies owned by his friends and manipulating processes to favour and benefit those businesses and himself.
In its report on Operation Ember, Investigation into the awarding of contracts by employees of the former NSW Roads and Maritime Services, the Commission found that, from November 2015 to June 2016, Samer Soliman, while manager of RMS’s Heavy Vehicle Programs (HVP) Unit, misused his position to arrange for six RMS contracts worth almost $346,000 to be awarded to his friend Stephen Thammiah’s company, Novation Engineering Pty Ltd. The Commission found that Novation was actually a joint enterprise created with Mr Soliman.
Between January 2017 and August 2018, Mr Soliman also favoured the company of another friend, Ali Hamidi, who owned AZH Consulting Pty Ltd. Mr Soliman arranged for over $1.3 million in contracts to be awarded to AZH, to procure equipment and conduct studies and trials.
The Commission found that Mr Thammiah, Mr Hamidi and RMS HVP Unit business systems analyst, Jainesh (Jai) Singh, also engaged in serious corrupt conduct.
Mr Soliman, Mr Singh, Mr Thammiah and Mr Hamidi all knew each other to varying degrees prior to their involvement with RMS. They had all worked at Optus at the same time, although not necessarily in the same section, and Mr Soliman and Mr Thammiah had a close, longstanding friendship since high school. Mr Hamidi and Mr Singh formed a close friendship while working at Optus.
The Commission found that RMS had appropriate documented policies and processes relating to goods and services procurements that were known and accessible to RMS employees, and information and advice were available from a centralised procurement team. Mr Soliman’s corrupt conduct, however, was characterised by deliberate manipulation of the procurement processes.
The report observes that other public authorities should note that this investigation demonstrates that it can be quite easy for a public official to engage in serious and systemic corrupt conduct despite the presence of a detailed policy and procedural framework. “Mr Soliman’s conduct was not opportunistic – it was planned, and he manipulated controls with strategic intent,” the report says.
The Commission found that Mr Soliman did not report conflicts of interest to RMS management, and had a significant level of control over relevant RMS procurement processes; he used this control to undermine their integrity for the benefit of Novation and AZH. His ability to control or manage the relevant procurement processes was, in part, facilitated by substantially inadequate procurement governance, which resulted in opportunities to stop his corrupt activity being missed. Mr Soliman was subject to limited managerial oversight, which also resulted in missed opportunities to stop his corrupt conduct. RMS is now part of Transport for NSW (TfNSW). The Commission has made seven recommendations to assist TfNSW to prevent such conduct from recurring.
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