The NSW corruption watchdog has recommended consideration of criminal charges against another 12 people over bribery and fraud at RailCorp involving millions of dollars.
The Independent Commission Against Corruption (ICAC) today handed down its third and fourth reports from its lengthy inquiry into bribery and fraud within the state-owned corporation.
The first two reports, released last month, asked for criminal charges to be considered against six people who are collectively accused of scamming millions of dollars from RailCorp.
The investigation had "raised a significant number of corruption issues" across all areas, ICAC said.
Instead of making recommendations about RailCorp now, it would instead canvas all the corruption issues in its final report due out later this year, it said.
Today it made corruption findings against former RailCorp employees Allan Walker, Kevin Dulhunty, Paul Sventek, Ivan Stanic and eight contractors - Adam Azzopardi, William Kuipers, Michael Napier, Matthew Napier, Eric Kreichichwost, Paul Szoboszlay, Nick Kouraos and Mark Palombo.
Mr Walker was found to have received payments amounting to more than $1 million over a four-year period - half of which was for his role in falsifying plant hire dockets.
ICAC Commissioner Jerrold Cripps, QC, said Mr Walker began falsifying documents to finance a serious gambling problem.
"He was a prolific and unsuccessful gambler," Mr Cripps said in a statement.
"He gambled almost daily and suffered large losses."
The contractors involved in the scheme with Mr Walker had received millions of dollars worth of work from RailCorp during this period, he said.
Mr Sventek and Mr Dulhunty were also found to be involved and to have benefited from the scheme.
"The ICAC is of the opinion that consideration should be given to obtaining the advice of the DPP (Director of Public Prosecutions) with respect to the prosecution of Mr Walker for several offences including using a false document with intent to defraud RailCorp," it said in a statement today.
"The Commission is of the opinion that consideration should be given to obtaining the advice of the DPP with respect to the prosecution of Mr Azzopardi, Matthew Napier, Michael Napier and Mr Kuipers for offences including corruptly giving benefits to Mr Walker," it added.
ICAC said Ivan Stanic received corrupt payments that amounted to between 121,000 and $140,000 between 2001 and mid-2006 from three contracting businesses.
The businesses - run by Mr Szoboszlay, Mr Kouraos and Mr Palombo - received RailCorp work worth more than $2.9 million.
ICAC found that Mr Stanic connived with Mr Kouraos and Mr Palombo to permit them to submit inflated invoices to RailCorp.
It found that while Mr Stanic was a project supervisor for RailCorp, he accepted payments totalling at least $17,000 between 2001 and 2005 from Paul Szoboszlay in return for awarding work to his company.
"The ICAC has made findings of corrupt conduct against former RailCorp employee Ivan Stanic and contractors Paul Szoboszlay (Director of Wire and Steel Industries Pty Ltd), Nick Kouraos (Director of Anev Painting & Decorating Pty Ltd) and Mark Palombo (Principal of Delux Quality Cleaning & Property Maintenance)," it said.
"The ICAC finds that Mr Stanic engaged in corrupt conduct by accepting payments from the three above individuals in return for continuing to award RailCorp work to their businesses; telling Mr Szoboszlay what amounts Wire & Steel Industries should quote for RailCorp work; and accepting payments from Messrs Kouraos and Palombo in return for conniving with them to submit invoices to RailCorp which he and they knew were inflated to include work not done.
"The ICAC will seek the advice of the Director of Public Prosecutions (DPP) with respect to the prosecution of the above individuals for various criminal offences."
