Fallout from Leighton may hit UGL plans
It is believed Mr Waugh had been hired directly by the UGL board and was intended to take over as the chief executive of the engineering group following the spin-off of its property management services arm DTZ, which is slated for fiscal 2015.
A spokesman for UGL said discussions had not yet been finalised over the future status of Mr Waugh with the company.
The talks follow the resignation of two other former senior Leighton figures - David Stewart and David Savage- from their positions as the chief executive of Laing O'Rourke Australia and as a director of British construction outfit Keller, respectively, in recent days.
Mr Waugh, Mr Stewart and Mr Savage were formerly associated with Leighton when it was run by Wal King and engaged in activities which have raised a series of governance issues over alleged bribes.
Mr King remains a director of two public companies, Coca-Cola Amatil and Ausdrill.
Those companies refused to be drawn into the controversy surrounding Mr King's fitness to remain a director in the wake of the allegations about Leighton's activities when he was the chief executive.
Coca-Cola Amatil and Ausdrill said they had "no comment" when asked whether the directorship of Mr King was under review.
Mr King is also a director of the Garvan Research Foundation board, the fund-raising arm of the Garvan Institute of Medical Research. A spokeswoman said it had no comment to make.
Mr King has denied any allegations of wrongdoing.
At its annual shareholder meeting on Wednesday, global consultant engineer WorleyParsons told shareholders it had "zero tolerance of corrupt practices", pointing out it had auditing and staff training to ensure it did not engage in these practices.
Earlier this week, UGL extended the contract of its chief executive, Richard Leupen, until fiscal 2015 as part of its reorgaUnnisation, with Mr Waugh intended to lead the independently listed engineering business.
Frequently Asked Questions about this Article…
Russell Waugh is a senior employee hired by the UGL board who was expected to take over as chief executive of its engineering group after the planned DTZ spin-off. His future with UGL was under negotiation because he is a former senior Leighton employee, and that background has attracted scrutiny amid broader concerns about Leighton-related governance issues.
The fallout from allegations linked to former Leighton activities has led to negotiations over senior appointments such as Russell Waugh. That uncertainty could complicate UGL's leadership transition and its plan to spin off the property management arm DTZ (slated for fiscal 2015), since Waugh was intended to lead the independently listed engineering business.
Two former senior Leighton figures resigned recently: David Stewart, who stepped down as chief executive of Laing O'Rourke Australia, and David Savage, who resigned from a directorship at British construction firm Keller.
The article refers to activities during the period when Wal King ran Leighton that have raised governance issues related to alleged bribes. Those allegations have prompted scrutiny of people formerly associated with Leighton.
Wal King remains a director of Coca-Cola Amatil and Ausdrill and also sits on the Garvan Research Foundation board. Coca-Cola Amatil, Ausdrill and the Garvan fundraising arm declined to comment when asked whether his directorships were under review, and Mr King has denied any wrongdoing.
A UGL spokesman said discussions had not yet been finalised over Mr Waugh's future status with the company, indicating negotiations were continuing at the time of the article.
At its annual meeting, WorleyParsons told shareholders it has 'zero tolerance of corrupt practices' and highlighted that it uses auditing and staff training to prevent involvement in corrupt activities.
UGL extended the contract of its chief executive Richard Leupen until fiscal 2015 as part of a reorganisation. The company had intended for Russell Waugh to lead the independently listed engineering business following the DTZ spin-off.
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