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 reorganisation, with Mr Waugh intended to lead the independently listed engineering business.
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The article reports that governance concerns tied to alleged bribery during the period when Leighton was run by Wal King have surfaced. Those concerns — including the former Leighton links of new UGL appointees — could complicate UGL's reorganisation and leadership plans.
Russell Waugh is a former senior Leighton employee whom the article says was believed to have been hired directly by the UGL board. He was intended to take over as chief executive of UGL's engineering group after the planned spin-off of its property management arm, DTZ.
The article states the DTZ property management services arm is slated for fiscal 2015, and the spin-off was central to UGL's plan to create an independently listed engineering business that Russell Waugh was intended to lead.
According to the article, negotiations were continuing late on Wednesday and a UGL spokesman said discussions had not yet been finalised over Mr Waugh's future status with the company.
The article notes the recent resignations of two former Leighton figures: David Stewart (from his role as chief executive of Laing O'Rourke Australia) and David Savage (from a directorship at Keller). Their departures, alongside questions about former Leighton activity, highlight wider governance concerns that investors may want to monitor.
Wal King was Leighton's CEO during the period mentioned. He remains a director of Coca-Cola Amatil and Ausdrill, and those companies told reporters they had 'no comment' when asked whether his directorships were under review. Mr King has denied any wrongdoing.
The article says WorleyParsons told shareholders it has 'zero tolerance of corrupt practices' and highlighted its auditing and staff training to prevent such conduct. Coca-Cola Amatil, Ausdrill and the Garvan Research Foundation declined to comment on the controversy.
UGL extended the contract of its chief executive, Richard Leupen, until fiscal 2015 as part of its reorganisation. The extension comes alongside plans for Mr Waugh to lead the independently listed engineering business if his appointment is finalised.
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