Shamed rail contractors back at work

Less than two years after the seventh ICAC report into bribery and fraud on Sydney's rail system, at least five individuals - all of whom still face possible criminal charges - are again making their living from government-owned rail companies.

The system of backhanders, false job dockets and even theft that contractors entered into with corrupt RailCorp managers cost NSW taxpayers almost $20 million before it was exposed in 2007.

A Sun-Herald investigation has found that some contractors have been able to get back on the gravy train by subcontracting to larger firms while others have sold their businesses to family and associates and either continue to benefit or work directly as an employee.

To the anger of reputable contractors, both RailCorp and Transport Minister John Robertson - and even his predecessor David Campbell - are aware of the situation.

After receiving questions from The Sun-Herald, Mr Robertson and RailCorp have referred the matter back to ICAC for further investigation.

The allegations include:

Contractor Brett Schliebs, who infamously clocked on for work from a lingerie restaurant called Twin Peeks, is working as a site manager for the federal government's Australian Rail Track Corporation.

Nat "The Bobcat" Severino, an excavation specialist, has been working for RailCorp via a subcontracting arrangement with giant infrastructure firm John Holland.

Bill Kuipers, who paid bribes for the inside running on lucrative trackwork contracts, sold his business to Adept Civil, which works for RailCorp through a subcontracting arrangement with Infraworks but was kept on the payroll for two years as a "consultant".

Adam Azzopardi, who sold most of his machinery to his brother Kevin who contracts to RailCorp, does work in rural and regional NSW on ARTC sites.

The Sun-Herald is aware of a fifth contractor who is said to have been working on the southern Sydney freight line in a subcontracting arrangement with Downer EDI.

The Civil Contractors Federation is furious that shamed contractors have been able to find loopholes to get back into the lucrative system of trackwork.

"The Civil Contractors Federation is horrified at the number of cowboy and phoenix firms working for both the state and federal governments," federation chief executive David Elliott said.

"We have raised this with the NSW Minister John Robertson, whose response has been simply that he thinks there should be an 'increasing awareness' of misrepresentation.

"Like a stolen car, these firms are often

're-birthed' by operators who sell their plant and equipment to relatives and friends at well below market rate in order to stay in business. The 'new' contractor is then able to tender for government projects safe in the knowledge that they will get through any probity check."

RailCorp said it was not aware that Nat Severino's company, Nat's Earthworks, had been engaged.

He invoiced John Holland for work at a RailCorp work site at Lawson in the Blue Mountains in February. A John Holland employee with access to his invoices told The Sun-Herald: "Looks like he's done a lot of work", including invoices specific to rail work.

"In accordance with [RailCorp] policy, Mr Nat Serevino does not hold a valid RISI card and is not an approved supplier to RailCorp," a spokesman said. "RailCorp informed Mr Severino in a meeting in June 2009 that he was not suitable to work for RailCorp. The allegation that Mr Severino has worked at a RailCorp site without a valid RISI card is serious and will be investigated."

RailCorp also said Mr Kuipers had not been allowed on site and that the company he sold his business to, Adept Civil, and kept working for, had not been subject to adverse findings by ICAC.

ARTC said it was not aware that Brett Schliebs or Adam Azzopardi had carried out work through other companies.

When approached by The Sun-Herald, Mr Azzopardi confirmed he had sold his machinery to his brother but said he was unemployed. His house at Berkshire Park in Sydney's west still serves as a second depot for his brother's company, Azbuild, but it is not suggested that he works for Azbuild.

A number of rail contractors said he had been seen picking up machinery from Azbuild and using it in regional areas.

Corruption cancer eating RailCorp alive

SEVEN reports, months of hearings, hundreds of hours of investigation, the involvement of some of the state's finest legal minds and who knows how many taxpayer dollars spent.

What was the point?

The ICAC crusade against the corruption cancer eating RailCorp alive has been made to look like a farce. An act of window dressing.

What was the point of weeding out the crooked contractors only to allow them to weasel their way back into earning their living from public funds, whether directly or indirectly?

RailCorp will play dumb and insist that all contractors shamed by ICAC were stripped of their ticket and banned from site.

That may be the case but it is clear for anyone to see that the system stinks when all it takes for dodgy operators to resume their lucrative trade is by selling out, changing business names, subcontracting to a larger conglomerate or switching location from city to country.

There should be no demarcation between state-funded or federally owned railways when it comes to keeping the corrupt off the tracks.

There was nothing sophisticated about the scams entered into by these contractors.

Brett Schliebs was paid to manage a work site while enjoying an erotic lunch at Twin Peeks.

Bill Kuipers had the hide to insist he was just helping out a friend when he funnelled $510,000 to RailCorp manager and pokie addict Renea Hughes, pocketing $123,000 for himself in the process.

This problem does not need a sophisticated solution, just a bit of political will and the co-operation of the state-owned rail companies.

That's probably too much to expect in NSW in 2010.