Brisbane man arrested over billion-dollar foreign bribery allegations
A former Brisbane executive has been bailed after facing an extradition hearing over a billion-dollar bribery scandal involving allegations of payments to Iraqi officials to gain lucrative oil contracts.
Police & Courts
Don't miss out on the headlines from Police & Courts. Followed categories will be added to My News.
A Brisbane man has walked free on bail after an extradition hearing over a billion-dollar bribery scandal involving allegations of payments to Iraqi officials to gain lucrative oil contracts.
Former Leighton Holdings executive Russell Waugh, 54, appeared in Brisbane Magistrates Court this morning for the extradition application lodged by Australian Federal Police.
Waugh is one of three men facing charges following a decade-long investigation by the AFP, FBI and UK Serious Fraud Office.
The AFP said it had also issued arrest warrants for two men living overseas – a 60-year-old and a 62-year-old.
Waugh, representing himself, appeared via video link from the Brisbane City watch-house.
His extradition to NSW is sought on four charges including two conspiracy offences relating to alleged foreign bribery.
The other two charges relate to the alleged cover up of the foreign bribery offences, the court heard.
“In short there are two conspiracy charges to commit foreign bribery and two Corporations Act offences, which are essentially allegations of the cover up related to those more serious allegations,” Commonwealth prosecutor Lindsay Glenn said.
“My understanding is that it relates to transactions that Leightons were being part of back in 2010.”
The AFP alleges its investigation found bribes of $US77.6 million were paid to Iraqi government officials to secure the contracts, worth $US1.46 billion combined.
The Commonwealth Director of Public Prosecutions proposed Waugh be bailed to appear in a NSW court on nine conditions, including the surrender of his passport and a non-contact provision relating to 46 people.
Another condition allowed Waugh just one phone, with its passcode to be provided to the AFP.
An initial condition that he agree to forfeit $100,000 if he failed to appear in NSW was dropped by the DPP.
Waugh, who was calm but looked concerned, consented to the extradition and agreed to the bail conditions.
Magistrate Michael Quinn approved the extradition and bailed Waugh, who lives in Annerley, to appear in the Central Local Court in Sydney December 2.
Between 2009 and 2011 Leighton Singapore, of which Waugh was a director, was bidding for contracts to install oil pipelines in Iraq.
According to court documents Waugh allegedly conspired to have third parties offer bribes to the Iraqi Government in order for Leighton Singapore to be awarded contracts.
The documents allege Waugh conspired to offer bribes to Iraq’s Ministry of Oil and a state-owned oil company through a company called Unaoil.
According to the documents Leighton Singapore paid Unaoil over $US100 million between 2010 and 2013.
In October 2010 Leighton Singapore was awarded a $US733 million pipeline contract in Iraq.
Waugh was sacked from Leighton in 2012.
“The investigation revealed two contracts for the development and installation of onshore and offshore oil pipelines designed to increase the capacity of Iraq’s crude oil export,” an AFP statement said.
“Police will allege the key targets of the bribery scheme were Iraqi Ministry of Oil officials and government officials within the South Oil Company of Iraq.”
Last year Unaoil’s CEO Cryus Ashani and director Saman Ashani pleaded guilty in the US to conspiring to facilitate bribes on behalf of companies seeking oil and gas contracts in Iraq.
Both men provided statements to the AFP regarding their involvement with Leighton Singapore.
The long-running and complex probe has seen more than two million documents seized, and evidence obtained from 10 countries.
But the AFP said it was key witness statements that allowed charges to be laid to bring the men before the court.
Waugh was this morning charged with two foreign bribery offences, and one charge of allegedly engaging in conduct to falsify books linked to the corporation.
AFP Deputy Commissioner Investigations Ian McCartney said foreign bribery investigations required strong collaboration with international law enforcement partners to combat corruption on a global scale.
“Operation Trig investigators demonstrated outstanding resilience over the past nine years,” Deputy Commissioner McCartney said.
“They persevered through the painstaking process of piecing this jigsaw together from facts and allegations of alleged corruption that reached internationally, to a level that allowed us to bring this before the court in Australia.
“Their determination to ensure acts of alleged corruption are held to account is a testament to the dedication, skill and tenacious approach of AFP members, and the strength of our partnerships worldwide.”
The AFP has not ruled out further arrests or charges, with investigations continuing.
On Waugh’s LinkedIn profile, he described himself as having more than 30 years experience in the oil and gas construction industries in Australia and overseas.
He listed himself as a managing director of Leighton International from 2004 to 2012.
Bombshell DV crackdown: Dating app bans, forced to share passwords
Domestic violence offenders could be dealt control orders similar to those used for organised crime and bikies under sweeping changes proposed by the Queensland Police Union.
Murder-suicide probe after bodies found in apartment
A crime scene has been declared at Miami on the Gold Coast where two people have been found dead in an apartment with a murder-suicide investigation underway.