ICAC hears claims Alexandre Dubois and Craig Steyn benefitted from contracts

Alexandre Dubois and Craig Steyn allegedly made $7 million in kickbacks and bought luxury cars in exchange for handing out $41 million of dodgy contracts, ICAC has heard.

Porches, Ferraris, a Rolex and thousands in cash - two bureaucrats allegedly handed $41 million worth of taxpayer contracts to their mates and families in exchange for $7m in kickbacks that they spent living the high life, the corruption watchdog has heard.

The public servants “reigned” for a decade over the cheque books of the Roads and Maritime Service, the Independent Commission Against Corruption heard, because managers and systems failed to do basic due diligence.

The ICAC on Monday formally opened public hearings in Operation Paragon which is examining the actions of RMS employees Alexandre Dubois and Craig Steyn between 2009 and 2019.

The Porsche 997 GT2 RS that was purchased twice once for $353,028 and again for $735,000, allegedly as part of a multimillion dollar kickback scheme run by RMS employees Alexandre Dubois and Craig Steyn. Picture: ICAC

The luxury cars were often allegedly purchased by building firms secretly associated with the employees in exchange for government contracts, the ICAC alleges. Picture: ICAC

Counsel Assisting the Commission Jason Downing SC said Paragon was one of the most complex investigations ever undertaken by the body, which has felled high profile government officials - including premiers - over the years.

“(The evidence will show) that over almost 10 years, Mr Dubois and Mr Steyn engaged in large scale, systemic, conduct which involved them taking steps to ensure that RMS contracts were awarded to companies controlled by friends and associates, and in some cases, family members, in return for very substantial kick-backs,” Mr Downing said on Monday.

The ICAC heard, often, companies would be set up by associates of Dubois just days before they were awarded significant contracts with the RMS.

The companies would then pay hundreds of thousands of dollars into accounts and give the RMS insiders debit cards - or cash - in return.

Sometimes the firms allegedly chipped in together to buy lavish gifts for the RMS insiders.

The most eye watering price tags were multiple luxury supercars for Dubois with two firms shelling out hundreds of thousands of dollars each for Porsches and Ferraris.

One supercar was allegedly purchased, sold, and then bought back again for an even higher price.

“The white Porsche 997 GT2RS seems to have been a particular favourite of Mr Dubois’ and it was twice purchased for him, once for $353,028 and once for $735,000,” Mr Downing said.

The heftiest price tag was a $1.58m Ferrari F40, a dream car for collectors. One firm allegedly picked up $1.2m of that tab.

Debit cards were also given to the men that allowed them to withdraw hundreds of thousands of dollars in cash or spend tens of thousands on living expenses, Mr Downing said.

A Rolex watch was also among the items bought.

Everything from school fees to a Rolex watch were allegedly purchased with the funds.

Mr Downing claimed there was at least $6.98m paid to the men by winning contractors but a precise figure is impossible to ascertain because there were no records of how much they were given in cash.

One firm’s chief, in 2013, allegedly “bribed” Dubois more than $200,000.

On multiple occasions, the ICAC heard, the head of the firm arrived at Dubois’ home with shoeboxes filled with “significant amounts of cash”.

Another occasion that same businessman went with Dubois to an auction and bought the RMS insider $200,000 worth of jewellery.

The ICAC heard Dubois and Steyn’s actions would have driven up the price of the contracts the RMS was awarding because the winning companies would have had to factor in their kickbacks.

The RMS appears to have failed, for years, to detect the alleged scam run by the two men, Mr Downing said.

He acknowledged they were allegedly trying to cover their tracks but said it was hardly a sophisticated scheme.

Even “cursory due diligence” would have revealed the companies winning contracts were not at arms length from Dubois or Steyn, he said.

“In the later years of Mr Dubois and Mr Steyn’s reign, their immediate superior, Mr Samer Soliman, was at best, ill equipped to detect their conduct or, at worst, wilfully uninterested in looking into it,” he said.

Mr Solimon has previously been identified in a separate ICAC investigation, called Ember.

Ember examined allegations Mr Solimon and another RMS employee was involved in a similar scheme as his underlings which saw a $9m contract issued for portable weigh scales in exchange for his own financial gain.

Mr Solimon has not been charged and Operation Ember has made no adverse findings against him.

Steyn will give evidence later this week.