Transclean loses V/Line contract after IBAC revelations
A company that got extra government cash to do vital coronavirus cleaning work on public transport has had its V/Line contract terminated after allegations it was protected by a Metro Trains executive despite deep fears about the standard of their work.
Victoria
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CONTRACTORS paid to clean Victorian trains allegedly failed to properly disinfect the carriages during the coronavirus pandemic, with V/Line chief executive James Pinder sacked after another day of explosive anti-corruption hearings.
The Independent Broad-based Anti-corruption Commission on Thursday heard evidence that Transclean was not cleaning all Metro trains to standard despite being paid millions in taxpayer dollars for the extra work.
In a secretly recorded April phone conversation, Metro’s head of fleet operational support, Peter Bollas, complained to Transclean’s managing director George Haritos about the quality of the cleaning to protect against coronavirus.
“The state is paying you more, now, to do more work that you’re not doing,” Mr Bollas said.
“They didn’t even f---ing spray the train … We’re paying you to f---ing spray them.”
After the pair argued, he reminded Mr Haritos that CCTV cameras were used in the area.
“These f---ers can rip the tapes and have a look at what’s been happening for the past two weeks there and I can guarantee you it wasn’t the first time this has happened.
“Tell me the truth and let me go and tell the lie. There has to be a better way, ‘cause this is gonna happen again and again. I’ve got to cover up, what do you think I f---ing do every day George?”
IBAC is holding week-long hearings as part of a corruption probe into whether the two men, along with Mr Pinder, engaged in serious misconduct for financial gain.
Mr Bollas is also recorded warning a Transclean associate about an upcoming audit.
Commissioner Robert Redlich QC asked Mr Bollas if he had concerns about tipping off the associate or the improper cleans, given the serious nature of the work.
“Did you not have any disquiet, Mr Bollas, that in the context of this pandemic you were in effect giving advance notice to the cleaner to get his house in order?” he said.
“In relation to what was meant to be a surprise audit to see that COVID requirements were being met.
“That’s part of the deal you had with Transclean that you’d help them out regardless?”
Mr Bollas agreed that this was correct.
The commission has previously heard from Mr Bollas that he received up to $150,000 in cash payments over the past four years from Mr Haritos to help grow Transclean’s business.
The cleaning company was awarded a lucrative V/Line contract in 2018 but also received extra work for the regional rail operator and Metro as part of its pandemic response.
While this was taking place, IBAC investigators recorded multiple instances in which Mr Haritos would extract large sums of cash before meeting the pair.
In August, he was spotted counting $100 bills before meeting Mr Pinder in Williamstown and putting a package in the rear seat of his car.
Mr Pinder has maintained this was part of a syndicate, despite Mr Bollas admitting he has never been in a gambling group.
On Thursday, V/Line Chair Gabrielle Bell said Mr Pinder had been sacked and that the operator’s contract with Transclean terminated.
“V/Line will work to support the frontline cleaning staff who may be affected by this decision,” she said. “The alleged conduct of both Mr Pinder and Transclean is not acceptable to V/Line under any circumstances.”
Ms Bell said acting chief executive Gary Liddle would continue in his role until further notice.
Mr Haritos, who gave public evidence for the first evidence on Thursday afternoon, first met Mr Pinder when he worked for Metro in 2013, with the two becoming friends while working to settle a legal dispute.
Mr Haritos maintained the pair had been in three separate gambling syndicates since 2017, each one starting with $10,000 and making thousands in profit that were kept in cash in his drawer at home.
He said the most recent group returned a profit of $35,000, with all bets being quadrellas of $500 to $1000 and winning abouttwice per month.
“This is very successful betting if I might say,” counsel assisting the commission, Paul Lawrie said. The hearing continues on Friday.
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