THE NSW Fire Brigade engaged in a host of poor management procedures that paved the way for corrupt practices to occur among some of its managers, the the Independent Commission Against Corruption has found.
Yesterday, ICAC released a report into an investigation of two former NSW Fire Brigade project managers who gained $2.4 million in payments from the organisation to pay off mortgages and buy a farm. It recommended they should face criminal charges.
ICAC found that Christian Sanhueza and Clive Taylor submitted false tenders and quotes to the NSW Fire Brigade to win contracts for companies controlled by Mr Sanhueza.
Mr Sanhueza received $6.07 million from the NSW Fire Brigade for the upgrade, repair and maintenance of fire stations. After paying subcontractors, Mr Sanhueza received at least $1.4 million and his associate, Mr Taylor, $1.01 million, ICAC found.
After its investigation, ICAC said it had uncovered "systemic weakness" at the NSW Fire Brigade, making 14 "corruption prevention recommendations" to minimise or prevent similar corrupt conduct and improper work practices from recurring.
ICAC's findings come less than a week after its scathing report into the management of RailCorp, where it found "endemic and enduring corruption".
In response to the ICAC report, the NSW Fire Brigade admitted inadequate practices and procedures had allowed the corrupt behaviour to take place. "Tougher policies and procedures are now in place to make the organisation corruption-resistant," Commissioner Greg Mullins said.
The NSW Fire Brigade had no effective method of costing a capital works project, ICAC said. "The budget allocation process offered the corrupt project managers their opportunity."
Since the case emerged, the NSW Fire Brigade had engaged independent experts to identify ways to improve its property management and reinforce its fraud and corruption prevention practices, ethical standards and corporate governance.
Changes include using a probity auditor on large or complicated projects and using the Department of Commerce to manage some of its building projects, while ensuring that the identity of all subcontractors on projects is made clear by the successful tenderer.
Earlier, ICAC referred the matter to the NSW Crime Commission, which obtained restraining orders against Mr Sanhueza and Mr Taylor. Subsequently, the Supreme Court has "made a proceeds-assessment order" against Mr Sanhueza for $950,000 and has sought to seize assets of Mr Taylor - a farm at Merriwa, two flatscreen televisions and a laptop computer, ICAC said.
In its report, ICAC called for the Director of Public Prosecutions to consider pursuing criminal charges against Mr Sanhueza, Mr Taylor and Mr Taylor's wife, Annamarie Taylor. It recommended the DPP consider charging Mrs Taylor with hindering the investigation undertaken into the fraud perpetuated by the two men.