BISM7209 Asset safeguarding and control system essay
Aims: This assessment is designed to achieve three aims. The first aim is to help
develop your understanding of control systems. The second aim is to further your
understanding and appreciation of the importance of controls to achieving the
organisational goal of asset safeguarding. The third aim is to help develop your
writing skills by producing a concise, straightforward, and brief essay.
Ferraris and shoeboxes of cash: ICAC
unearths ‘rigged’ government contracts
Two public servants allegedly rigged NSW government contracts for millions
of dollars’ worth of kickbacks, including luxury cars, cash deliveries and
school fees in a complex, decade-long scheme now at the centre of a
corruption inquiry.
Alexandre Dubois and Craig Steyn allegedly spent close to 10 years subverting
the Roads and Maritime Services processes to award more than $41 million in
contracts to companies owned by friends and family, an Independent
Commission Against Corruption inquiry was told on Monday.
The pair, who sat next to one another at work, are accused of garnering more
than $6.8 million in kickbacks from their scheme, which included a $1.5
million Ferrari and a handful other luxury cars, a Rolex, jewellery, cash
deliveries in shoeboxes, as well as school and travel fees.
Counsel Assisting the inquiry Jason Downing, SC, described the pair’s yearslong
conduct as “intricate and extensive,” and said it wasn’t possible to put an
exact figure on the amount of money they made, given the use of cash.
“Operation Paragon ranks as one of the most complex investigations
undertaken by the commission involving a number of joint enterprises and
schemes,” Mr Downing said.
“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 Mr Steyn’s corrupt conduct was less substantial than that of
Mr Dubois, and his kickbacks less extravagant.
“By contrast to Mr Dubois, who seems to have had a penchant for cash and
luxury cars, Mr Steyn seems to have been keen on others paying for goods and
services for him,” Mr Downing said.
The inquiry heard that among the beneficiaries of the RMS contracts were
associates of Mr Dubois tracing back to his time at university in the early to
mid-2000s, with jobs awarded to companies with only limited or no
background in the specific field of work.
Many of the contracts Mr Dubois awarded over the 10-year period were
below $250,000, which meant they did not require an open tender process,
with just three contractors needing to apply.
The ICAC heard Mr Dubois developed and refined a process where he would
get three different companies controlled by the same person to bid for the
contract “so they were pretending to bid against themselves”.
In other instances, he would pit friends, associates and relatives against each
other but predetermine the outcome by telling each contractor the price they
should quote at.
“Mr Dubois would ensure that the price of the successful quoter was high
enough to include a component that could then be paid back to him in the
form of a kickback,” Mr Downing said.
Mr Downing noted that many of the companies involved were registered at
almost the precise time they were first put forward as contractors for
government contracts.
“It might be thought that the fact of companies being set up and immediately
being put forward as vendors may have been a red flag to the organisation
that some due diligence was required. It seemingly was not,” he said.
Aside from cash and cars, contractors also handed over debit cards which
were used to withdraw cash or pay for life expenses. A proprietary limited
company was also set up primarily as a financial vehicle “to receive payments
in the form of kickbacks from various contractors”.
One company delivered substantial amounts of cash in a shoebox to Mr
Dubois’ home on more than one occasion, the inquiry heard. At least three
different Ferraris were part of the kickbacks, including the $1.54m Ferrari
F40, as well as several Porsche 911 variants.
The ICAC heard Mr Steyn’s kickbacks were “less substantial” than Mr Dubois.
They included works to his home in Castle Hill, cash payments, travel and
school fees and a Mercedes C63.
Both men’s employment was terminated in 2019.
Mr Steyn is expected to appear before the ICAC on Wednesday. The inquiry
continues.
Expected length: This essay should not exceed 4 pages, including references,
double-spaced 12-point Arial font. Referencing style should be APA or Harvard
and should remain consistent throughout your essay.
Value: This assessment represents 20% of your grade for BISM7209
Due date: Please refer to the BISM7209 Electronic Course Profile (ECP).