Over the past five years, V/Line has been involved in two IBAC investigations and had five chief executives. Its most recent former CEO is under IBAC investigation for alleged receipt of corrupt payments in relation to the awarding of cleaning contracts.
During the latest IBAC investigation the Labor appointed V-Line board awarded $125,000 in performance bonus'.
The poor governance of V-Line is symptomatic of the whole Andrews government and administration. Corruption, endemic poor performance and little or no accountability.
See report below published in Herald Sun today.
Andrews should resign.
*********************************************************************************************** V/Line bosses get bonuses paid as fares decimated
Explosive new documents reveal the embattled regional rail operator signed off on lucrative bonuses totalling $125,000 for top executives. Kieran Rooney and Tess Ikonomou
June 18, 2021 - 6:00AM
Former V/Line chief executive James Pinder was allegedly paid kickbacks to help cleaning firm Transclean get V/Line contracts. Picture: Alison Wynd
V/Line’s board of directors gave executives lucrative bonuses totalling nearly $125,000 in the middle of a corruption scandal and while the coronavirus pandemic decimated fares.
The revelations come after reports of duplicate contracts and integrity issues throughout 2020 and allegations their chief executive secured work for mates in return for cash “sprinkles” and a house deposit.
Over the past 12 months, Operation Esperance has heard accusations former chief executive James Pinder was paid kickbacks to help cleaning firm Transclean get V/Line contracts.
Explosive new board minutes obtained by the Herald Sun paint a picture of how leadership at the top of the regional rail operator responded while the crisis unfolded.
Discussions among senior leaders during this time included:
– A DECISION to award nearly $125,000 in “performance incentive payments” despite acknowledging a pandemic-related fall in fares and the cloud of an IBAC investigation.
– CREATION of a new committee to investigate contract integrity.
– A LETTER sent to Transclean, requesting they self-declare any conflicts gifts.
– ONGOING questions about how to manage conflicts of interest and award contracts properly.
The documents reveal Mr Pinder was due to give a presentation on V/Line’s culture which had to be cancelled because of his corruption probe.
In a meeting on October, the board considered whether to decide three work contracts while V/Line’s procurement behaviour was still being questioned in public hearings.
They resolved that documents supporting procurement “provide evidence of value for V/Line”.
At another meeting, they ordered a review of “what behaviours are required for employees and contractors to act in accordance with V/Line’s values”.
The company was also twice billed in error by Transclean for the same services, known as duplicate charges.
This was put found to be an administrative issue and credits were paid out to recover overpayments.
Transclean’s work with the operators was terminated last year and no other contracts have been scrapped since then.
A V/Line spokeswoman said they would co-operate with all IBAC recommendations when a final report was delivered and the company complied with all requirements for contractors.
“The alleged conduct of both Mr Pinder and Transclean is not acceptable to V/Line under any circumstances,” she said.
Over the past five years, V/Line has been involved in two IBAC investigations and had five chief executives.
A senior source inside the organisation said the mood was “not well” and that issues with the board had long been blamed for V/Line problems and frustration from government.
They said the company was undergoing a once in a generation transformation as it catered for millions of new journeys but was continuously plagued by scandals and leadership changes.
It has grown from annual patronage of 15 million in 2014/15 to 22.36 million in 2018/19 before the pandemic.
This week, the government announced V/Line would no longer be a “state owned enterprise” and would become a statutory authority within the Department of Transport.
The decision means the chief executive answers to the department, rather than the board, and provides the government with more oversight.
The reform will be rolled out by newly appointed chief executive Matt Carrick who will serve in the role for 12 months.
It is not said to be a direct response to the IBAC probe, given the corruption watchdog has not handed down a final report and public hearings are still ongoing.
“The Government continues to work with V/Line to ensure the best governance is in place to deliver the best public transport services for Victorians,” a state government spokeswoman said.
The Head of Transport Services at the Department of Transport, Nick Foa, is one of two acting directors to be appointed to the V/Line board.
Department of Treasury and Finance deputy secretary Jamie Driscoll has also been appointed, bringing the number of directors to five. Both will retain their current roles.
Then chief executive of Public Transport Victoria, Jeroen Weimar, was also chair of the V/Line board between June 2018 and September 2019.
Opposition transport infrastructure spokesman David Davis said: “This is a disastrous takeover of our country rail service by city based officers who oversaw the massive decline in service standards over the last five years and missed the overt corruption under their noses”.
Public Transport minister Ben Carroll did not confirm how much public money was tied up in V/Line’s corruption scandal when asked by the Public Accounts and Estimates Committee on Thursday.
“What was aired through the IBAC inquiry was very concerning and as minister I took appropriate action as soon as I was made aware of what had occurred,” he said.
