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Tech players entangled in $5M council corruption probe

Tech players entangled in $5M council corruption probe

CND Computers, On Q Installations and Computer Intersection among those named

Additionally, On Q Installations, a business that mainly supplied mobile telephones, car trackers, car alarms, car audios, computers and toner cartridges to the council, was also named in the ICAC investigation report.

For a period of time, On Q Installations was on a retainer with the council. In 2009, a payment from the council in an amount of $34,540 allegedly appeared in a bank account associated with Goodman with the reference “On Q Installations”. The council was not able to locate an invoice relating to this payment, ICAC said.

It is understood that On Q Installations’ management knew nothing about this payment.

Meanwhile, Emu Alarms, which traded from 15 June 1998 to 14 January 2007, and mainly sold and serviced security cameras, alarms and intercoms, carried out work for the Council and Goodman’s business, Gas Motorsports.

“Relevant banking and other records show that, between 11 August 2006 and 30 April 2009, $300,073.64 was paid into accounts associated with…Goodman as a result of the payment by the Council of invoices submitted in the name of Emu Alarms,” the ICAC report said.

According to ICAC, Goodman admitted that he had created and submitted false invoices in the name of Emu Alarms and had used his own bank account details on those invoices. He admitted that he was the sole person responsible for doing so and that Maton had no knowledge of what he did.

Finally, telecommunications hardware reseller, Teletec, was also allegedly entangled in Goodman’s invoicing activities, with the company’s operator, Sam Alexander, allegedly submitting false invoices – in agreement with Goodman – for work that had not been done.

The alleged intention was that Goodman would use his position at the council to dishonestly arrange for payment of the invoices in order to reap the financial gains himself.

Over a period of between about 18 to 24 months, Mr Alexander lent Mr Goodman about $35,000, of which about $10,000 was repaid to him, ICAC said.

According to the Commission, Alexander estimated that approximately $90,000 was allegedly improperly obtained from the council over a period of between about 12 to 15 months.

“Alexander said the arrangement to submit false invoices was initiated by…Goodman and all the proceeds were remitted to…Goodman either in cash or by making payments on his behalf,” ICAC said in its report.

With the investigation wrapped up, the Commission has issued the council with a number of recommendations to prevent such corruption from occurring in the future, including the recommendation that Bayside Council review its financial processes and makes any necessary changes to ensure that its vendor master file is subject to appropriate segregation and review-based controls.

It also recommended that Bayside Council undertake a review of the control frameworks governing processes that are vulnerable to corruption, including those related to procurement, invoice payment, fleet management and charge-card usage.

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Tags legalICACcorruptionBotany Bay City CouncilOn Q InstallationsCND ComputersComputer Intersection

More about City of Botany Bay CouncilICACIndependent Commission Against CorruptionQ

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