Former Train Network CEO Charged After IBAC Corruption Probe

A V-Line train at Southern Cross Station in Melbourne, Australian, on Jan. 24, 2022. AAP Image/Joel Carrett

Victoria’s anti-corruption watchdog has charged seven people with offences, including the former V/Line CEO and a former Metro Trains manager, following an investigation.

The state’s Independent Broad-based Anti-corruption Commission (IBAC) has alleged serious corrupt conduct during the tendering, procurement, and subsequent management of major contracts within Victoria’s regional train network, V/Line, and suburban train network, Metro Trains, the watchdog announced on Dec. 2.

The seven individuals were charged on offences including alleged misconduct in public office and for receiving secret commissions.

Former V/Line CEO James Pinder has been charged with four charges of alleged misconduct in public office, four charges for allegedly receiving secret commissions, and one charge of alleged conspiracy to solicit secret commissions.

Meanwhile, former Metro Trains fleet manager Peter Bollas was also charged by IBAC for allegedly receiving secret commissions and one charge for alleged conspiracy to solicit secret commissions.

IBAC also charged two Transclean directors for allegedly giving secret commissions and for alleged conspiracy to giving secret commissions.

Additionally, a Transclean staff member has also been charged with alleged conspiracy to give secret commissions, while another staff has been charged with allegedly giving secret commissions and for alleged conspiracy to attempt to pervert the course of justice.

The lawyer to a Transclean staff member has also been charged with allegedly conspiracy to attempt to pervert the course of justice.

The first court appearance will be held in the Melbourne Magistrates’ Court on Dec. 21.

Corruption Between Transport Sector and Cleaning Company

As part of the IBAC’s investigation under Operation Esperance, three public hearings were conducted between October 2020 and July 2021 into allegations of corruption of major contracts within the Victoria public transport sector.

Pinder was suspended from his position by the V/Line board in August 2020, and was later terminated in October of that year in the wake of his appearance before the inquiry for allegedly accepting bribes from Transclean to secure government contracts in return.

Cleaning company Transclean was contracted by the Victorian state government to sanitise and perform deep cleaning to trams and trains during the height of the coronavirus pandemic.

Pinder was found to have allegedly accepted $320,000, including a $100,000 loan from sources linked to Transclean, over the course of several months, which he then allegedly spent on his $2.5 million home in Williamstown, IBAC heard.

On top of Transclean’s contracts with V/Line worth up to $40 million, and $5 million with Metro Trains, Transclean was paid $1.3 million a month by the state government to sanitise Melbourne’s trains early in the pandemic but allegedly cut corners to secure work.

IBAC heard that Transclean used a disinfectant product called Oxivir between February and April that was required to be used by staff on a daily basis.

According to counsel assisting Paul Lawrie, Metro Trains wanted to trial a longer-lasting disinfectant product called Zoono, which advertised being able to create a protective shield to protect surfaces against bacteria for up to 30 days. Using Zoono’s longer-lasting disinfectant product would have reduced the amount of cleaning required, and therefore reduced Transclean’s cleaning hours and ultimately profit.  Tranclean managing director George Haritos then allegedly became involved in a scheme to sabotage Metro Train’s plan.

In phone recordings played at the IBAC hearing, “Haritos was heard telling his nephew, Steve Kyritsis, to deliberately wipe rags with bin juice on train surfaces to allegedly “contaminate” the trains and make Zoono seem less effective,” reported the Herald Sun.

Metro Train’s former fleet manager, Peter Bollas, was also accused of accepting bribes of up to $150,000 in cash payments from Transclean, and tipping George Haritos, head of Transclean, off about upcoming audits.

The inquiry heard Pinder and Bollas allegedly accepting cash payments of up to $10,000 from Haritos. Pinder claimed the money received from Haritos was linked to a gambling syndicate with Haritos and Bollas. However, Bollas denied knowing this syndicate existed and was instead paid in exchange for moving along Transclean’s business interests.

Haritos admitted in intercepted phone conversations with Bollas, which were played at the hearings, that the cleaning on Melbourne trains was deficient.

“The state is paying you more now, to do more work which you’re not doing,” Bollas said on the phone call to Haritos.

“In one instance, the contractor reported spraying a carriage with disinfectant when the cleaners did not actually do this, the inquiry heard. Bollas told Haritos that anyone checking the CCTV footage would see proper cleaning hadn’t been done for two weeks,” reported The Age.

In the secretly-recorded phone call, Bollas and Haritos made reference to a secret agreement where Bollas would cover up for Transclean’s mistakes, which Bollas said he does daily.

Cleaning contracts with Transclean have since been terminated by both V/Line and Metro Trains.