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News: Redflex confirms bribery in Chicago contract management
The summary findings of Redflex investigation into contract acquisition irregularities in Chicago has been released and is pretty damning. The investigation has resulted in the resignation of both the President and CEO and the CFO and the firing of an Executive Vice President.
The investigation concluded that payments of $2,030,000 in an arrangement between the Chicago City Program Manager, a consultant and Redflex would be considered bribery. Redflex not only paid for at least 17 holidays but that some of these trips and all of the expenses were approved by the former CEO.
The investigation also found that some disclosures to the Chicago Board of Ethics were 'inaccurate and misleading' and that the Redflex CFO either knew or should have known about this.
The Executive Vice President, who has been named as Aaron Rosenberg, was also deemed to have committed fraud and embezzlement involving personal expenses. Mr Rosenberg is now subject to separate legal proceedings.
In the mean time the board members have been replaced and the current structure of the Australian company's board has 3 US based members and one Australian. Today Redflex shares were trading at 0.95 AUD having recovered from an opening of 0.79 AUD when shares started trading after the suspension. Prior to the investigation announcement the Redflex shares were trading at 1.74 AUD in February with a 52 week high of 2.25 AUD. The company's problems have not ended there as they have also released their First Half Financial Report to 31st December 2012. This reflects a period before the investigation results were announced and reports a 49% drop in both profits and earnings.
The full summary of the Redflex investigation follows:
Click here to read more...
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Posted on Wednesday, March 06 @ 13:40:33 UTC by Mike Barrett |
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