RailCorp manager accused of bribe taking

A senior RailCorp employee who masterminded a scheme to solicit bribes from dozens of major companies says he was easily able to bypass corruption safeguards.

Procurement manager Wasim Khan said numerous loopholes within RailCorp's tender system would have allowed him to obtain a fortune in bribes and backhanders.

Khan, who joined the organisation in September 2008, was caught on May 22 after accepting a $15,000 kickback from security firm Unisec.

Its boss Asen Harambasic alerted the NSW Independent Commission Against Corruption (ICAC) prior to paying the bribe.

"The task RailCorp has is to work out how this happened and ensure it doesn't happen in the future," ICAC Commissioner Jerrold Cripps QC told the first day of the latest ICAC hearing of allegations of corruption at the state government corporation.

Khan, who could now face criminal proceedings, said he planned to pocket at least $200,000 over the course of four years from Unisec and similar amounts from other firms.

"If this worked, there would have been other opportunities down the line that I would have thought 'Oh, I will do that contract too'. There were lots of holes in the net," he told the inquiry.

Khan said he used his uncle, Mohammed Ali, as a go-between to negotiate the bribe from Unisec following a brief tendering process for security guard auditing services.

"I always knew I wanted to try something. I knew in my head I could get a third party to talk to a company to gain a bribe," he said.

"It really kicked in. I really saw an opportunity when the prices came in. I know I've done wrong. I know I'm guilty and I'm sorry."

ICAC used phone taps to help catch Khan and the money paid by Unisec was discovered at his home.

Counsel assisting the commission Carolyn Davenport said it was the seventh ICAC public inquiry involving corruption at Railcorp since 1992.

"This investigation and hearing will show that the system is unable to prevent RailCorp employees from soliciting bribes from companies seeking to do business with the corporation," she said.

A RailCorp spokeswoman told AAP the agency would not be commenting on the allegations until the inquiry concludes.

aap 15 Jun 2009