The GoSafe consortium which operates the State’s privatised speed camera contract has been chosen to provide the service for the next five years in a deal worth up to €115.5 million.
News of the contract award comes as a former director of Redflex Holdings – which owns 16 per cent of GoSafe – is awaiting sentencing on August 10th in the US having admitted to fraud, corruption and bribery.
Karen Finley who was chief executive officer of Redflex’s US subsidiary and a director of the Australian parent company Redflex Holdings pleaded guilty in a Chicago court earlier this year to making illegal payments to a Chicago city official.
Sentencing was held over however as Ms Finley also pleaded guilty to bribery and fraud in a scheme that funnelled campaign contributions to elected officials in Columbus and Cincinnati, Ohio, to either obtain or continue the contracts for Redflex.
The US Federal Bureau of Investigation said Ms Finley also organised cash and other personal financial benefits for the city of Chicago official knowing that the payments would help persuade the city to award red-light camera contracts to Redflex.
Redflex Holdings chairman of the Australian Board of Directors Max Findlay and board member Ian Davis subsequently resigned.
Disclosure
Redflex Holdings recently disclosed to the Australian Securities Exchange it is named as a defendant in a €330 million compensation case taken by the City of Chicago.
In a second disclosure to the Australian Securities Exchange, Redflex Holdings revealed it is co-operating with a linked ongoing criminal investigation by Australia’s federal police into the conduct of former employees.
However, the Australian-based company has strongly denied any knowledge of any alleged wrongdoing, according to papers that have been seen by The Irish Times.
The remaining GoSafe shareholders are Co Kerry businessman Xavier McAuliffe’s Spectra and a French company, Egis, who own 42 per cent each.
The GoSafe operating company Road Safety Operations, is based in the Isle of Man. The company said it is precluded by its contract from commenting to the media.
In June some four separate tenderers were told by the Department of Justice that the contract for five years with a possible extension of two more, was to be awarded to the GoSafe consortium.
The unsuccessful bidders were given two weeks to raise any objections and it is understood at least two did so. The contract is due to be operational by November.
