NSW Expanded Speed Camera Program Delayed: Report Photo:
Trevor Collett | Jun, 26 2013 | 2 Comments

The New South Wales government’s plan to dramatically expand its mobile speed-camera program has hit an unexpected roadblock.

Redflex Traffic Systems was initially awarded the contract from the NSW government to supply the 39 additional speed cameras for use on NSW roads.

But the company has since been caught up in a major corruption scandal in the US, dealing with allegations it spent $2 million in bribes to officials in order to secure a contract.

David Kidwell from the Chicago Tribune told Nine News in Australia that the scandal was making headlines in Chicago.

“If the allegations are true, and $2 million in bribes were paid to city hall in order for them to obtain this kind of contract, it would be among the largest single bribery schemes in Chicago history,” Mr Kidwell said.

The scandal broke earlier this year, with the knock-on effect seeing Redflex lose potential contracts in Florida, Arizona and now NSW, Australia. It was hoped that the Florida contract would be the biggest in North America.

From a high this year of over $1.70, Redflex shares dipped well below the $1.00 mark on the Australian Stock Exchange when the scandal broke, recovering to be around the $1.10 mark at present.

The NSW government has now put the speed camera expansion program out to tender again, with an official announcement expected in the coming weeks.

Meanwhile, the delay is expected to cost the NSW government up to $11 million in lost revenue, with the additional speed cameras not expected to be operational until at least January 2014.

TMR Comments
Latest Comments