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You are here: Home > Diving News > railcrop boss's diving scam
railcrop boss's diving scam
A local diving directory

Published:Tue, Dec 11,2007

news BY Daily Telegraph

He is accused of using more than $200,000 in bribes to indulge his passion for scuba diving.

Stanic, a RailCorp project manager, spent so much money on underwater adventures that Frog Dive Scuba Centres named him its "Most Travelled Diver" in 2002, 2003, 2004 and 2005.

His face appears throughout photo galleries on the Frog Dive website, including at the "MV Indulgence"' weekend and a trip to the luxury Vanuatu island of Bokissa.

The Independent Commission Against Corruption (ICAC) says the money Stanic was spending at Frog Dive was rorted from NSW taxpayers' in collusion with three crooked contractors.

Stanic denies the charges as does "friend" and contractor Mark Palombo. But contractors Nick Kouras and Paul Szoboslay both admitted to the ICAC that they had made multiple cash and cheque payments to Stanic from 2000 until this year.

Counsel Assisting, Chris Ronalds SC, told the inquiry that for commissions of 5-10 per cent - and sometimes 50 per cent on hours not actually worked - Stanic made sure a total of $2 million worth of contract painting and maintenance work went their way.

Even when they were removed from RailCorp's approved contractor panel system in 2006 the trio were still assigned work by Stanic.

He is the fourth RailCorp employee to be accused by the ICAC of abusing his position in assigning work to private contractors and taking kickbacks on the profits.

Allan Walker, Michael Blackstock and Renea Hughes have already admitted to the corruption watchdog their part in what is estimated to be a scam worth $6 million - with further accusations to come next year.

A note tendered to the inquiry from Mr Kouras to a man running his business while he would be overseas states: "Do invoices every Monday in Ivan's office . . . note, add 10 per cent on every invoice".

Emails and financial spreadsheets seized from Mark Palombo are headed "Ivan's Commission".

Mr Palombo maintained that the $38,000 he appears to have paid Stanic was actually paying back a personal loan of $22,000.

"It seems there is overwhelming evidence you were paying commissions to Mr Stanic, ," deputy commissioner Theresa Hamilton said.

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