Digital upgrade costs are turning Opal into a wild card
The Herald 's Matt O'Sullivan revealed the cost blowout is also likely to delay the scheduled completion of the work for at least a year.
Dubbed Opal Next Gen, the modernisation of the ticketing system was first announced in mid-2022 by the previous NSW Coalition government, which provided conditional funding for the project over three years. It involves the replacement of thousands of electronic readers and back-office billing. Infrastructure NSW has changed Opal Next Gen from a 'tier-two' to a 'tier-one' project, which means the transport agency now has to be 90 per cent sure its final cost price will fall within budget.
More than eight months after tenders closed, Transport for NSW is yet to announce short-listed bidders for the main contract to overhaul the ticketing system, and another to supply Opal readers and other technology for the state's fleet of buses. The government has been dragging the chain on an Opal upgrade for years, but the new upgrade includes digital transit cards that allow the use of smartphones.
The government had planned to complete the rollout of the new Opal system next year. However, the Herald has previously reported that internal Transport for NSW documents show it has been targeting September 2027 as a 'go-live' date for the ticketing system.
Automatic ticketing has had an unsettled history in NSW. The $1.2 billion contract for the public transport smartcard, it should be remembered, was signed by former Labor transport minister David Campbell but only after years of fruitless persistence with the T-Card. The Barry O'Farrell-led Coalition in 2012 started introducing the Opal card, which is now used almost ubiquitously across Sydney's transport system. For the most part, it has been a great success.
Now comes the realisation that upgrading transport ticketing systems is problematic for state governments.
In Victoria, overhauling the Myki Card system is a major political and financial liability for the Labor government. This year's budget revealed the overhaul was running 18 months late and was already $137 million over budget. The Victorian government and Conduent, the US company installing and operating the new system under a $1.8 billion contract, have been at loggerheads over unexpected costs and technical issues that have put back scheduled completion until 2028.
As noted, in NSW, tenders closed for contracts to overhaul the ticketing system and supply Opal readers and other technology for the state's fleet of buses last year. Transport for NSW secretary Josh Murray said nine companies were in the mix and contracts were expected to be signed early next year, but he did not wish to rush it.
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The Advertiser
4 hours ago
- The Advertiser
ICAC zeroes in on Newcastle engineer's slippery slope to cash kickbacks
"WE should get on the bandwagon" were the words Ibrahim Helmy allegedly used to first lure former Newcastle-based senior projects engineer David Liu into his web of corruption. "Basically it was an indication that we should get in bed with the contractors, inflate the rates, and get cash benefits," Mr Liu said. The conversation started with Mr Liu questioning Mr Helmy, a senior Transport for NSW figure, about the rates of various subcontractors. Mr Liu felt that some of their regular contractors, such as Protection Barriers, were ripping them off and that their prices were too high. Mr Helmy called it a COVID tax, inflation, because "things were getting expensive", Mr Liu said. In later conversations, the tone became more serious and the specifics of the how-to were discussed. During work-related phone calls, Mr Helmy made comments about having "a really safe way" to get cash kickbacks if they wanted to, Mr Liu said. "He said to me can you inflate the rates and I was shocked because I thought how could you ... how could you do that with all the oversight," Mr Liu said. "I didn't think it was feasible. He said 'I have my ways'." It was as simple as changing the rate, for example if the rate was $100 a linear metre, he would change it to $120'. That was one of the ways, he said. Another way was to add "extra services" such as traffic control, and a variety of things into the invoice, Mr Liu said. He was shocked that a procurement officer could do that Mr Liu said, but he also went along with it, and is accused of receiving more than $100,000 in kickbacks. Rob Ranken SC, Counsel Assisting the Independent Commission Against Corruption (ICAC) in its inquiry into Transport for NSW corruption, asked him why he didn't report it. Mr Liu said he had done some soul searching about that, and part of the explanation was that he felt his career was going nowhere. "I think at that time a senior project position came up and I didn't win it," Mr Liu said. "It's fair to say I didn't do well in the interview. I felt, for whatever it's worth, no matter how good I am, this is it, this is my life forever. That's not an excuse though." Mr Liu said in other conversations with Mr Helmy they discussed in greater depth how the rort would work. "I asked, if you can inflate the rates, why do you need me," Mr Liu said. If he added extra items he needed me to look the other way, he said. Mr Helmy would supply a rate from the contractors on the panel, and then Mr Liu was to say how much money was left in the budget, and they could add that on to the bill and take it for themselves. "Basically he just wanted to add stuff and I just had to sign it when the invoice was issued that those additional items that were provided actually weren't provided," Mr Liu said. The alleged rigging and inflation of contracts by Transport for NSW procurement officer Mr Helmy, who is in hiding, between 2012 and 2024 has come under the microscope of the NSW Independent Commission Against Corruption (ICAC). ICAC is investigating allegations Mr Helmy was involved in corrupt relationships with companies that were paid at least $343 million in contracts. He is wanted by police and is believed to be in hiding after a failed attempt to leave Australia on a US passport in September. He is the principal - but not only - official involved in the ICAC inquiry. Investigations led to raids in September on the head office of Protection Barriers, one of the state's biggest roadworks companies, headed by Jason Chellew. Mr Ranken said in his opening address that he expected the evidence to show that Mr Liu received between $100,000 and $150,000 from Mr Chellew as part of a hire truck arrangement. "WE should get on the bandwagon" were the words Ibrahim Helmy allegedly used to first lure former Newcastle-based senior projects engineer David Liu into his web of corruption. "Basically it was an indication that we should get in bed with the contractors, inflate the rates, and get cash benefits," Mr Liu said. The conversation started with Mr Liu questioning Mr Helmy, a senior Transport for NSW figure, about the rates of various subcontractors. Mr Liu felt that some of their regular contractors, such as Protection Barriers, were ripping them off and that their prices were too high. Mr Helmy called it a COVID tax, inflation, because "things were getting expensive", Mr Liu said. In later conversations, the tone became more serious and the specifics of the how-to were discussed. During work-related phone calls, Mr Helmy made comments about having "a really safe way" to get cash kickbacks if they wanted to, Mr Liu said. "He said to me can you inflate the rates and I was shocked because I thought how could you ... how could you do that with all the oversight," Mr Liu said. "I didn't think it was feasible. He said 'I have my ways'." It was as simple as changing the rate, for example if the rate was $100 a linear metre, he would change it to $120'. That was one of the ways, he said. Another way was to add "extra services" such as traffic control, and a variety of things into the invoice, Mr Liu said. He was shocked that a procurement officer could do that Mr Liu said, but he also went along with it, and is accused of receiving more than $100,000 in kickbacks. Rob Ranken SC, Counsel Assisting the Independent Commission Against Corruption (ICAC) in its inquiry into Transport for NSW corruption, asked him why he didn't report it. Mr Liu said he had done some soul searching about that, and part of the explanation was that he felt his career was going nowhere. "I think at that time a senior project position came up and I didn't win it," Mr Liu said. "It's fair to say I didn't do well in the interview. I felt, for whatever it's worth, no matter how good I am, this is it, this is my life forever. That's not an excuse though." Mr Liu said in other conversations with Mr Helmy they discussed in greater depth how the rort would work. "I asked, if you can inflate the rates, why do you need me," Mr Liu said. If he added extra items he needed me to look the other way, he said. Mr Helmy would supply a rate from the contractors on the panel, and then Mr Liu was to say how much money was left in the budget, and they could add that on to the bill and take it for themselves. "Basically he just wanted to add stuff and I just had to sign it when the invoice was issued that those additional items that were provided actually weren't provided," Mr Liu said. The alleged rigging and inflation of contracts by Transport for NSW procurement officer Mr Helmy, who is in hiding, between 2012 and 2024 has come under the microscope of the NSW Independent Commission Against Corruption (ICAC). ICAC is investigating allegations Mr Helmy was involved in corrupt relationships with companies that were paid at least $343 million in contracts. He is wanted by police and is believed to be in hiding after a failed attempt to leave Australia on a US passport in September. He is the principal - but not only - official involved in the ICAC inquiry. Investigations led to raids in September on the head office of Protection Barriers, one of the state's biggest roadworks companies, headed by Jason Chellew. Mr Ranken said in his opening address that he expected the evidence to show that Mr Liu received between $100,000 and $150,000 from Mr Chellew as part of a hire truck arrangement. "WE should get on the bandwagon" were the words Ibrahim Helmy allegedly used to first lure former Newcastle-based senior projects engineer David Liu into his web of corruption. "Basically it was an indication that we should get in bed with the contractors, inflate the rates, and get cash benefits," Mr Liu said. The conversation started with Mr Liu questioning Mr Helmy, a senior Transport for NSW figure, about the rates of various subcontractors. Mr Liu felt that some of their regular contractors, such as Protection Barriers, were ripping them off and that their prices were too high. Mr Helmy called it a COVID tax, inflation, because "things were getting expensive", Mr Liu said. In later conversations, the tone became more serious and the specifics of the how-to were discussed. During work-related phone calls, Mr Helmy made comments about having "a really safe way" to get cash kickbacks if they wanted to, Mr Liu said. "He said to me can you inflate the rates and I was shocked because I thought how could you ... how could you do that with all the oversight," Mr Liu said. "I didn't think it was feasible. He said 'I have my ways'." It was as simple as changing the rate, for example if the rate was $100 a linear metre, he would change it to $120'. That was one of the ways, he said. Another way was to add "extra services" such as traffic control, and a variety of things into the invoice, Mr Liu said. He was shocked that a procurement officer could do that Mr Liu said, but he also went along with it, and is accused of receiving more than $100,000 in kickbacks. Rob Ranken SC, Counsel Assisting the Independent Commission Against Corruption (ICAC) in its inquiry into Transport for NSW corruption, asked him why he didn't report it. Mr Liu said he had done some soul searching about that, and part of the explanation was that he felt his career was going nowhere. "I think at that time a senior project position came up and I didn't win it," Mr Liu said. "It's fair to say I didn't do well in the interview. I felt, for whatever it's worth, no matter how good I am, this is it, this is my life forever. That's not an excuse though." Mr Liu said in other conversations with Mr Helmy they discussed in greater depth how the rort would work. "I asked, if you can inflate the rates, why do you need me," Mr Liu said. If he added extra items he needed me to look the other way, he said. Mr Helmy would supply a rate from the contractors on the panel, and then Mr Liu was to say how much money was left in the budget, and they could add that on to the bill and take it for themselves. "Basically he just wanted to add stuff and I just had to sign it when the invoice was issued that those additional items that were provided actually weren't provided," Mr Liu said. The alleged rigging and inflation of contracts by Transport for NSW procurement officer Mr Helmy, who is in hiding, between 2012 and 2024 has come under the microscope of the NSW Independent Commission Against Corruption (ICAC). ICAC is investigating allegations Mr Helmy was involved in corrupt relationships with companies that were paid at least $343 million in contracts. He is wanted by police and is believed to be in hiding after a failed attempt to leave Australia on a US passport in September. He is the principal - but not only - official involved in the ICAC inquiry. Investigations led to raids in September on the head office of Protection Barriers, one of the state's biggest roadworks companies, headed by Jason Chellew. Mr Ranken said in his opening address that he expected the evidence to show that Mr Liu received between $100,000 and $150,000 from Mr Chellew as part of a hire truck arrangement. "WE should get on the bandwagon" were the words Ibrahim Helmy allegedly used to first lure former Newcastle-based senior projects engineer David Liu into his web of corruption. "Basically it was an indication that we should get in bed with the contractors, inflate the rates, and get cash benefits," Mr Liu said. The conversation started with Mr Liu questioning Mr Helmy, a senior Transport for NSW figure, about the rates of various subcontractors. Mr Liu felt that some of their regular contractors, such as Protection Barriers, were ripping them off and that their prices were too high. Mr Helmy called it a COVID tax, inflation, because "things were getting expensive", Mr Liu said. In later conversations, the tone became more serious and the specifics of the how-to were discussed. During work-related phone calls, Mr Helmy made comments about having "a really safe way" to get cash kickbacks if they wanted to, Mr Liu said. "He said to me can you inflate the rates and I was shocked because I thought how could you ... how could you do that with all the oversight," Mr Liu said. "I didn't think it was feasible. He said 'I have my ways'." It was as simple as changing the rate, for example if the rate was $100 a linear metre, he would change it to $120'. That was one of the ways, he said. Another way was to add "extra services" such as traffic control, and a variety of things into the invoice, Mr Liu said. He was shocked that a procurement officer could do that Mr Liu said, but he also went along with it, and is accused of receiving more than $100,000 in kickbacks. Rob Ranken SC, Counsel Assisting the Independent Commission Against Corruption (ICAC) in its inquiry into Transport for NSW corruption, asked him why he didn't report it. Mr Liu said he had done some soul searching about that, and part of the explanation was that he felt his career was going nowhere. "I think at that time a senior project position came up and I didn't win it," Mr Liu said. "It's fair to say I didn't do well in the interview. I felt, for whatever it's worth, no matter how good I am, this is it, this is my life forever. That's not an excuse though." Mr Liu said in other conversations with Mr Helmy they discussed in greater depth how the rort would work. "I asked, if you can inflate the rates, why do you need me," Mr Liu said. If he added extra items he needed me to look the other way, he said. Mr Helmy would supply a rate from the contractors on the panel, and then Mr Liu was to say how much money was left in the budget, and they could add that on to the bill and take it for themselves. "Basically he just wanted to add stuff and I just had to sign it when the invoice was issued that those additional items that were provided actually weren't provided," Mr Liu said. The alleged rigging and inflation of contracts by Transport for NSW procurement officer Mr Helmy, who is in hiding, between 2012 and 2024 has come under the microscope of the NSW Independent Commission Against Corruption (ICAC). ICAC is investigating allegations Mr Helmy was involved in corrupt relationships with companies that were paid at least $343 million in contracts. He is wanted by police and is believed to be in hiding after a failed attempt to leave Australia on a US passport in September. He is the principal - but not only - official involved in the ICAC inquiry. Investigations led to raids in September on the head office of Protection Barriers, one of the state's biggest roadworks companies, headed by Jason Chellew. Mr Ranken said in his opening address that he expected the evidence to show that Mr Liu received between $100,000 and $150,000 from Mr Chellew as part of a hire truck arrangement.
AU Financial Review
6 hours ago
- AU Financial Review
WFH culture in Victoria ‘took hold from COVID lockdowns'
Victoria's long periods of COVID lockdowns created a culture of working from home that is not as entrenched in other parts of the country, Western Australia's premier said yesterday as other state leaders distanced themselves from Jacinta Allan's plans to legislate a right to hybrid work. Employers have criticised the Allan government's promise to enshrine remote working arrangements into Victorian law as productivity-sapping and anti-business, and all other mainland states on Tuesday said they had no plans to follow suit.
Sydney Morning Herald
8 hours ago
- Sydney Morning Herald
Fugitive Transport manager takes delight at ‘dodgy contact' in WhatsApp exchange
Helmy, 38, is alleged to have pocketed $11.5 million in kickbacks – including bundles of cash, gold bullion and cryptocurrency – over 15 years from contractors, in return for them being awarded work. He failed to appear before the ICAC in May and police have a warrant out for his arrest. Loading ICAC counsel assisting Rob Ranken, SC, asked Harrison whether Helmy was referring to him in the WhatsApp messages, as well as whether it was obvious that the reason he was providing discounted concrete to the then-Transport official's friend was so that his company Kerway would get favourable treatment. In response, Harrison said he had no idea who the then-Transport for NSW procurement manager was referring to. 'You'll have to ask him,' Harrison responded. Harrison was also shown WhatsApp messages between Helmy and Taki in February 2024 in which Helmy said he was 'meeting bloody Wayne' and would be confirming 'the concrete things'. Asked whether it was the case that Helmy wanted to talk to him about squaring up matters about the concrete he had provided Taki, Harrison denied that was the case and said they were their WhatsApp messages. It has been alleged that Kerway Asphalting was awarded about $35 million of work by Transport for NSW between September 2019 and May this year as a result of corrupt dealings with Helmy. Rankin said it appeared that supplies of concrete to Taki had ended when ICAC's investigation had become public last year, which was a 'very odd coincidence'. Harrison rejected that assertion, and responded: 'Maybe he has finished his concreting.' Appearing as a witness late on Tuesday, former Transport for NSW senior project engineer David Liu confirmed that he received cash benefits in late 2021 from Jason Chellew, the founder of now-failed Grafton contractor Protection Barriers. Liu, who left Transport for NSW last April after about 17 years, said he came to receive the cash benefits after Helmy convinced him to become involved in the arrangement with contractors. He recalled a conversation during which Helmy joked that he should 'get on the bandwagon' and 'get in bed with contractors'. During a second conversation, Liu said Helmy got more serious and made suggestions about how he had 'this really safe way'. 'He said to me, 'you can inflate the rates'. I was shocked,' Liu said, clarifying that he was shocked that a Transport for NSW procurement officer could inflate contractors' rates given the oversight at the agency. 'He said, 'I just changed the rate' – clear as day.' Liu said Helmy wanted him to 'look the other way' if he wanted to add extra items to contractors' work, and sign off on it when an invoice was issued. Questioned about whether he thought what Helmy was suggesting at the time was improper, Liu said: 'I ask myself the question, 'why did you do this'?' Liu said the reasons he became involved were 'personal', explaining that he felt his career was 'going nowhere' after he had missed out on a promotion. The hearing continues.
