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N/A | National Redflex ASX Announcement 17/10/2012

Discussion in 'Politics, Laws, Government & Insurance' at netrider.net.au started by Sir Ride Alot, Oct 18, 2012.

    ACN 069 306 216

    Release to Australian Securities Exchange

    17 October 2012

    City of Chicago

    Redflex has held contracts with the City of Chicago since 2003 to provide automated traffic enforcement products. Under the current contracts, entered into in 2008, Redflex installed and manages 384 automated enforcement systems in the City of Chicago. The contracts run until 31 January 2013, with the City of Chicago holding options to extend for a period of up to two years. In the 2012 financial year, the Chicago contracts contributed 13% of Redflex’s revenue.

    During an internal investigation in September 2010, Redflex discovered that one of its employees paid for a hotel room for a City of Chicago employee. The expense totaled US$910. Redflex disclosed this incident to the Chicago Board of Ethics on 9 October 2012.

    Redflex understands that the Chicago Board of Ethics, in conjunction with City Corporation Counsel, will investigate the circumstances of the US$910 payment and decide on what (if any) penalties may be applied against the company. The Board of Ethics has authority to issue a variety of penalties ranging from monetary penalties to debarment of Redflex's contract with the City. Additionally, it is possible that the City’s Inspector General's Office may conduct an independent investigation related to this incident.

    Redflex has separately received notification today from the Department of Procurement Services of the City of Chicago that, for reasons relating to the payment of the hotel room charge, it has been deemed a non-responsible bidder for the purposes of an Automated Speed Enforcement Program tender process in which the company has been participating. As a result, Redflex’s proposal in relation to this tender has been rejected. This tender process relates to products and services that are separate from Redflex’s existing contracts with the City of Chicago. In addition to the actions regarding the Automated Speed Enforcement Program tender, the City has also notified the Company that the current in-force contracts for Redlight enforcement are in breach.

    Redflex is strongly committed to ethical business practices. The company has taken multiple steps to ensure that it operates in compliance with all laws and regulations. These steps include but are not limited to comprehensive ethics training for employees, restrictions on lobbyists, oversight by senior executives of all government contracts, the establishment of a whistleblower hotline, and the creation of a new Director of Procurement position to enforce strict adherence to procurement bidding and third party services engagements.

    Redflex will update the market in accordance with its disclosure obligations in relation to future developments in its contractual arrangements with the City of Chicago.

    For further information: Ron Johnson
    Chief Financial Officer

    +61 3 9674 1754 Marilyn Stephens
    Company Secretary
    +61 3 9674 1712

    Link can be found here. Type in the company’s code RDF into the search box

  2. "restriction on lobyists".... uh huh. so a company that profits from road safety lobying decision makes.... yeah it's ALL about safety.