3/17/2013 7:52:00 AM News investigation reveals Redflex bribery in Chicago
Special to the Tribune
PRESCOTT VALLEY - Town government officials might have some questions for Redflex Traffic Systems in response to a Chicago Tribune expose of corruption involving the company with Chicago city government.
"When we enter into contract negotiations, we will certainly be asking some questions of their management team and how their Chicago difficulties will play into the management of the firm," Prescott Valley Town Manager Larry Tarkowski said.
He said the town's contract will be up for renewal in September with Redflex, which has provided photo enforcement in Prescott Valley since October 2006.
Tarkowski, other town government and Police Department officials obtained copies of the Tribune story, which reported a $2 million bribery scheme.
The Tribune reported in early March that an internal probe of Redflex and a parallel investigation by the city's inspector general - prompted by coverage in the Tribune - cost Redflex its largest North American contract and all of its top executives. Redflex Traffic Systems is based in Phoenix and is the U.S. subsidiary of Astrailia-based Redflex Holdings Ltd.
Redflex's outside investigator, former Chicago Inspector General David Hoffman, found that Redflex paid $2 million to a Chicago consultant in a highly suspicious arrangement apparently intended to funnel some of the money to the former transportation staffer who oversaw the Redflex contract, the Tribune reported.
The bulk of the consultant's fees - about $1.6 million - were paid during a four-year period that started in 2007.
Jody Ryan, communications director for Redflex in Phoenix, referred to a statement that Robert DeVincenzi, president and chief executive officer of Redflex Holdings and CEO for Redflex Traffic Systems, issued:
"We recently announced new leadership and a comprehensive series of system improvements in our business to support the highest ethical standards. We are working, each day, to recapture the trust of our clients, the public and our employees."