RailCorp CIO shown door after corruption allegations

David M Williams
Thursday, 11 June 2009 03:50

Business IT - Security

During an interview Coleman spoke about RailCorp’s lack of processes and methodologies as well as an infrastructure that had gone down both the Windows and Novell path giving an overall mess of technologies.

Yet Coleman, as previously, relished the challenges and expressed her excitement about being able to create the organisation required.

She cited a key to success being the backing she received from the CEO and board who understood that technology can and should be a key element of a successful organisation.

Despite this, it was noted Coleman was direct in her speech and this did not always go down well. She claimed she does indeed articulate her dissatisfaction, but equally her appreciation of good work.

That brings us to today and the news Coleman has been stood down from her position, and escorted from her office by security.

A message has been left for Coleman herself, requesting comment, but at this time no reply has been received.

Paul Rea, RailCorp's Media Manager says,

"An allegation of dishonest or corrupt behaviour made against a senior RailCorp manager has been referred to ICAC.

RailCorp takes such allegations very seriously and the matter is being investigated.

While it is not appropriate to comment further on this matter, RailCorp’s policy is to take swift action in relation to any allegation of dishonest or corrupt conduct reported within the organisation.

RailCorp's ICT programs and projects remain unchanged."

It would be unwise to speculate as to the nature of the allegation and certainly as to its truthness or falseness, but it is easy to imagine the scope for corruption that would exist in an institution that has traditionally been associated with such behaviour.

Just 18 months ago ICAC made 40 recommendations to RailCorp related to other cases in an effort to stamp out corruption.

In the case of a CIO there can be access to financial and personnel systems without restriction. There can be opportunities to influence the decisions made by supplier panels and the awarding of contracts.

A colleague who had worked in banking once told me that his employer had a policy that no IT staff member was to have administrative access to both the front-end and back-end systems used due to the potential for fraud. I’ve kept his comment in mind but certainly seen no end of companies where such access did exist.

Again, there is no certainty that Coleman has indeed acted in any corrupt manner, but the lessons are there for CIOs to consider the unrivalled access they have to company data. It’s one challenge to take up the case for IT as a strategic business unit. It’s another to implement a secure, but transparent, infrastructure that can avoid any doubt of misuse of sensitive data.