
The Sunday Times
April 23, 2006
Company awarded N6 contract caught in corruption probe
Enda Leahy
THE parent company of an Irish construction firm awarded a €100m contract to build a section of the Dublin-Galway road was investigated for contract bid fixing and corruption, it has emerged.
Two employees of Jacobs Engineering, a multinational construction company, were convicted last year in America for their role in obtaining confidential details of competitors’ bids for an $800m (€650m) building project. During the trial it was alleged that Jacobs’ employees got inside information about rival bids for a convention centre in Chicago from a lobbying company it was paying. It subsequently won the contract, worth $11.5m (€9m), after reducing its estimate by more than one-third.
Last week Jacobs’ Irish arm, which lists American and Canadian-based directors on its accounts, was awarded the tender to provide engineering, procurement and construction services for a 20km stretch of road on the N6 between Ballinasloe and Athlone. The National Roads Authority (NRA), one of the bodies that awarded the contract, said it was unaware of the corruption investigation, conducted by the US attorney’s office. It said the tendering process it adopts is rigorously checked and all candidates are vetted for their ability to successfully and efficiently carry out a contract. There is no suggestion of any impropriety in relation to the N6 tender.
Jacobs has been operating in Ireland since 1974. The Irish company’s immediate controlling firm is Jacobs Engineering Espana SL, but the company’s ultimate parent is Jacobs Engineering Group Inc in America. Last year James Nagle and Elizabeth Koski, former employees of the American-based company, were sentenced to five years’ probation, given a $4,000 (€3,250) fine and ordered to perform 200 hours of community service for their role in the Chicago scandal.
Nagle, who was the Chicago office manager and the company’s chief operations manager in charge of obtaining the contract to expand the Chicago Metropolitan Pier and Exposition Authority (McPier) building, said senior staff throughout the company were also aware of secretly obtained information relating to their competitors’ bids for the deal. The company initially submitted a bid of $18.8m (€15.2m) but dropped it by $7.3m (€5.9m) to win the contract. This was after Nagle received inside information about a rival’s bid from Ronan Potts LLC, a lobbying firm.
In documents filed by the US attorney’s office, Nagle claimed the decision to reduce the bid was taken at an internal meeting of Jacobs personnel brought in from throughout America. The documents alleged: “At no point . . . did any Jacobs official object to having the information. To the contrary, the information was discussed in a routine manner throughout the process by [Nagle’s] supervisory panel.” In the months after the case, a Chicago schoolboard sued the company to recover $28m (€22.7m) after Jacobs’ renovations of three local high schools came in over budget.
Last week, inquiries to Jacobs in Ireland were passed to spokespeople in Scotland and America who refused to comment other than to say Nagle and Koski had been fired, and that winning the Galway contract was a success. The project, with a value of approximately €100m excluding land costs, is scheduled for completion in 2009. Jacobs is also designing a stretch of the N6 from Kinnegad and Kilbeggan after winning another tender last September.
The NRA said: “There are background checks in the tender process, but if any civil or criminal action has been taken against an organisation, particularly where there is a finding and they’ve been to trial and paid their dues, they would not be excluded from contractual contests.”
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Jacobs Engineering gets Ireland contract – Businessweek
Road deal with Jacobs – Galway Independent
Jacobs engineering case puts past contracts under scrutiny
NRA PRESS RELEASE<
National Roads Authority Appoints New Chief Executive
12th January, 2005
Mr. Barry (53) is currently Managing Director of Jacobs Engineering Ireland Ltd. from where he brings extensive experience in the design and construction of private and public sector projects both in Ireland and in a number of international locations.
A graduate of UCD in Civil Engineering, Mr. Barry worked on construction projects in Canada and Nigeria, before joining Jacobs in Dublin in 1980. During the 1980s he was promoted through various positions in contracts administration, project management and construction management. He moved to the USA in 1990, heading up Jacobs’ business in Northern California. He was appointed Managing Director of Jacobs Ireland in 1995. He spent a number of years in the UK as Managing Director of Jacobs UK business, returning again in 2000. He has also studied law in the Kings Inns and was called to the Bar in 1986.
Announcing the appointment, Mr. Peter Malone, Chairman, NRA said
“The Board is delighted to secure an executive of Fred’s calibre with proven technical and leadership qualities. This appointment underlines our commitment to deliver on the Government’s ambitious development programme creating a spine of high quality national routes between the nation’s cities for the common good. Fred will lead the NRA team in delivering on this mandate with an investment of up to €10 billion over the next five years, through a combination of the public purse and private investment, to developing an efficient and safe national network of motorways and main roads.”
For further information please contact
Caroline O’Brien, Communications Officer 01 6602511, Ext 254 086 6049430
New roads boss appointed on €300,000 salary package – Sunday Independent
Thu, Jan 13 05
A NEW chief executive has been appointed to the National Roads Authority (NRA) on a salary package in the region of €250,000 a year plus a performance bonus of 50pc, writes Treacy Hogan. Fred Barry (53), currently managing director of Jacobs Engineering Ireland Ltd, takes over in the top job from next April.
In a statement yesterday Peter Malone, NRA chairman said the appointment underlined its commitment to deliver on the Government’s ambitious development programme creating a spine of high quality national routes. “Fred will lead the NRA team in delivering on this mandate with an investment of up to €10bn over the next five years, through a combination of the public purse and private investment, to developing an efficient and safe national network of motorway and main roads,” he said./a>
The new chief executive is a civil engineering graduate of UCD and worked in construction projects in Canada and Nigeria before joining Jacobs Engineering in Dublin in 1980. Mr Barry also worked for Jacobs in the UK and the US. He succeeds Mr Michael Tobin.