Yarra Trams fires whistleblower and investigation lawyer before probe ends
A whistleblower alleges company leaders approved millions in early payments to vendors to avoid penalties for missing social procurement targets.
In April, Yarra Trams' head of procurement submitted a 34-page report. The report said millions in unusual advance payments went to vendors.
The company rushed these payments to meet social procurement targets by June 30. Examples included $500,000 to a security provider.
There was $300,000 for custom uniforms. Another $300,000 went for espresso machines and barista training.
The report said this was a last-minute effort to follow rules. These rules require part of the budget be spent with social enterprises.
Missing the targets meant penalties up to $1.5 million a year. An internal investigation started immediately with the company's senior lawyer.
But the whistleblower, the investigating lawyer, and four procurement staff were let go before the investigation finished. The Independent Broad-based Anti-corruption Commission interviewed at least one other former worker about the same claims.
Yarra Trams says all procurement followed strict fairness requirements.
- $7 billion, nine years
- Contract value and duration
- Up to $1.5 million
- Annual penalty for missing targets
- 34 pages
- Whistleblower report length
- 36 employees
- Total redundancies since December 2024
Why it mattersIf corruption is proven, the $7 billion Melbourne tram contract could be renegotiated. It could face penalties. This would affect public transport funding and service.
AustraliaVictorians depend on Yarra Trams for Melbourne transport, so financial mismanagement or contract breaches could affect service reliability and state government spending.
✓ Claims checked against the source. checked 2 h ago
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