Redflex Holdings: Difference between revisions
Grey.Label (talk | contribs) →Redflex operations: Modified wording regarding efficacy of cameras to identify key existing arguments on each side |
Grey.Label (talk | contribs) Fixed citation and wording regarding camera efficacy |
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In 2011, Redflex was the subject of a failed {{AU$|303.5}} million [[hostile takeover]] bid by the [[Macquarie Group]] and [[Carlyle Group]].<ref>{{cite news|last=Kelly|first=Ross|title=Redflex shareholders shun takeover offer from Macquarie, Carlyle|url=http://www.theaustralian.com.au/archive/business-old/redflex-shareholders-shun-takeover-offer-from-macquarie-carlyle/story-fn4xq4cj-1226052483025|accessdate=11 July 2012|newspaper=The Australian|date=9 May 2012|agency=Dow Jones Newswires}}</ref><ref>{{cite news|last=McIlwraith|first=Ian|title=Red faces in failed Redflex merger vote|url=http://www.smh.com.au/business/red-faces-in-failed-redflex-merger-vote-20110509-1efwb.html|accessdate=11 July 2012|newspaper=The Sydney Morning Herald|date=10 May 2012}}</ref> |
In 2011, Redflex was the subject of a failed {{AU$|303.5}} million [[hostile takeover]] bid by the [[Macquarie Group]] and [[Carlyle Group]].<ref>{{cite news|last=Kelly|first=Ross|title=Redflex shareholders shun takeover offer from Macquarie, Carlyle|url=http://www.theaustralian.com.au/archive/business-old/redflex-shareholders-shun-takeover-offer-from-macquarie-carlyle/story-fn4xq4cj-1226052483025|accessdate=11 July 2012|newspaper=The Australian|date=9 May 2012|agency=Dow Jones Newswires}}</ref><ref>{{cite news|last=McIlwraith|first=Ian|title=Red faces in failed Redflex merger vote|url=http://www.smh.com.au/business/red-faces-in-failed-redflex-merger-vote-20110509-1efwb.html|accessdate=11 July 2012|newspaper=The Sydney Morning Herald|date=10 May 2012}}</ref> |
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There is debate and ongoing research about the use of red light |
There is debate and ongoing research about the use of red light camera systems provided by organisations such as Redflex. Authorities cite public safety as the primary reason that the cameras are installed,<ref name=SanDiego>{{cite web |url=http://www.sandiego.gov/engineering-cip/services/public/rlphoto/faq.shtml |title=Red Light Photo Safety Program: Frequently Asked Questions |publisher=SanDiego.gov |accessdate=16 December 2010}}</ref> <ref name=Scotsman>{{cite news |title=Crossings Pose the Biggest Rail Threat |author=Alastair Dalton |newspaper=The Scotsman |location=Scotland |date=8 November 2004 |page=4}}</ref><ref name=Burger>{{cite web |url=http://www.bradenton.com/2010/07/01/v-print/2403523/5-year-crusade-concludes-with.html |title=5-year crusade concludes with red light law |author=Beth Burger |date=1 July 2010 |work=Bradenton Herald.com |accessdate=7 January 2011}}</ref> while opponents contend their use is more for financial gain than for safety.<ref name=Naples>{{cite web |url=http://www.naplesnews.com/news/2010/may/13/crist-signs-fla-bill-legalizing-red-light-cameras/ |title=Crist signs Fla. bill legalizing red light cameras |date=13 May 2010 |publisher=NaplesNews.com |accessdate=7 January 2011}}</ref><ref name=Motorists>{{cite web |url=http://www.motorists.org/red-light-cameras/objections |title=NMA Objections To Red Light Cameras |publisher=National Motorists Association |accessdate=9 January 2011}}</ref> Specific opposition to traffic enforcement cameras owned by Redflex has resulted in their removal in some cities, including Austin Texas. |
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==Chicago scandal== |
==Chicago scandal== |
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Revision as of 09:26, 9 August 2013
| Company type | Public (ASX: RDF) |
|---|---|
| Industry | Road traffic enforcement products and services |
| Founded | 1997 |
| Headquarters | South Melbourne, Victoria , Australia |
| Website | www.redflex.com.au |
Redflex Holdings provides vehicle monitoring and enforcement services for government, police, and traffic departments globally.
Redflex develops and manufactures a wide range of digital photo enforcement products and systems, utilizing advanced sensor and image capture technologies. Redflex solutions include fixed multi-lane, multi-sensor red light and speed enforcement solutions, mobile radar and laser speed enforcement systems and infringement processing software.
Redflex operations
Redflex operates primarily in Australia and the United States of America, and was listed on the Australian Securities Exchange in January 1997.[1] Redflex Holdings consists of two distinct companies; Redflex Traffic Systems Pty. Ltd. covering Australia and global operations and Redflex Traffic Systems Inc. covering the US market. The company works with partners in other countries, such as ChinaTel Group in the Peoples Republic of China.[2]
Redflex is based in South Melbourne, Victoria where it runs its systems engineering operation as well as its system integration and research and development programs.
In 2011, Redflex was the subject of a failed A$303.5 million hostile takeover bid by the Macquarie Group and Carlyle Group.[3][4]
There is debate and ongoing research about the use of red light camera systems provided by organisations such as Redflex. Authorities cite public safety as the primary reason that the cameras are installed,[5] [6][7] while opponents contend their use is more for financial gain than for safety.[8][9] Specific opposition to traffic enforcement cameras owned by Redflex has resulted in their removal in some cities, including Austin Texas.
Chicago scandal
In late 2010, Redflex executives were implicated in a bribery scandal in Chicago, Illinois. Following up on a letter from a whistleblower, the Chicago Tribune reported that a Redflex "consultant" had been making improper payments to a City of Chicago transportation official, John Bills, who was responsible for overseeing the awarding of contracts for the installation and operation of Chicago's widely hated red light camera system. The consultant, Marty O'Malley, who was a long time friend of Bills hired to oversee the Chicago contract, had received US$570,000 in commissions for the contract which had provided approximately US$100 million in revenue for Redflex. A two-year internal investigation conducted by Redflex reported in October 2012 that it had found only one instance of an inappropriate expenditure, a two-day hotel stay at the Arizona Biltmore for Bills paid for by the consultant who was subsequently sent for "anti-bribery" training. The Chicago contract is the company's largest in North America. With 384 cameras it provides 13% of Redflex Holdings' worldwide revenue.[10]
After the Chicago Tribune continued to find more evidence of improprieties in the relationship between Redflex executives and consultants and Chicago officials, Redflex hired "a former Chicago inspector general, David Hoffman" to lead a new investigation.[10] On 8 February 2013, Redflex received notification from the City of Chicago's Department of Procurement Services that it will "not be considered a responsible vendor for the new RFP for red light cameras that the City intends to issue in the near future." In response, Redflex Holdings chairman of the Australian board of Directors Max Findlay, board member Ian Davis and the company's top sales executive resigned after being blamed for the companies problems in Chicago.[11][12] "Hoffman's report, delivered to the Redflex board in February of 2013, found that Redflex had, indeed provided Bills with "lavish vacations" expensed "directly on the expense report" of Redflex executive vice president Aaron Rosenberg who had also "gifted" Bills with "trips to the Super Bowl and White Sox spring training over many years" valued at up to US$2 million. Hoffman also found that Redflex's president had knowledge of the arrangement and had lied to Chicago's administration about the extent of the wrongdoing.[13] On 20 February, Redflex fired Rosenberg and filed a lawsuit against him alleging "dishonest and unethical conduct".[11] In a 1 March email addressed to all employees, Redflex Holdings chief executive officer and President Robert DeVincenzi, who took over the company in September 2012, announced the resignations of three top executives in its Phoenix, Arizona headquarters: former president and CEO, Karen Finley; Redflex's general legal counsel, Andrejs Bunkse and the chief financial officer, Sean Nolen. The company has taken steps to improve its internal ethics by requiring its employees to take "anti-bribery and anti-corruption training".[10]
The growing scandal has caused trading in Redflex shares to be halted twice already, according to the Chicago Tribune.[14] In 2012, the company reported a net profit of $21.3 million. On 11 February 2013 Redflex announced the figure will be adjusted to US$5.5 million due to legal costs which, after taxes of US$6.2 million are paid, will likely result in the company posting a loss. In a further blow to the company, upon termination of the contract in June, Chicago takes ownership of Redflex cameras valued at US$11.3 million.[12]
References
- ^ ASX Listed Company Information Fact Sheet
- ^ "ChinaTel Group, Inc. Signs MOU with Redflex, Traffic Systems Pty. Ltd., Beijing China, Aiming to Establish High Speed Wireless Broadband Based Traffic Management Systems in the People's Republic of China". Reuters. 2009-01-15.
- ^ Kelly, Ross (9 May 2012). "Redflex shareholders shun takeover offer from Macquarie, Carlyle". The Australian. Dow Jones Newswires. Retrieved 11 July 2012.
- ^ McIlwraith, Ian (10 May 2012). "Red faces in failed Redflex merger vote". The Sydney Morning Herald. Retrieved 11 July 2012.
- ^ "Red Light Photo Safety Program: Frequently Asked Questions". SanDiego.gov. Retrieved 16 December 2010.
- ^ Alastair Dalton (8 November 2004). "Crossings Pose the Biggest Rail Threat". The Scotsman. Scotland. p. 4.
- ^ Beth Burger (1 July 2010). "5-year crusade concludes with red light law". Bradenton Herald.com. Retrieved 7 January 2011.
- ^ "Crist signs Fla. bill legalizing red light cameras". NaplesNews.com. 13 May 2010. Retrieved 7 January 2011.
- ^ "NMA Objections To Red Light Cameras". National Motorists Association. Retrieved 9 January 2011.
- ^ a b c Kidwell, David 3 more Redflex execs out as fallout continues for city's red light camera firm Chicago Tribune March 2, 2013
- ^ a b Kidwell, David Red-light camera firm fires VP, sues him over Chicago scandal Chicago Tribune February 22, 2013
- ^ a b Largest Red Light Camera Program In World Faces Widened Corruption Probe thenewspaper.com February 11, 2013
- ^ Kidwell, David Red light camera firm admits it likely bribed Chicago official Chicago Tribune March 2 2013
- ^ "2013-02-11 Update re Chicago and Earnings Guidance" (PDF). Redflex Holdings: Investor Relations. 2013-02-11.