What's $428,000 between mates?
That's how much Kevin McCarthy allegedly loaned to an executive in charge of awarding lucrative contracts for which his company had tendered, the NSW corruption watchdog has heard.
The Independent Commission Against Corruption (ICAC) is investigating allegations former RailCorp executive Joseph Camilleri sought "loans" from colleagues and contractors to help his gambling-addict daughter.
Mr McCarthy's loans to Mr Camilleri started with $20,000 in October 2010 at the time his company, UGL, was tendering for a RailCorp contract.
He said he could not see how the money he paid to his long-time friend, Mr Camilleri, could lead to a conflict of interest.
"I knew from the long-term relationship that Joe and I'd had ... that we trusted each other, that we had a high degree of integrity and that there would not be a conflict created," Mr McCarthy told ICAC.
"I didn't think my personal loan to Joe would in any way influence his decision making.
Counsel assisting the commission Nicholas Polin countered: "You gave $20,000 to a person who's influential in potentially deciding on a billion dollar contract".
Mr McCarthy replied: "I lent $20,000 to a good friend."
UGL was tendering for a billion-dollar contract it had held for 17 years but was at risk of losing.
UGL internal emails tendered in ICAC show Mr Camilleri had gone from backing the company to being "neutral and no longer a strong supporter".
"Although he will not be negative either," Mr McCarthy wrote.
"There is a feeling within others in RailCrop that `UGL owes RailCorp'."
The commission heard earlier this week that Mr McCarthy had lent Mr Camilleri a total of $428,000.
Also on Wednesday, former RailCorp manager Andrew Rogers told ICAC how he was pushed for a $10,000 personal "loan" by his boss Mr Camilleri, who was earning $300,000 a year.
After speaking to his wife, Mr Rogers was called into a side room for a private chat with Mr Camilleri.
"At which point he immediately opened by saying, 'Where's the cash?'," the ICAC heard.
"He said to me, 'Where am I going to get the cash?' ... he said 'I need the cash'."
Mr Rogers told his boss he felt compromised and wouldn't loan him the money.
"And then he said 'OK, this conversation hasn't happened' and we walked out the door."
With the help of his sister Carmen Attard, who works for the Department of Family and Community Services, Mr Camilleri raised $1.5 million for his daughter, who allegedly spent the money on gambling and overseas travel.
The inquiry continues before new ICAC Commissioner Megan Latham on Thursday.
