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Category: Rail Transport / Government and Politics

WA Government rejects calls for inquiry over contractor share price jump

Wednesday, 24 Feb 2016 03:25:21 | Jacob Kagi

The project includes a section of underground rail from Bayswater to the airport. (Supplied: Public Transport Authority)

The WA Premier has brushed aside calls for the Government to investigate the probity of its employees following a jump in the share price of a Forrestfield Airport Link contractor, saying that is the role of the ASX.

The stock exchange lodged a price query with NRW Holdings, over when the contractor learned its joint venture with Salini Impreglio had been selected as the preferred bidder to build the airport rail line.

That followed a substantial jump in the company's share price in the days leading up to the official announcement.

NRW's share price finished 30 per cent higher on February 15, a day which also saw a much bigger trading volume than previous months.

That share price increase came days ahead of the official announcement of the joint venture's selection for the $2 billion project on February 18.

In a response to the ASX, the company said it became aware of its selection after trading closed on February 17, and requested a trading halt before the market opened the next day.

NRW then resumed trading after the announcement was made to the market, seeing its share price jump further.

Government says due process was followed

Labor quizzed Transport Minister Dean Nalder in State Parliament yesterday about what he had done to ensure no agency or employee under his control had acted on the information prior to its official announcement, and called for an inquiry.

"The advice that I have is that all due process was followed," Mr Nalder told Parliament.

"The successful tenderer was notified following the closure of business on Wednesday afternoon.

"With regard to any activity that might occur on the stock market in the preceding period ... it is a matter for the Australian Stock Exchange to follow up."

Premier Colin Barnett took it a step further, saying it would be "entirely inappropriate" for the Government to investigate, because that was the role of the ASX.

But Labor frontbencher Rita Saffioti said the Government had a duty to ensure everyone under its control had acted properly.

"It was a significant announcement that affected two companies and we need to make sure that the processes are watertight so there is not suspicion around these announcements," she said.

"Of course the ASX has to investigate it, but the minister should assure himself that processes are watertight in his agency."

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