Gary John HENWOOD

AKA  SNAKE

Late of Mittagong

NSW Redfern Police Academy Class # 149

NSW Police Cadet # 3057

New South Wales Police Force

Regd. #  17201

Rank:  NSW Police Cadet – commenced 8 July 1974 ( aged 17 years, 5 months, 12 days _

Probationary Constable – appointed 26 January 1976 ( aged 19 years, 0 months, 0 days )

Constable – appointed 26 January 1977

Senior Constable – appointed 26 January 1985

Final Rank = Senior Constable – Dismissed ( 1991 ? )

Stations:  ?, Five Dock HWP – 15 Division ( late 1970’s ), Darlinghurst GD’s – 3 Division – ( 1980’s ), HWP – Gundagai – Termination

Service:  From  8 July 1974  to  ? ? 1991? =  17? years Service

Awards:   No find on It’s An Honour

Born:   Saturday  26 January 1957

Died on:   ? ? 2013?

Age:  55 – 56

Cause:   Cancer – Lung

Event location:   ?

Event date:   ? ? 2013?

Funeral date:   ? ? 2013?

Funeral location:   ?

Wake location:  ?

Funeral Parlour:  ?

Buried at:   ?

 Memorial located at:   ?

GARY is NOT mentioned on the Police Wall of Remembrance * NOT JOB RELATED

 

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FURTHER INFORMATION IS NEEDED ABOUT THIS PERSON, THEIR LIFE, THEIR CAREER AND THEIR DEATH.

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May they forever Rest In Peace

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Canberra Times (ACT : 1926 – 1995),

Wednesday 29 May 1991, page 7

CONTENTS

PREFACE

Chapter 1 HENWOOD’S DECLINE

Chapter 2 COURSE OF INVESTIGATION

Chapter 3 REPAIRERS, CHASERS AND SPOTTERS

Chapter 4 PAYMENTS TO THE ZIMMERS?

Chapter 5 SCHONBERG, BECROFT AND OTHERS

Chapter 6 THE BOOKING OF TONY GLEESON

Chapter 7 STATUTORY MATTERS

Appendix 1 WITNESSES

Appendix 2 RULING ON APPLICATION TO EXCLUDE FUTURE WITNESSES

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REPORT ON INVESTIGATION INTO
POLICE AND TRUCK REPAIRERS

May 1991

This publication is available in other formats for the vision impaired upon request. Please advise of format needed, for example large print or as an ASCII file. This publication is available on the ICAC website in HTML format www.icac.nsw.gov.au

ISBN 0 7305 8667 7

© May 1991 – Copyright in this work is held by the Independent Commission Against Corruption. Division 3 of the Commonwealth Copyright Act 1968 recognises that limited further use of this material can occur for the purposes of `fair dealing’, for example; study, research or criticism etc. However, if you wish to make use of this material other than as permitted by the Copyright Act 1968, please write to the Commission at GPO Box 500, Sydney NSW 2001.

This report and further information about the Independent Commission Against Corruption can be found on the Commission’s website at www.icac.nsw.gov.au

>

PREFACE 4

CHAPTER 1 HENWOOD‘S DECLINE 6

Four Men – Two Companies 6

Henwood and Cool 7

Sale of Police Identity 7

The Jugiong Job 8

Other Matters 9

CHAPTER 2 COURSE OF INVESTIGATION 10

Terms of Reference 10

The Hearings 11

Investigation Confined 12

CHAPTER 3 REPAIRERS, CHASERS AND SPOTTERS 13

The Statutory Scheme 13

Chasers 14

Spotters 16

Family Matters 17

The Blue Book 18

CHAPTER 4 PAYMENTS TO THE ZIMMERS? 20

The Royans System 20

The Re-Car System 20

A Scam Against the Companies? 24

Cheque No. 126449 28

CHAPTER 5 SCHONBERG, BECROFT AND OTHERS 34

Senior Constable Schonberg 34

Sergeant Becroft 37

Senior Constable Unicomb 38

Constable Sweeney 39

Senior Constable Campbell 40

CHAPTER 6 THE BOOKING OF TONY GLEESON 43

The Known Facts 43

Cool’s Version 45

What Senior Constable Ross said 47

Other witnesses 48

Submissions and Assessment 50

CHAPTER 7 STATUTORY MATTERS 52

Affected Persons 52

Prosecution or Disciplinary Action 53

Section 78(2) 54

APPENDIX 1 WITNESSES 56

APPENDIX 2 RULING ON APPLICATION TO EXCLUDE FUTURE WITNESSES 57

PREFACE

This Report arises out of an investigation and hearing conducted in late 1990 and early 1991. As a result of work done by a joint police-ICAC team three police officers have been charged with serious offences. One of them has been sent to prison, and dismissed from the Police Service. Charges against the two others are pending. The Report suggests that consideration be given to criminal or disciplinary proceedings against a further two police officers.

In conducting investigations the Commission seeks to ascertain the truth. In its Reports to the Parliament it seeks to document the truth. In the course of doing so it is necessary to name people. The mere fact somebody is named in this Report does not mean he or she has done anything wrong at all.

Formal findings concerning individuals are contained in Chapter 7. What follows is a brief overview.

There are two truck repair firms at Wagga, generally known as Royans and Re-Car. Each of them employs field representatives, who are commonly called chasers. Each maintains a network of people who provide information about accidents, who are called spotters. Payment of spotting fees was contrary to law, but is no longer.

Two of the chasers were brothers named Syd and Bert Cool, who mostly worked in opposition to each other. Competition between Royans and Re-Car, and between the two Cool brothers, was intense. It is Syd Cool who originally brought information to the Commission. He is in prison, facing drug charges.

The most important allegation investigated was that payments were made to police officers for confidential information, or in the vernacular, that police were acting as spotters for the truck repair companies. The conclusion reached on the whole of the evidence is that this did happen, but the number of instances that can be fully detailed is relatively few. Close consideration has been given to three officers in particular:

Sergeant Lindsay Becroft of Hay

Senior Constable Peter Schonberg of Tarcutta

Constable David Zimmer of The Rock

The facts, circumstances and findings in relation to each are contained in the Report, which suggests that disciplinary proceedings against Schonberg are warranted.

The Report also examines the facts and circumstances surrounding the booking of a former chaser named Tony Gleeson, who died on 20 July 1987. The conclusion reached is that he was charged with speeding as a result of a plot hatched by Syd Cool, and that a major participant was a senior constable named Des Ross who is stationed at Gundagai. The taking of disciplinary proceedings against him is suggested.

Police officers inevitably handle a lot of confidential information. It must not be used otherwise than in the public interest, and must never be used for personal gain. This Report should have the effect of strongly discouraging that from happening, at least in relation to the heavy vehicle repair industry, and not just in the Riverina district

In the Report all quoted material is indented, and italics have been used to indicate the particular material quoted that is taken from hearing transcript. All quoted material is reproduced verbatim.

Generally surnames only have been used in relation to witnesses, without use of titles or ranks. This has been done in the interests of economy. No discourtesy is intended.

CHAPTER 1 HENWOOD’S DECLINE

During 1988 and 1989 a police officer stationed at Gundagai went bad. Indeed he went from bad to worse, and took a more junior colleague with him. This chapter chronicles his decline.

Four Men – Two Companies

Senior Constable Gary Henwood was born on 26 January 1957. He did highway patrol work. Henwood is known to his friends as “Snake” and that was his call sign when on the road. He lived in a house which adjoined the Gundagai Courthouse, and is opposite the police station: what might be called a good strategic position for somebody inclined to misconduct, as he turned out to be.

He had a colleague, several years younger, who was a constable. Some people call him “Barney”. That is understandable to anyone who knows him and is acquainted with children’s television, in particular “The Flintstones”. He is fair, of short stature, and has an open face and a simple personality. He struck me as a man who would be easily led. For reasons that will appear, I will call him B, rather than by his full name. Henwood is a more substantial type of person. B’s only employment before joining the police was as a part-time lifesaver with the Eurobodalla Shire Council.

Both men knew, and Henwood was mates with, Sydney Paul Cool. Everybody calls him Syd Cool. He is rising 50 years of age, having been born on 11 September 1941. He is presently in custody on drug charges and has a significant prior criminal history. He was sent to prison for 4.5 years in the mid 1960s, although he served substantially less. The offences he has committed include breaking and entering, stealing, and receiving, and more recently the supply of amphetamines.

For some years up until early 1990 Cool worked as a field representative or “chaser” for Re-Car Consolidated Industries (Wagga) Pty Ltd. That company is simply called “Re-Car” in this Report. In the end he became that company’s sales manager. He and others had the responsibility of ascertaining when heavy vehicle accidents had occurred, and securing the repair work for his company. That is done in various ways, principally through “spotters” who were spread around the country and provided an information and assistance service to Re-Car. The company has branches elsewhere, but probably the most important is at Wagga Wagga.

Its main competition in that town, and indeed in the heavy vehicle repair industry generally, is Royan’s Trucking and Trailer Repairs Pty Ltd, which is called “Royans” in this Report. That company also used spotters and chasers. One of its chasers was Raymond James Cool, a brother of Syd Cool. He is known to all and sundry as Bert Cool.

Competition between the two companies was and is intense. The Hume Highway runs through Albury, which is south of Wagga, and Yass, which is east and somewhat north of Wagga. Roads and Traffic Authority figures show that in the three years to the end of 1989 there were 177 heavy vehicle crashes on that section of the major transport route between Sydney and Melbourne. According to RTA methodology, that covers both trucks and buses. There were 237 heavy vehicle crashes on other roads in the 17 shires in the general area during the three year period. If the average repair job is worth $50,000, then in the average year the total repair work available in the area was nearly $7M.

Each of Henwood, B and the two Cool brothers was a significant witness before the Commission.

Henwood and Cool

Henwood did favours for Syd Cool, and received money from him. According to his own account, there was only one occasion when he acted as a spotter, for which he received $100. Cool says this happened far more often, and there is some evidence to support him. On other occasions Henwood helped salvage spilled loads, or guarded vehicles at crash sites, activities for which he received payment.

It is at least arguable that Henwood acted illegally in the first respect – see s.10 of the Tow-Truck Act 1967, and the discussion in Chapter 3. He did not obtain the consent of the Police Commissioner to do outside work or receive the monies that he did, and thus contravened Police Rules. He knew he was behaving in a wrongful manner, though doubtless he thought it was minor, as I suppose it was. But as was suggested by senior counsel assisting in his opening address, corruption breeds corruption. The relationship between Henwood and Cool had illicit overtones, and the position got worse.

Sale of Police Identity

Police officers must be able to identify themselves. For that purpose they are provided with a badge that can be produced and shown, and a photo-identity card. The two are generally carried in a wallet

Both Henwood and Cool say that the former sold to the latter his police identity papers. Henwood thus put Cool in the position that he could pass himself off as a police officer. This was very serious wrongdoing.

Henwood says he thought Cool was just interested as a collector, but on that basis I think the charge of $500 was surprisingly high. According to Cool, Henwood knew of his police history. Cool says he bought the policy identity papers in order that he could in fact masquerade as a police officer, and that he wanted to do so as to obtain a competitive edge in the drug dealing game. He says he never actually used the papers, but only his word is available as to that. Certainly he inserted a photograph of himself, and made up a false identity – he became Senior Constable K C Barrett. A reproduced photograph of the key part of the identity papers appears on the next page.

What happened is that in late November 1988 Henwood lost his identity wallet containing documents and a badge. He filed an official report shortly afterwards, which was in certain respects inaccurate, and proceeded to take steps to obtain a replacement set through official channels. At about Christmas time he found the lost item, when he was mowing his lawn. He mentioned to Cool that he had a spare copy, Cool made an offer to him, and the deal was done. B had a peripheral involvement, in that for a period Henwood borrowed B’s badge, but it does not appear that he was knowingly concerned in the sale of anything to Cool, and I accept he was ignorant as to that transaction.

The Jugiong Job

Syd Cool lived on a property near Jugiong. The next door property had a small house on it, which contained objects of value. In about late October 1989 Syd Cool and Henwood had a discussion, out of which developed the idea that Henwood might enter the premises and steal what was there. Each man sought to blame the other for instigating the idea. However that might be, shortly afterwards -probably the night of Sunday 5 November 1989 – Henwood and B went to the deserted house together after they had finished official police duties. This was probably between 10pm and midnight. The two men were wearing gloves. What follows is B‘s account; taken from a recorded interview conducted some 12 months later.

The house is green in colour and is a double garage converted to a small holiday house. We were in my car and we pulled up out the front We went to the front verandah and looked in the front window through the curtains with a torch. We saw the inside had crockery displayed on cabinets around the room. One window we couldn’t see through because it had a curtain in front of it. We then went to the front door and tested it to see if it was unlocked but it wasn’t. The door had a top part with glass, Gary broke the bottom left hand panel of glass and then wedged the door open with a bar that we had taken with us.

We then entered the room and walked around the three rooms, we then removed the items listed on the search warrant except for the Chinese War Dog ornament which I have never seen. We placed these in the boot of my vehicle and returned to Gary Henwood‘s place. We removed the goods from my car and placed them in Gary Henwood‘s house in the lounge room. Gary said he would take care of the stuff. I then went home to Wagga.

The list of items contained in the search warrant is substantial and worth quoting:

1 Dinner set Burleigh Willow pattern, 97 pieces; Silver candelabra, 3 arms, silver plated; 1 glass dome clock; 4 American pressed glass goblets; 1 facsimilie oil painting (fishing boats); 1 Chinese War Dog ornament, blue; 1 antique walnut trinket box, brass and ivory decoration; 1 large vegetable dish and cover, Burleigh Willow pattern; 1 Silver plated serving trowel and knife, Rod silverware; 1 Silver plated serving trowel, Rod silverware; 1 picture, gold frame, forest scene; 1 silver coffee pot; 1 heavy glass cheese dish; 1 sandwich tray, (Royal Doulton).

The two men checked at Jugiong police station a week or two after the offence, and ascertained that the incident had been reported. Shortly afterwards Henwood gave B and his wife – the two had just become married – the silver coffee pot and silver tray as a wedding present. It appears nothing much was done to turn the stolen items into cash. Henwood says he burnt a painting, but a good deal of what had been taken was recovered. Some was found at Henwood‘s house, and some at B‘s place.

Other Matters

Syd Cool made three other serious allegations against the two men now under consideration. One was that Henwood made available to him a police revolver so that he and an associate could hold up a service station. Next he said that on one or more occasions amphetamines were transported by Henwood and B in the boot of a police car, so that the chance of apprehension would be reduced from Cool’s viewpoint.

Finally he asserted that Henwood purloined from the Courthouse, and provided him with, blank search warrant forms.

All allegations were denied, no external support for any of them has been discovered despite assiduous effort, and I am not prepared to rely upon the unaided word of Syd Cool. He is a criminal who the evidence shows was inclined to bombast, and in any event might well have wanted to gild the lily so as to keep the Commission happy. Accordingly no finding is made as to those allegations.

One other offence which Henwood committed, in which Cool had no involvement, is mentioned in the next chapter.

CHAPTER 2 COURSE OF INVESTIGATION

The matter came to the Commission’s attention when Cool offered to provide information and assistance. Of course he did this for his own reasons: at the time he was desperate to obtain bail so he could get his affairs in order before going away to prison for a long time. As it happened his efforts in that respect failed.

The course the investigation took is now detailed.

Terms of Reference

Cool wrote to the Commission on 12 August 1990. He was interviewed by Commission investigators on 15 August I approved a formal investigation on 6 September 1990. The period originally covered was from 1 January 1988, but that was later taken back by a year. After some discussion during the first week of hearing, the terms of reference were amended slightly, and their form did not change thereafter.

TO INVESTIGATE the conduct of police officers and other public officials in:

– the provision and acceptance of benefits in and by the motor vehicle towing and repair industry for information relating to motor vehicle accidents:

–  any other improper or illegal activities in or related to the motor vehicle towing and repair industry.

in the period from 1 January 1987 to date, with a view to determining the matters referred to in s.13(2) of the Independent Commission Against Corruption Act 1988.

TO PREPARE a report in relation to the investigation.

TO COMMUNICATE any of the results of the investigation to such authorities, if any, as may be appropriate.

The account given by Syd Cool covered both corruption of public officials, and other criminality. Accordingly, contact was made with the Internal Police Security Branch, and from an early stage investigators from the Commission and that branch worked closely together. Later the Commission suggested establishment of a Joint Task Force, which was formally established at the beginning of January 1991. The Commission provided premises, support staff including analysts, and also most equipment including a specially developed small computer facility. The joint arrangements worked well.

Personnel worthy of special mention are Chief Investigator Mike Purchas of the ICAC, Detective Chief Inspector Hutchings of the NSW Police, Detective Inspector Hopkins, who has since become an ICAC Chief Investigator, Geoff Casson and Ron Szancer. The two latter are respectively a senior lawyer and a criminal analyst employed by the Commission.

At an early stage warrants were executed, most notably on the places of residence of Henwood and B, and the stolen property was found. Initially each gave an untruthful, exculpatory account, but within a day both had confessed. Each was then charged and brought before a court.

As a result of publicity following the court appearance, investigators were informed of a car which Henwood had dumped at a property at Jugiong. It was found to be registered in the name of a police sergeant. Henwood was interviewed, and admitted having agreed to get rid of the vehicle so that the owner could make a claim on his insurance company. Henwood drove the car from Sylvania to Jugiong. In late January 1989 the owner made a claim for the sum of $5000 which was paid out less an excess of $250. The wreck was sold recently for and the insurance company is $4,670 out of pocket. The sergeant has been charged with false pretences.

Henwood pleaded guilty to three charges. He was sent to prison for breaking, entering and stealing, and larceny as a servant (in relation to the police identity papers) for a period of ten months, and placed on a five year good behaviour bond in the sum of $1000 on a charge of being accessory before the fact to a false pretence. This happened on 7 January 1991. An appeal which he lodged was later abandoned, and he is presently in prison.

B has pleaded not guilty to a single charge of breaking, entering and stealing, which remains to be tried. The matter will not come before a jury until well into 1991. Accordingly I do not think it necessary, to ensure that B‘s right to a fair trial is not prejudiced, to defer making this report to Parliament: see s.18 of the ICAC Act.

Those who are generally cognisant with the matter will easily work out who B is, but people of that sort should not and would not serve on a jury in any event. At trial the onus of proof will be upon the Crown, and the standard will be proof beyond reasonable doubt. Before the Commission there is no particular onus upon anybody – the object is to search for and ascertain the truth, and the standard is proof on a balance of probabilities. Different evidentiary rules apply before the courts than before the Commission. Nothing said here is to be taken as a finding or opinion that B has been guilty of a criminal offence. In. view of the fact that a prosecution is under way I do not think that a statement under the ICAC Act is necessary, save to the extent that follows.

Henwood has been discharged from the Police Service. B‘s future as a police officer should come under consideration, whatever the result or the prosecution. The evidence is such as to warrant consideration of his dismissal. I so state my opinion, pursuant to s.74A(2) of the Act.

The Hearings

On 20 November a private hearing was conducted to take evidence from three witnesses, including Henwood and B. Shortly afterwards the investigation was announced and appropriately publicised, and public hearings were held in Wagga Wagga during the week commencing 10 December 1990, and in Sydney from 18 February 1991. The actual days of public hearing were as follows:

10, 11, 12, 13, 14 December 1990

18, 19, 20, 21, 25, 26, 27 February 1991

8 March 1991

A list of witnesses appears at Appendix 1.

Counsel assisting was Mr C Maxwell, QC. He did his job fully and fairly. Other lawyers granted leave to appear were:

Mr G Masterman, QC   for Royans

Mr M Inglis   for R J Cool and  J W Cusack

Mr C Heazlewood   for Re-Car, Padmore and  M J Prowse and Mr J Glynn  J W

Mr G Edwards and   for various police officers,

Mr P Wilson   and their wives

Mr J Heazlewood   for R W Kelly

On 18 February 1991 an application was made for all prospective witnesses to remain out of the hearing room while evidence was being given. On 20 February I rejected the application in its terms, but granted it on a more restricted basis. Thereafter some future witnesses were kept out some of the time. The reasons given for the course followed may be of importance in future matters, and appear at Appendix 2.

Investigation Confined

The evidence I heard was confined in both an industry and a geographic sense. In the former respect, it was the heavy vehicle towing and repair industry that proved to be of the greatest interest. For obvious reasons crashed cars have less potential value from a repairer’s viewpoint. As to area, the evidence related to the Riverina region, particularly the eastern part of it Crashes on the Hume Highway were very much of the greatest significance. The area in question can be more precisely defined as having Hay to the north west, Leeton to the north, Yass to the north east, Tumbarumba to the east and Holbrook and Jerilderie to the south. Wagga is not far from the centre of this which will be called in this Report the relevant area. Townships of significance, on the Hume Highway include Holbrook, Tarcutta and Gundagai.

The Commission received a deal of information concerning one other region, but after intensive assessment it was decided that the evidence was insufficiently cogent to warrant hearings being held in relation to it. So far as industry is concerned, there have been recurrent allegations over a long period that police have acted as spotters in relation to towing jobs in the Sydney metropolitan area, and from time to time action has been taken and condign punishment imposed. That is a matter which the Commission will look at later if necessary, that is to say if it appears that old practices are current.

I have decided to proceed with this Report now, and recommend to the Operations Review Committee – see s.59(1)(a) of the ICAC Act that the present investigation be discontinued upon publication of the Report. That does not involve any judgment on my part that practices of the sort disclosed are confined to the geographic area mentioned above. Because of what I know about methods used in the heavy vehicle towing and repair industry, and a relative lack of interest by the Police Service concerning spotter’s fees, it would be surprising if practices disclosed in the evidence were not replicated elsewhere. It seems reasonable to hope that publication of this Report will have a discouraging effect in other places.

CHAPTER 3 REPAIRERS, CHASERS AND SPOTTERS

This chapter deals with the way in which trucks involved in accidents in the relevant area were handled, the activities involved, and the people of the greatest interest. It is best to start by considering the legislative background.

The Statutory Scheme

For the great part of the period under investigation the legislation of principal relevance was the Tow-Truck Act 1967. It was to be repealed by the Tow Truck Industry Act 1987 – see s.76 of the latter, and the Government Gazette of 11 March 1988 – but the repeal date of 1 August 1988 was preceded by the Tow Truck Industry (Revocation of Proclamation) Act 1988, which was assented to on 6 July of that year, and made operational on assent. The 1987 Act is therefore irrelevant for all purposes.

One then comes to the Tow Truck Act 1989, part of which was made operational in April 1990 and the balance six months later. Section 37, which is dealt with shortly, is contained in Part 3 of the Act which became effective on 1 November 1990 as did s.84 which repealed the 1967 Act – see the Government Gazette of 26 October, 1990. Putting the matter simply, the 1967 Act and in particular s.10 of it applied until that date, since when the 1989 Act and in particular s.37 of it have applied.

Both Acts require that “towing authority” be obtained before any motor vehicle is towed on a public street. By s.10(1) of the 1967 Act an offence is committed by any person who:

a. for the purpose of obtaining a towing authority, or for the purpose of enabling any other person to obtain a towing authority, gives or receives or agrees or offers to give or receive any valuable thing in consideration of the furnishing of information or advice as to the occurrence of an accident on a public street or the presence of a damaged motor vehicle thereon;

b. gives, or agrees or offers to give, any valuable thing in consideration of the obtaining, for himself or any other person, of the work of repairing a damaged motor vehicle; or,

c. receives, or agrees or offers to receive, any valuable thing in consideration of the obtaining, for any other person, of the work of repairing a damaged motor vehicle.

By s.37 of the 1989 Act:

1. A person must not give, or offer to give, any valuable thing in consideration of the obtaining, personally or for any other person, of the work of repairing a motor vehicle damaged in an accident or otherwise requiring towing.

2. A person must not demand, receive, or offer to receive, any valuable thing in consideration of the obtaining, for any other person, of the work of repairing a motor vehicle damaged in an accident or otherwise requiring towing.

In each case a maximum penalty of 100 penalty units is laid, down.

Section 37 relates only to payment for obtaining work, that is to say it has to do with the physical work and the antecedent contract. It prohibits what are called “drop fees.” Section 10(1)(b) and (c) were similar, but s.10(1)(a) was quite different. It related to information or advice of a given sort. It prohibited both payment and receipt of what are called “spotter’s fees.”

The evidence showed that payment of spotter’s fees was a commonplace practice. The law was flouted. No attempt seems to have been made to enforce it. That being so, it was better dispensed with, as happened late in 1990. During the great part of the period under investigation the position was very unsatisfactory. It must be stressed that enforcement authorities should either act as such, or push to have the law changed. To ignore a law which remains on the statute book contributes to a situation in which the law generally is treated as unworthy of respect.

Those who are interested in the somewhat sad history of police inactivity regarding the enforcement of the laws concerning the payment of spotter’s fees and drop fees and police corruption in the tow truck industry can trace it, at least from one viewpoint, in a report on the subject by the then Ombudsman New South Wales, Mr G.G. Masterman Q.C. The report is dated 16 September 1982. Reference can also be made to the Annual Reports of the Ombudsman for the years 1983, 1984, 1986 and 1987.

Chasers

Both Royans and Re-Car employed field representatives, who are commonly called chasers. That was a description viewed with disfavour by John Padmore, the manager of Re-Car. He was asked if the word troubled him:

Definitely, I hate it. I don’t employ chasers.

Commissioner.. Did you once? — Never.

Given the fact you hate the word presumably you’ve got a reason for hating the word? — Because I consider my business a bit more up-market than that terminology, sir.

I understand that. But you have employed people who I think have said to us that they worked for your company as field representatives? — I have.

I think at least one of them has described himself as a chaser, a few years ago admittedly? — He may have done that but that’s not my term.

Have the company’s practices changed over the last 5 years say? — No, I wouldn’t think it has changed at all – referring to what, the way we – – –

Referring to the way you get your work? — Definitely, yes.

The nature of the change, please? — I no longer employ field representatives solely in that capacity, purely for economic reasons.

At a late stage evidence was given by Ronald Royan, the managing director of Royans, at the request of his counsel. Part of what he said follows:

I feel that the stigma that is placed on their name at the moment through allegations is affecting the morale of our other employees, including myself, and I felt that possibly it might be worth my while coming in and explaining the business to you people at the Commission. And, also, I felt that I don’t really feel that the field representative’s role has been explained correctly. Having been in business, what, 40 years, over 40 years, obviously we have a lot of clientele that we don’t need to chase for business. All businesses have representatives going out. Insurance companies have brokers, they give 20 per cent of their premium income to these broker to get work from them We have clients who need assistance.

They will rang at all odd hours of the night and day, and weather – seasonal conditions change. We could possibly give an example, if you like, of one of our customers who doesn’t have to be Spotted, as they call it, could ring us, say, 2 o’clock in the morning – mainly a night in winter at – pardon me, gee – he might live at Cots Harbour, and he could have a refrigeration unit full of prawns, cold meat or whatever; and it rolls over. He expects us to give him 24-hour service at all times. He will ring and he will ask us to look after the load.

We have to have somebody on hand who has the knowledge and the capacity to go out and handle that load, arrange another refrigeration unit, say, be able to attain labourers to assist in unloading that truck and preserving it, as well as helping himself He has to be able to assist and co-operate with the police and the Road Traffic Authority, who I really believe would be in a lot of trouble if he didn’t exist. There’s a lot of work involved in clearing the roads. I believe the insurance companies would suffer badly, which would flow onto the public through premium incomes. The way a truck is salvaged – and you ‘re looking at very heavy equipment at night time, and peculiar positions. There’s a lot involved it, saving that truck so that there’s little damage as possible.

Having spoken of a particular incident, he went on:

They’re not only to go out and con police and corrupt policemen – con spotters and corrupt policemen, as I think the papers are alluding to, you know, that offends us

Mr Masterman: Is that any part of their job at all?-Not as far as I’m concerned. We don’t employ anybody to act outside the law. They are employed to act honestly and with integrity and to uphold an image which I believe we’ve attained over many years.

The field representatives that gave evidence before me called themselves chasers. None of them had any doubt that they were involved in a very competitive business.

I accept that they did more than simply obtain repair work for the companies, that the range of their duties was not narrow, and that because of standing business arrangements it did not matter which chaser moved fastest in relation to a fair number of accidents. But often that did matter, and chasers had to be persuasive both on the telephone and in person, they had to be prepared to work around the clock when necessary, they had to be good drivers and in fast vehicles, and they had to have a network of people who could help them, particularly with information. It is also clear that successful chasers took considerable pride in their work, and each job secured for the employer was a matter of pleasure and prestige.

There is no evidence that either Padmore or Royan knew of any malpractices, save that each knew that fees were paid to spotters, and during the whole of the relevant period, except since 1 November 1990, that was contrary to law.

It should be clearly stated that although payment of spotters’ fees is not now illegal, it does not follow that everybody can act as a spotter without restraint. Most obviously police officers should not do so, whether or not they receive payment. The rules governing police, which have the force of law, provide that officers must keep official information confidential, and restrict the extent of their outside paid activities. Quite apart from the rules, it is obviously important that those paid to handle information and provide security on behalf of the community generally should not do so by way of private trade with a select few.

Spotters

Many trucks have radios in them. Drivers talk between themselves, to pass the time and to alleviate tedium. They also exchange information, as for example about police activity. Naturally if there is an accident, other drivers will talk about it Drivers may also converse with people they know in places they pass by service stations and houses for example – who have the appropriate equipment. They use what are called CB radios, which may be of very high frequency or ultra high frequency, which determines the available range.

Police also use radios extensively. Anybody can buy a scanner which may be turned to the police radio frequency, and ascertain the messages that are being passed over it.

Each of the companies had a network of spotters, recruited and cultivated by chasers and in effect working to them. Some of the spotters were part time field representatives, who would when necessary go out to accident scenes. Others simply received and passed on information. The evidence shows that at any time each company had dozens of these people. Most of them were supplied with radio equipment, at the expense of the company. Most spotters left their equipment turned on for very long hours, and some did so around the clock. If they heard anything of potential interest it would be passed on to the relevant company or to a chaser from that company.

Spotters were paid varying amounts. As a general rule they would receive about $250 if their report of an accident was the first received and the company got the repair job. The fee could get down to $80 for the first report of a truck accident which did not result in work for the company. Sometimes payments were made by way of bonus, or to keep the spotters happy. But there was strong emphasis upon payment by results, and what really mattered was to be first with information.

Information of value was not just the fact that a truck accident had occurred at a given place, but also who owned the truck. That mattered because sometimes a standing business arrangement would mean one or other company would automatically get the job, and hence there was no point blowing a gasket getting to the accident site quickly. More importantly, it mattered because a chaser could sometimes get the job by making appropriate telephone calls, while the opposition were racing to the scene.

Chasers generally paid spotters personally, in cash. What follows is taken from the closing submissions lodged on behalf of Royans:

There is good business sense in the field representatives who develop and sustain the spotter system personally making payments to their spotters. This provides an opportunity for personal contact and encouragement. Further, it is submitted that there is nothing wrong or improper in a truck repair company enabling its field representatives to make payments to its spotters either generally or on occasions in cash. There are many situations in the community where payments are made in cash (for example to casual mowers of lawn or house cleaners).

There was some debate and conflicting evidence about how useful police officers would be as spotters. I have no doubt that if one of the companies could recruit a police officer as such, significant benefits would be likely to flow. People who see a traffic accident tend to call the local police right away, with only the ambulance service being given priority on some occasions when personal injuries were involved. Notification to the police may be by telephone, or by attending at the local station. That is not to say that typically the police will hear before the word gets out on the CB radio network but sometimes that will happen.

It also has to be remembered that police officers performing traffic duties are themselves on the road, and one of their responsibilities is to look out for accidents. At least sometimes they will be the first on the scene. Further, police officers have direct access to the RTA database which discloses the registered ownership of each licensed motor vehicle, which means police officers could provide information of great value if willing to do so. Finally, to have a friendly police officer at an accident scene can never harm and may well help somebody hustling for work.

It was accepted by everybody involved in the hearing that it would be wrong for police to accept payment for acting as spotters, and wrong for company representatives to pay them as such. That was conceded by those who defended the system of having spotters. Indeed they said it was inevitable, despite legislative proscription until recently.

Several witnesses from Royans gave evidence. On the management side there were two brothers, Clary Andrews and Bill Andrews, each of whom was for a time in charge of the chasers working for Royans out of Wagga. The former held that position from late 1984 to the middle of 1990, and his younger brother Bill Andrews has held it since. Another was John Cusack, now the sales manager for Royans, who had over the years worked for each of that company and Re-Car as a chaser. Finally there was Bert Cool, who had done likewise.

The only witness from Re-Car apart from Padmore was Maureen Prowse, who has been the bookkeeper since the business began in 1984. However evidence was called from four former Re-Car chasers – Syd Cool, Bert Cool, Cusack and a man named Ray Kelly.

Family Matters

There are many people with the surname Diesel in the Riverina district. One of these, Susan Kay Diesel, married a police constable named David Zimmer. At the time of the hearing he had been stationed at The Rock for nearly six years. It is a one officer post, and of course Mrs Zimmer had to help out considerably, especially when he was away from the station. She always used her married name, rather than keeping her maiden name, as some are wont to do. Her sister Pamela is married to Bert Cool. The two women are very close, the two men much less

In addition to Ross, Henwood and B, who have already been mentioned, a number of police officers gave evidence. The more important of them were:

_ Lindsay Becroft, a sergeant stationed at Hay, who was previously in charge of the Tarcutta Police Station. His wife is Judith Becroft. Each of them is said to be friendly with Bert Cool.

_ Peter Schonberg, a senior constable stationed at Tarcutta – he took over from Becroft in December 1989. His wife is Frances Schonberg.

_ Neville Unicomb, a senior constable from the Tumut police station.

_ John Campbell, a senior constable from Yass.