V/Line's chief executive James Pinder has been suspended, after the announcement of an investigation by Victoria's Independent Broad-based Anti-corruption Commission (IBAC).
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Victorian Public Transport minister Ben Carroll said his department had advised him of an investigation into V/Line chief executive James Pinder," Mr Carroll said.
"On the basis of that advice, I directed the V/Line Board to immediately suspend Mr Pinder, while IBAC carries out its investigation."
IBAC has also confirmed it is investigating matters related to the Department of Transport.
"For legal and operational reasons, we are not able to provide further information at this time,' and IBAC spokesman said.
V/Line has been involved in the roll out of the troubled $440million Murray Basin Rail Project.
The project involves converting a number of rail lines, in the north-west, from broad, to standard gauge, to allow for higher axle loads.
"Nick Foa, currently the head of transport services at the Department of Transport, will act as V-Line CEO while a longer term arrangement is put in place," Mr Caroll said.
"This is an ongoing investigation, it would be inappropriate to comment further."
Premier Daniel Andrews made no comment on the inquiry, at his daily briefing.
He said it wasn't appropriate for the government to be briefed, on IBAC investigations.
"I make no judgments about it," he said.
"All I can do is refer you to whatever language Minister Carroll has used.
"He will have been as frank as he can be without interfering with the work that IBAC has done."
V/Line services will continue to operate as scheduled.
The inquiry comes five months after the Victorian Auditor General issued a scathing report on the troubled $440million Murray Basin Rail Project.
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The MBRP was announced in 2014 as a once-in-a-generation upgrade for much of the state's regional rail freight network and was expected to be completed by 2018.
The report, tabled to parliament in mid-March, found the scheme had not met "scope, time, cost or quality outcomes" despite its $440 million budget.
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Andrew Miller
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
