Sydney businessman and pest control company owner Ted Lakis, with his wife Cassi. One of the companies at the centre of the allegations, Arcadia Pacific Group, has won government cleaning tenders not only at Sydney Harbour sites, but at the Art Gallery and State Library of NSW, Sydney Olympic Park and Parramatta Stadium. The firm's website states that "Arcadia Pacific Group has been trusted by the Authority to ensure that Darling Harbour remains one of the Jewels in the city's crown." A well-placed source said other service companies and more public servants from different agencies are also suspected to be involved in the alleged bribery racket. Ms Vernon's confessions about being bought off came to light during a commercial dispute, being heard in the Supreme Court, involving former business partners Ted Lakis and Michael Lardis over allegations of mismanagement in their company Amazon Pest Control, which is now in liquidation.

Ms Vernon has been stood down from the Sydney Harbour Foreshore Authority. Credit:Brendon Thorne The court heard that Ms Vernon was paid up to $300,000 in bribes by Mr Lakis. Transcripts of the case seen by Fairfax Media have Ms Vernon's evidence heavily redacted, but other evidence reflects her confession that "a sum of $200,000 was, over a period of years, paid by Arcadia [Pacific]". Acting Supreme Court Justice Peter Young noted elsewhere in the transcript that Ms Vernon had been paid off by "very experienced bribers". They had paid Ms Vernon "over a quarter of a million [dollars], so they knew what they were doing", the judge said.

"She's given ... unshakable evidence about receiving cash amounts from Mr Lakis in the amount of $300,000 in three separate occasions," Mr Lardis' barrister Elpo Chrysostomou told the court. He also told the court that Ms Vernon was a witness of truth and at "not inconsiderable risk to herself ... she's already indicated to this court that certain consequences will follow." Mr Chrysostomou also told the court Ms Vernon's allegations has "exposed the company to a not inconsiderable risk of … criminal prosecution". During the hearing, Mr Lakis denied Ms Vernon's claim that he had "given her cash amounts on three separate occasions". Mr Lakis, who could not be reached for comment, married into the Tassis family, some members of which own Arcadia Pacific, a major state government contractor which, in addition to Mr Lakis' company Amazon Pest Control, was also identified in court as an alleged bribe-paying company. It is not suggested any of the Tassis family were party to any dealings with Ms Vernon. Ms Vernon did not return Fairfax Media's calls.

Senior SHFA sources told Fairfax Media "it would be a huge scandal" if Ms Vernon had been allowed to keep her job after such admissions. However, they said none of her managers at SHFA appeared to have been informed of her confession. The Independent Commission Against Corruption declined to comment on whether it was investigating the matter. Ms Vernon, who colleagues described as a "rough diamond", had previously been investigated and cleared by SHFA after allegations were made against her during the course of a marital dispute. The involvement of the Sydney Harbour Foreshore Authority raises major questions for its management, as well as the state government, given the agency was embroiled in a separate corruption scandal in 2011. Mr Lakis' business dealings with a Sydney gym, Titan Fitness in Coogee, was also examined in court. Business records reveal that a firm owned by Mr Lakis was, in 2010, one of six shareholders in the gym, which Mr Lakis also previously directed. Another shareholder was a firm owned by notorious drug trafficker and crime figure Hakan Ayik. There is no suggestion that Mr Lakis knew of My Ayik's illegal activity.

Acting Justice Young said that the commercial dispute involving Mr Lakis required the court to assess the evidence of Ms Vernon and the question of whether "Mr Lakis [is] liable to account … for bribes paid to Ms Vernon". The judgment in the matter is expected to be handed down in coming weeks. Got a corrupt tip? Contact us anonymously and securely at this link