Sydney Water has filed a summons in the NSW Supreme Court against former broker Heath Lambert Group Australasia – since acquired by Marsh – seeking damages for alleged wrongfully earned commissions and associated losses estimated at $7.8 million plus interest.

Earlier this year Sydney Water said internal investigations had identified issues associated with its insurance broking contract that warranted further investigation. In June the NSW Parliament was told that Sydney Water Risk Manager (and former ARIMA President) Bruce Ferguson was on leave while investigations continued into a “$7 million insurance fraud”.

The organisation believes that commissions have been wrongfully earned on insurance placed on its behalf over the past three years.

An investigation is continuing under the supervision of the board’s audit and risk committee.

Sydney Water has had meetings with the Independent Commission Against Corruption and NSW Police, dismissed an employee after due process, provided information to the Australian Securities and Investments Commission and engaged legal and accounting consultants to provide expert advice in the matter.

The NSW Police fraud squad is investigating.