A government vendor with contracts in Tacoma appears to be on the verge of bankruptcy, according to a report it released to its home country regulator earlier this week.
The contractor’s slide is raising questions with Tacoma officials about whether to continue dealings with the company, or move on, with speculation that its financial condition and ability to continue operating long-term are unlikely to improve.
Australia’s Redflex Traffic Systems, a supplier of traffic cameras to Tacoma, lost nearly $12 million over the last six months according to a report it filed with the Australian Securities Exchange, and which was obtained by opponents of traffic cameras.
Apparently, Redflex benefited from the recently-passed GOP tax reform package, but it was not enough to stop the bleeding.
Redflex originally shot to public attention in the US after being implicated in a Chicago criminal bribery scandal. A former executive of the company claimed in 2014 it had “bestowed gifts and bribes” including in Washington State.
According to traffic camera opponents, Redflex has been relying on fresh investments from shareholders to stay afloat. However, the company says that due to the termination of a contract in New York and less money flowing to the company via its contracts in Mexico, it is still losing money. Its legal situation in Chicago has apparently been a driver of financial misfortunes before this most recent period.
Reportedly, Tacoma officials are set to review their contracting arrangements with Redflex in the coming days.
[featured image: trekandshoot]