Police issue warrants for Fremantle Ports workers Giacomo ‘Jack’ Merolla and wife Daniela as their adult children Paolo and Tiziana Merolla front court over role in alleged corruption

Updated: Police have issued arrest warrants for a Fremantle Port employee and his wife who are overseas as charges are laid against their two adult children over a $1 million theft and fraud racket. Financial Crimes Squad detectives have issued arrest warrants for Fremantle Ports employee Giacomo “Jack” Merolla and his wife Daniela, both aged 54, as part of a major and ongoing investigation into alleged corruption practices at Fremantle Ports dating back to 2014. The Merollas’ two children — Paolo Vincenzo Merolla, 23, and Tiziana Merolla, 28 — both fronted Perth Magistrate’s Court court today facing nine counts of property laundering. No detail of the allegations were heard during the brief mention and their bail was continued until their next appearance on August 11. They have not yet entered pleas to their respective charges. Police will allege an employee of Fremantle Ports created several “shelf companies” both within Australia and overseas and used those companies to fraudulently manipulate the procurement of goods and services with local businesses by directing money for the employee’s own benefit. Police say the alleged corrupt business activity involves contracts estimated to be worth several millions of dollars. “To date more than $1 million has been identified as being transferred to bank accounts controlled by the shelf companies,” police said in a statement. “It is believed Mr and Mrs Merolla left Australia earlier this year... inquiries continue into the full extent of the alleged offending.” As part of the investigation detectives from the Financial Crimes Squad have executed several search warrants on homes and a storage facility, seizing more than $70,000 in the process. At a press conference on Tuesday police and the Fremantle Port Authority released further intricate details of the alleged offences. It’s been revealed Giacomo Merolla held a management role at the port in which he was responsible for navigational aids and lighthouses at the port. Police will allege the shelf companies set up by Mr Merolla allowed him to invoice and place orders through local companies. “He set up these companies offshore and in Australia, he’s then manipulated the system through local suppliers for equipment and had them direct the business to his company offshore,” Detective Senior Sergeant Ken Foster said. “This one (case) here is quite sophisticated the way he’s gone about, is what we will allege.” Detective senior sergeant Foster said the Merollas flew direct to South Africa in about March. He confirmed the arrest warrant for the couple had a multitude of charges attached to it. He said Mr Merolla was facing 23 counts of corruption and 34 counts of property laundering. Daniela Merolla is facing 24 counts of property laundering. “The activities that are referred to here are a betrayal to all of us...and we are appalled they have occurred,” Fremantle Ports Board Chair Ross Love said. “This is not the way we do business. “It is incumbent on us...we make sure this will never happen again.” Ports Minister Alannah MacTiernan said the Fremantle Ports Authority had overhauled their procurement processes. “Fremantle Ports have now entrenched stronger processes,” she said. “All Port Authorities have reviewed their processes to provide stronger protection against corrupt behaviour.” According to Ms Merolla’s Facebook page she used to work as a beauty therapist. “I have amazing parents that support me no matter what, and the best circle of friends ever,” she states. “My dream is to succeed in my career, and one day travel the world.” The investigation was launched after Fremantle Ports reported concerns to WA Police regarding the activity of one of their employees.