GSS Group was placed into voluntary liquidation in September, three months after a Nine masthead reported allegations the firm exploited vulnerable workers and raised concerns within the AFL's integrity unit. Liquidator Peter Gountzos from SV Partners confirmed in a September 23 report that he was aware the company "may have historically underpaid some employees" and is reviewing employment records to calculate outstanding priority entitlements including superannuation.
Financial documents show GSS Group owed more than $1.7 million to the Australian Taxation Office and $94,000 to the state revenue office at the time of its collapse. The liquidator is also examining nearly $3 million in loans made by the company before its collapse, some to related entities. A deal in August to transfer assets and staff to a new company called Millenium Services Group is also under investigation.
Marvel Stadium confirmed in June it would overhaul its security arrangements, planning to move management of the stadium's security in-house while using contractors to provide extra guards for matches and major events.
The reporting that preceded the collapse revealed GSS Group had repeatedly failed to pay award rates for weekend shifts and used subcontractors who routinely paid workers in cash. WhatsApp messages showed at least two subcontractors continued making cash payments. The Victorian Labour Hire Authority is investigating both subcontracting firms over claims some guards received as little as $30 cash an hour.
The collapse of GSS Group follows that of MA Services, a security and cleaning provider for several AFL clubs that was due to be a key sponsor of the Melbourne Demons until it was revealed to be engaged in alleged widespread tax fraud and underpayment of migrant workers. The back-to-back collapses underscore systemic integrity issues within the private security sector and the risks for organisations that rely on private contractors for essential services.