The South Australian government has confirmed Career Boss Australia, the labour hire company at the centre of allegations involving threats, has had its contract for the $15.4 billion Torrens-to-Darlington project terminated.
The T2D Alliance, the consortium selected to deliver the project, wrote to Career Boss on October 18 to advise of the indefinite suspension of its labour hire agreement, an SA government spokesperson said. "Based on its legal advice, and as previously foreshadowed, the Alliance has terminated the contract," the spokesperson said.
The contract was suspended last month after it emerged the company was the subject of a civil dispute in the Supreme Court. Businessman Robert Cammarano's claim alleges Jamie Brown attempted to "coerce the transfer" of shares in the company, without Mr Cammarano's authority, by making "express threats of physical harm".
Premier Peter Malinauskas said on Tuesday that the dismissal was based on Career Boss not proactively disclosing its involvement in the civil legal suit. "Point being that even though it's a civil dispute that's enough to give us grounds to be able to terminate them," he told ABC News Breakfast.
Treasurer Tom Koutsantonis said any contractor that had not declared changes to its management structures would also be terminated, and that the Department for Infrastructure and Transport would conduct integrity checks on contracts. "If we find any sudden changes in directorships, sudden changes in shareholdings, if there is controversy around the country, we will terminate for convenience," he told 891 ABC Adelaide.
On Monday, parliament's budget and finance committee passed a motion compelling the T2D Alliance, led by construction company John Holland, to appear before it on November 16. Opposition treasury spokesperson Ben Hood, who chairs the committee, said the Alliance would be asked "what they knew and when, and when did the government alert them to this serious issue".
A representative of Mr Cammarano notified Transport Minister Joe Szakacs's chief of staff and Child Protection Minister Alice Rolls about the allegations at a meeting on September 11. Mr Szakacs's office passed the claims to the South Road project team, which investigated and found "no red flags" in the shareholdings. Police Minister Michael Brown last week told a press conference that all matters discussed in Ms Rolls's office were "already in the hands of police".
Hood has called on the government to sack Mr Szakacs and Ms Rolls. The premier and treasurer have both supported the decision to call the Alliance before the committee. The civil matter will return to court on November 16.
Analysis
Why This Matters
- The Torrens-to-Darlington project is a $15.4 billion upgrade of Adelaide's South Road, and the termination removes a labour supplier from one of the state's major infrastructure contracts.
- The government is signalling tighter integrity requirements for contractors, with the treasurer warning that undisclosed changes to directorships or shareholdings could lead to termination.
- The dispute has become a political issue, with the opposition pressing the T2D Alliance on its due diligence and calling for two ministers to be sacked.
Background
Labor hire companies supply workers to major infrastructure projects such as the Torrens-to-Darlington upgrade. Career Boss Australia had an agreement to supply workers to the South Road project under the T2D Alliance, a consortium led by John Holland. Its contract was suspended in October after it was revealed to be the subject of a civil dispute in the Supreme Court, and the alliance has now terminated the agreement.
Key Perspectives
- SA government: says Career Boss did not proactively disclose its involvement in a civil legal suit, which gave grounds to terminate; the treasurer warns other contractors will be terminated if integrity checks find sudden undisclosed changes to directorships or shareholdings.
- Opposition treasury spokesperson Ben Hood: says the parliamentary committee will press the T2D Alliance on what it knew and when the government alerted it, and has called for the sacking of ministers Joe Szakacs and Alice Rolls.
- Police Minister Michael Brown: says all matters discussed in Ms Rolls's office were "already in the hands of police".
What to Watch
- The T2D Alliance's appearance before parliament's budget and finance committee on November 16, where it will be asked about its due diligence processes.
- The return of Robert Cammarano's civil matter to court on November 16.
- Whether integrity checks by the Department for Infrastructure and Transport uncover other contractors with undisclosed changes to directorships or shareholdings, triggering further terminations.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedThe South Australian government confirmed Career Boss Australia's contract for the Torrens-to-Darlington project was terminated.Just In: “The state government confirmed Career Boss's contract has been terminated by the T2D Alliance”
- SupportedThe project is worth $15.4 billion.Just In: “had its contract for the $15.4 billion Torrens-to-Darlington project terminated”
- SupportedPremier Peter Malinauskas said Career Boss's dismissal was based on its failure to proactively disclose its involvement in a civil legal suit.Just In: “SA Premier Peter Malinauskas said the dismissal was made on grounds that Career Boss have not "proactively disclosing" its involvement in a civil legal suit.”
- SupportedMalinauskas said, “Point being that even though it's a civil dispute that's enough to give us grounds to be able to terminate them.”Just In: “"Point being that even though it's a civil dispute that's enough to give us grounds to be able to terminate them," he told ABC News Breakfast.”
- SupportedThe T2D Alliance wrote to Career Boss on October 18 to advise that its labour hire agreement was indefinitely suspended.Just In: “The T2D Alliance wrote to Career Boss on October 18 to advise of the indefinite suspension of its labour hire agreement, an SA government spokesperson said.”
- SupportedAn SA government spokesperson said the Alliance terminated the contract based on its legal advice and as previously foreshadowed.Just In: “"Based on its legal advice, and as previously foreshadowed, the Alliance has terminated the contract."”
- SupportedCammarano's civil claim alleged that Jamie Brown tried to coerce a share transfer without Cammarano's authority by making express threats of physical harm.Just In: “The civil claim, lodged by businessman Robert Cammarano, alleged that motorcycle gang member Jamie Brown attempted to "coerce the transfer" of shares in the company, without Mr Cammarano's authority, by making "express threats of physical harm".”
- SupportedKoutsantonis said, “If we find any sudden changes in directorships, sudden changes in shareholdings, if there is controversy around the country, we will terminate for convenience.”Just In: “"If we find any sudden changes in directorships, sudden changes in shareholdings, if there is controversy around the country, we will terminate for convenience," Mr Koutsantonis told 891 ABC Adelaide.”
- SupportedOn Monday, parliament's budget and finance committee passed a motion compelling the T2D Alliance to appear before it on November 16.Just In: “On Monday, parliament's budget and finance committee passed a motion compelling the T2D Alliance, led by construction company John Holland, to appear before it on November 16.”
- SupportedBen Hood said the Alliance would be asked, “what they knew and when, and when did the government alert them to this serious issue”.Just In: “Opposition treasury spokesperson Ben Hood, who chairs the cross-party budget and finance committee, said on Monday the Alliance would be asked "what they knew and when, and when did the government alert them to this serious issue".”
- SupportedA representative of Cammarano notified the chief of staff to Transport Minister Joe Szakacs and Child Protection Minister Alice Rolls about the allegations at a meeting on September 11.Just In: “A representative of Mr Cammarano notified Transport Minister Joe Szakacs's chief of staff and Child Protection Minister Alice Rolls about the allegations at a meeting on September 11.”
- SupportedThe South Road project team investigated the claims passed on by Szakacs's office and found no red flags in the shareholdings.Just In: “Mr Szakacs's office passed on the claims to the South Road project team, which investigated the claims and found "no red flags" in the shareholdings.”