Second company suspended from Torrens-to-Darlington road project - ABC News & Headlines – Australian Broadcasting Corporation

SA Treasurer Tom Koutsantonis says the T2D Alliance has the power to terminate contracts. (ABC News: Che Chorley)

Cleaning services LYLA has become the second company to have its contract suspended from the $15.4 billion Torrens to Darlington project.

The SA government earlier confirmed the Torrens to Darlington Alliance, tasked with delivering the road corridor upgrade, had cancelled its contract with Career Boss on the grounds the company had not been "proactively disclosing" its involvement in a civil legal suit.

State parliament's budget and finance committee has summoned the alliance to answer questions over its due diligence processes. 

A second company has been suspended from the Torrens to Darlington project, because of what the government says is a common shareholding with a labour hire firm that had its contract terminated amid a civil suit surrounding alleged bikie threats.

The SA government said small cleaning subcontractor LYLA was not the subject of any allegations of criminal wrongdoing but had been "suspended from all work" on the $15.4 billion road corridor project.

It said that step had been taken purely out of an "abundance of caution because of the common shareholding" with Career Boss, which has since had its contract terminated after it was suspended last month.

"Whether you have any link whatsoever to Career Boss, the message from the government is very clear: there is no place for you on the T2D, there is a zero-tolerance approach," Transport Minister Joe Szakacs said.

On its website, LYLA Services lists an address at a Salisbury commercial building which is also home to Career Boss.

The building has exterior signage for Career Boss, but LYLA Services is not publicly displayed. The ABC has sought a response from LYLA Services.

The government said there was "no suggestion of wrongdoing by LYLA, its shareholders, directors, or owners".

"This common shareholding of this company LYLA shows that we won't tolerate companies that have any association with anything that might be considered inappropriate for the North-South corridor," Treasurer Tom Koutsantonis said.

"Sometimes, people will think this is unfair. We don't care.

"There will be new tenders that go out and new companies will tender. There will always be an ongoing assessment of every single company that is working on this."

Joe Szakacs says the government is taking "a zero-tolerance approach". (ABC News: Che Chorley)

The government reiterated that SA Police last week had found "no evidence of organised crime on any public infrastructure project", including the T2D.

Late last month, the SA premier wrote to SA's Independent Commission Against Corruption (ICAC) requesting an evaluation of the Torrens to Darlington project.

ICAC commissioner Emma Townsend later confirmed she was "independently of the view" it was in the public interest to evaluate the Department for Infrastructure and Transport's policies.

Opposition leader Ashton Hurn said today's developments further demonstrated the need for a "forensic audit of every single contract".

SA Opposition Leader Ashton Hurn has repeated a call for a forensic audit of contracts. (ABC News: Che Chorley)

"Since day one, the government has not got its story straight on who knew what when," she said.

"[It's] this type of absolute chaos that allowed billions of dollars in Victoria to flow to the very wrong people. We don't want to see that happen in South Australia."

Mr Koutsantonis said the T2D Alliance, a consortium of companies selected to deliver the major infrastructure works, had the power to terminate contracts on the project.

Earlier today, Premier Peter Malinauskas said Career Boss's contract on the T2D project has been terminated over its involvement in a civil suit surrounding alleged bikie threats.

A labour hire company has had its previously suspended contract on the Torrens to Darlington project terminated. (Supplied: SA government)

Career Boss Australia, which had an agreement to supply workers to the South Road upgrade, had its contract suspended last month after it was revealed to be the subject of a civil dispute in the Supreme Court.

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".

Late on Monday, the state government confirmed Career Boss's contract has been terminated by the T2D Alliance.

"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.

"Based on its legal advice, and as previously foreshadowed, the Alliance has terminated the contract."

On Tuesday morning, Mr Malinauskas said the dismissal was made on grounds that Career Boss have not been "proactively disclosing" its involvement in a 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.

Mr Koutsantonis said any contractors who had not declared changes to its management structures would also be terminated.

He said 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," Mr Koutsantonis 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 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".

Ben Hood says the parliamentary budget and finance committee will press the T2D Alliance on its due diligence processes. (ABC News)

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 on the claims to the South Road project team, which investigated the claims 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".

Today, Mr Hood called on the government to sack Mr Szakacs and Ms Rolls.

"Joe's an exceptional minister with a bright future in this government," Mr Koutsantonis said today, in defence of Mr Szakacs.

"One lapse is, quite frankly, now being blown up into something that has almost shown no consequences on the project."

Mr Szakacs said that "in hindsight, [with] my time again, I would have told the premier" earlier.

The premier and treasurer have both supported the decision to call the Alliance before the committee.

The civil matter lodged by Mr Cammarano will return to court on November 16.