Embattled Construction Industry Training Board in new controversy over at least $1.3m in unlawful fees
$1.3 million in “unnecessary levies” was paid to an embattled State Government construction board by mistake – now it may have to repay it all.
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An embattled State Government board faces having to repay at least $1.3m in levies it mistakenly received from dozens of construction projects.
In a fresh blow for the taxpayer-funded Construction Industry Training Board, 63 South Australian projects built on federal property over the past six years are now in question.
Under state law, homeowners or builders pay a special industry training fund levy on building contracts above $40,000. However, any project built on Commonwealth land is exempt.
In response to questions, officials disclosed that a secret inquiry had identified 27 sites across the state which had incurred more than $1.3m in “unnecessary levies”.
A further 36 projects, with more than $180,000 in fees, are under investigation.
But sources said a newly appointed board had discussed up to a possible 100 wrongful payments totalling more than $2.3m. Sites included defence projects near Port Adelaide.
Officials are now negotiating with affected parties about either refunds or the board keeping money as a “gesture of goodwill”.
The levy, along with government funding, helps attract, train, support and retain building or construction apprentices.
Innovation and Skills Minister David Pisoni has ordered a formal briefing, months after instigating a spending audit.
Opposition spokeswoman Clare Scriven said Mr Pisoni needed to take responsibility for the issue.
“If an error has been identified, and the money is being repaid, that is a positive first step,” she said.
“Steps need to be taken to ensure the error cannot be repeated.”
The 11-member board, comprising union, vocation and education officials as well as industry leaders, has sought government legal advice on whether any statute of limitations prevent some fees being repaid.
A board spokesman said: “It must be stressed that the levies in question were not collected by the CITB.
“The levies were paid by entities who had misunderstood the relevant Act, which states the … levy is not payable for construction works on Commonwealth land.”
Internal communications is now being overhauled to better explain when the levy applies, the spokesman said.
The blunders emerged after controversies over lavish board spending, including billing taxpayers $47,000 for an anniversary dinner for 110 people and interstate travel, as well as rows over members’ experience.
Mr Pisoni said the board’s interim chief executive, former PwC director Derek Clarke, had audited “historical financial practices” and returned focus to supporting construction sector skills.