Housing Trust agency chief executive Michael Buchan in shock move amid homes crisis; tradie pay scandal

The boss in charge of SA’s public homes has not had his six-figure contract renewed amid the state’s crippling housing crisis and the agency’s tradie pay scandal.

Former SA Housing Authority Chief Executive Michael Buchan, pictured in February 2019. Picture: Mike Burton

The boss who oversees South Australia’s public homes has departed his six-figure role amid the state’s crippling housing crisis and tradie pay scandal.

In a surprise move, the state government did not renew SA Housing Authority chief executive Michael Buchan’s $474,269-a-year contract after almost six years.

Mr Buchan, appointed under the former Liberal government after being embroiled in a $100m land deal scandal, abruptly left a week ago after his contract was not renewed.

Sources said the board decision of the newly renamed SA Housing Trust – six years after it was rebranded an authority – blindsided his department colleagues.

They said bureaucrats were “running around like headless chooks” after the decision, which ministers supported amid mounting problems facing the agency.

Senior officials said the department, battling housing shortages and a taxpayer tradie pay scandal, needed an overhaul to manage almost 34,000 properties with an average 44-year age.

The state government last month launched a high-level review into widespread failures by private contractors an Advertiser investigation exposed with the almost $1bn Trust maintenance contract.

“Amid a housing crisis having stock left vacant and unfit for tenancy, due to delays in maintenance, is egregious and a situation that must be rectified as a priority,” the government’s “housing road map” concluded.

An official new crackdown on bad taxpayer-funded public housing tenants is also being investigated, which will include tougher enforcement and more assistance.

The new Housing and Urban Development department chief executive, David Reynolds, is acting Trust boss – which Cabinet “noted” – while a replacement is recruited.

In response to inquiries, Housing Minister Nick Champion – who last week held industry crisis “roundtable” talks – said he supported the Trust board’s decision as he thanked Mr Buchan’s “dedication to public service”.

“It’s time for new leadership at the Trust,” he said.

The state government did not renew SA Housing Authority chief executive Michael Buchan’s contract (pictured left) after almost six years. Picture: Supplied

Mr Champion said the recent road map had a “comprehensive suite of initiatives the Government is implementing to address the critical under supply of housing in our state”.

“As part of this, we are renaming the Housing Trust and giving it a new mission to build more public housing and this will be done under new leadership,” he said.

Left to Right: Mary Patetsos, presiding member, SA Housing Trust Board, Lana Storkey, wife of former trust Presiding member Gary Storkey and Michael Buchan, former chief executive, SA Housing Trust. They are pictured in April at the opening of Storkey Way in Morphettville. Picture: Supplied

In a leaked note to staff, Trust presiding member Mary Patetsos said her board made the decision “to help drive” the government’s new agenda.

Opposition spokeswoman Michelle Lensink, who appointed Mr Buchan in December 2018, praised his “exemplary service”, adding he’s “highly regarded across the industry”.

“I trust that the Malinauskas Government will perform a similarly robust national recruitment process to find a new CE with the skills and experience to replace Mr Buchan,” she said.

Mr Buchan, a highly regarded property industry figure who has extensive experience across the public sector, did not respond to inquiries.

In 2015, Mr Buchan was found to have engaged in “conduct that constitutes maladministration in public administration” after an Independent Commissioner Against Corruption investigation into the controversial $100m Gillman land deal.

Mr Reynolds, who took over on Friday, June 29, will not receive a pay rise from a current $553,551 remuneration package for his “temporary appointment”, officials said.

The new “super” department includes Housing SA, Renewal SA, Plan SA, SA Water, Design and Architecture as well as the offices of Valuer, Surveyor and Registrar generals.

David Reynolds, is the new chief executive officer of the “super” Department for Housing and Urban Development. Picture: Supplied

Under machinery of government changes, effective last Monday after Cabinet approval, Mr Reynolds’ Trade and Investment responsibilities move to the newly named Department of State Development.

Chief executive Adam Reid will still lead his former Department for Industry, Innovation and Science agency but will still earn $427,914.