Murdoch Women and Babies Hospital builder Webuild has revealed it purchased the interest of its joint venture partner, Roberts Co, weeks before the company was placed in voluntary administration.
News of Roberts Co’s collapse this week cast doubt over the ability of the Italian construction giant to build the $1.8 billion facility after it and Roberts Co were put in the hot seat in December.
Health Infrastructure Minister John Carey.Credit: Hamish Hastie
Roberts Co, owned by billionaire Andrew Roberts, was placed in administration earlier this week.
In a statement, Webuild downplayed Roberts Co’s stake in the WA Life joint venture, and revealed it had purchased its interests a few weeks ago, noting the company was in financial distress.
A spokeswoman said the purchase was made with the WA government’s permission and that Webuild was close to announcing a deal.
“Since being named as preferred [builder] in December 2024, WA Life and the state government have been working closely and collaboratively to finalise the contract,” she said.
“During this period, Roberts Co, who held a minor participation interest in WA Life, have advised that they wished to withdraw from the WA Life team.
“Both the state and WA Life have agreed to this request, whilst ensuring that all critical resources continue to be available for delivery.
“Over recent months the state and Webuild as WA Life have continued negotiations, in the same open and collaborative manner, and are close to finalising all aspects of the contract for the new hospital facilities
“The government has been positive about Webuild acquiring Roberts Co interest, and we are progressing as preferred candidate.”
Opposition leader Basil Zempilas said there was clearly a breakdown of due diligence that should have ensured the joint venture was safe, sound and reliable.
“What we continue to see from the Cook Labor Government is spinning their way out of issues that they have created for themselves and not being straight with the people of Western Australia,” he said.
Health Infrastructure Minister John Carey denied the builder’s collapse would impact the timeline of the hospital project.
“We obviously review in terms of the probity, and then we continue to negotiate with Webuild, and that’s what we’re doing. But I must be clear, we do not have a contract as yet, but we are still in a live process,” he told the ABC on Thursday morning.
Asked whether the state should have done more due diligence to pick up on Roberts Co’s issues, Carey said the proper governance arrangements were in place.
“What I do want to assure you is ... we do believe that we are coming to a resolution soon, that we will be able to make those announcements and, of course, provide full details of the contract to West Australians,” he said.
Carey said the government was still committed to the 2029 timeline for the hospital’s opening.
“We are confident in terms of delivering this project on time,” he said.
The latest wrinkle adds to an already controversial history with the Murdoch hospital.
The project became a political hot potato ahead of the state election, with the Liberals committing to moving it back to its original intended site in Nedlands, citing concerns from doctors about not co-locating the hospital with the Perth Children’s Hospital.
In December, WA Premier Roger Cook and then-health minister Amber-Jade Sanderson signed a letter of intent with a joint venture between WeBuild and Roberts Co.
The letter locked the government into negotiations with the joint venture, which will build the new women and babies hospital and upgrades to maternity services at Osborne Park Hospital.
A Department of Finance spokesman said: “procurement processes for all major projects involve bespoke financial assessments as part of extensive and confidential evaluation and negotiation processes.”
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