Twist in SA Housing Authority repair pay scandal amid claims ‘rogue tradies’ are working on trust homes

The public housing tradie repair pay scandal has deepened amid allegations unlicensed tradies are working on taxpayer-funded projects to plug labour shortages.

The public housing tradie repair pay scandal has deepened amid allegations unlicensed tradies are working on taxpayer-funded projects to plug labour shortages.

The state government has promised to “fully investigate” widespread failures after an Advertiser investigation found problems with the almost $1bn SA Housing Trust maintenance contract.

Carpenters, electricians and plumbers are owed “significant sums” – some more than $100,000 – after fighting for months to be paid for 2023-dated invoices.

But in what authorities said was “concerning”, subcontractors claimed to have witnessed “unlicensed” builders working on trust homes, which are, on average, 44 years old.

They reported seeing them “endlessly” working across Adelaide on Spotless Facility Services’ SA Housing Authority job sites.

Under state law, builders must be registered with the state government, which allows for audits, other standard checks and insurance.

Acting Consumer Affairs Commissioner Fraser Stroud said he took claims of illegal work “incredibly seriously”.

“We would urge anyone with concerns about potentially unlicensed tradies to contact us,” he said.

Spotless, a Downer Group subsidiary company that won $630m for an almost eight-year contract in 2022 for social housing maintenance services, covers Adelaide, Hills, Barossa Valley and Fleurieu Peninsula maintenance while RTC Facilities Maintenance (SA) manages the Western Country Far North.

A Spotless spokesman said it delivered responsive maintenance, vacant restoration and minor works projects” to more than 27,000 authority dwellings.

“Not all works are required to be performed by licensed tradespeople,” he said.

But he said for the majority of jobs it was a “mandatory contractual requirement” to have licensed tradespeople who are “capable, competent and qualified to perform the works”.

“This requirement extends to any sub-subcontractors used,” he said.

“Spotless has a rigorous induction process in place … to confirm all personnel and subcontractors are adequately trained and hold all necessary licences, permits and qualifications.

“Spotless also regularly audits (them) to ensure ongoing compliance with these requirements.”

An RTC spokesman said the company “continuously monitor subcontractor licencing in line with regulatory requirements”.

A spokesman from Torrens Facility Management, which manages the Riverland and South-East, said his company’s procedure requires all subcontractors be appropriately licensed.

“We’re regularly audited by SAHA in that regard,” he said.

Torrens is not claimed to have any unlicensed tradies on its sites nor is accused of any wrongdoing in the scandal

Opposition spokeswoman Michelle Lensink said the claims raised serious questions as she urged Premier Peter Malinauskas to act.

“(He) must conduct a thorough investigation into these public housing failures on his watch – including spot audits of maintenance jobs – to restore confidence in the government’s ability to carry out this important work,” she said.

“These claims that unlicensed tradies are being used to carry out housing trust maintenance work are concerning to say the least.

A spokeswoman for Housing Minister Nick Champion and Consumer and Business Affairs Minister Andrea Michaels, said the government was “concerned about unlicensed tradies full stop”.

“(We’re) working hard to stamp them out,” she said.

“Protecting South Australians from dodgy tradies is a major focus … with regular inspections, alerts and warnings.

“Not every job requires a license, some tasks such as basic repairs or maintenance might not need it.

“However, anyone caught carrying out work without a license, where one is required, can expect to face harsh penalties.”

Government figures show a 20 per cent spoke in CBS complaints about unlicensed plumbers, gas fitters and electricians in the past financial year.

Originally published as Twist in SA Housing Authority repair pay scandal amid claims ‘rogue tradies’ are working on trust homes