Fury over secret fines for private service contractors as Housing Trust SA maintenance crisis deepens

There are calls for SA’s spending watchdog to step in as taxpayers remain in the dark over “abatements” slapped on contractors amid a row over a public homes maintenance contract.

Taxpayers are in the dark about secret fines issued over the embattled public housing maintenance contract amid calls for the state’s spending watchdog to investigate failures.

A secrecy row erupted after authorities refused to disclose details on “abatements” slapped on private contractors spending almost $1bn of public money upgrading Housing Trust properties.

The state government last year launched a high-level review into widespread contractor failures exposed after an Advertiser investigation.

Ministers claimed disclosing the number, or value of, imposed abatements – a financial penalty that withholds contract payments – were “commercial in confidence”.

But the opposition criticised the secrecy and called for Auditor-General Andrew Blaskett to “fully examine” Labor’s contract “failures”.

Minister for Housing and Urban Development Nick Champion. Picture: NewsWire / Roy VanDerVegt

Adelaide’s southern suburbs from the air. Picture: Brenton Edwards

The maintenance review, which was handed to a “concerned” Housing Minister Nick Champion in October last year, is also under wraps as Cabinet confidentiality rules ban public disclosure for 10 years.

Liberal Upper House MP Michelle Lensink said transparency was important as the Trust was SA’s biggest landlord housing “our most vulnerable citizens, including families escaping domestic violence and people who have experienced homelessness”.

“In the middle of a housing and homelessness crisis, the government must be fully transparent about the $1bn public … spending,” she said.

“Housing is only getting worse around the state and the government needs to be kept accountable.

“South Australians deserve to know what changes are being made and what penalties have been issued. The government can’t keep claiming commercial in confidence.”

She said delays in repairs to homes have blown out since Labor was elected in 2022.

“The Government ignored this issue until The Advertiser’s damaging story about tradespeople not being paid in June,” she said. “Quite frankly, that’s not good enough.”

Providers include Spotless Facility Services, which covers Adelaide, hills, Barossa Valley and Fleurieu Peninsula.

A Spotless spokesman declined to say if it had been fined.

“Spotless is committed to delivering outstanding services for tenants of SA Housing Trust dwellings,” he said.

“Since taking over the contract, Spotless has identified a range of opportunities to improve maintenance outcomes.

“We’re working collaboratively with the Trust to implement changes that will enhance services for the benefit of tenants.”

Michelle Lensink, left, criticised the secrecy. Picture: NCA NewsWire / Morgan Sette

Torrens Facility Management covers the Riverland and South-East while RTC Facilities Maintenance (SA) has the Far North and west coast.

An RTC spokesman said requested information was “commercial in confidence and therefore cannot be disclosed”.

He added: “RTC continue to work closely with the Trust to address the regional challenges that exist.

“Despite the difficult economic climate, and trade resourcing shortages being experienced … across the country, the improvement in service delivery … continues to be our focus.”

The other firm was unavailable for comment but has previously denied wrongdoing.

Senior officials admit the agency needs an overhaul to manage almost 34,000 properties that, while valued at more than $13.2bn, has an average 44-year age.

The Trust conducts regular performance reviews while two contractors, including the largest, must complete “service improvement plans” and report to government bosses weekly.

Official figures, released under Freedom of Information laws, show a rising rate of late Housing Trust maintenance orders despite a record low number of repairs tackled last year.

Mr Champion, who took charge of the Trust’s operations in a new “super housing” portfolio, said the government was “financially responsible in applying abatements”.

He said the service providers “won a competitive tender process … under the direction of the former Liberal Government”.

“Abatement figures are linked to the management fee, and disclosure of amounts will compromise confidential information in relation to the amount of the management fee,” he said.

“For the first time in a generation the Malinauskas Labor Government is improving the quantity and quality of public housing in South Australia.

“This is in stark contrast to the Opposition, who had no future public housing policy at the last election.”

Mr Champion said authorities were “assessing its options” before Cabinet rules on any maintenance reforms.

Ms Lensink said the former Liberal government started a contract review in 2022 but Labor took charge of it and “has been playing a blame game ever since”.

Originally published as Fury over secret fines for private service contractors as Housing Trust SA maintenance crisis deepens