New probe into Australian Bragg Centre cancer proton unit debacle as Premier says US firm has ‘extraordinary’ questions to answer

Decisions around an SA cancer-­fighting facility on the brink of collapse will be formally scrutinised as questions mount about the “extraordinary” potential hit to taxpayers.

Decisions around the world-leading cancer-­fighting facility that is on the brink of collapse will be formally scrutinised as questions mount about the “extraordinary” potential hit to taxpayers.

The $500m Australian Bragg Centre, formerly SAHMRI 2, was due to host the country’s first proton beam therapy unit in a fortified concrete “bunker” by the end of last year.

But The Advertiser last week revealed the southern hemisphere’s first such unit is at “significant risk” of failure, leaving South Australian taxpayers “on the hook” for “many millions of dollars” for at least the next 15 years.

Amid mounting questions at Boston-based Pro Tom International, the American firm hired to deliver the cutting-edge technology to the three-storey bunker, MPs will scrutinise the project.

PTI, which installed a proton therapy system only at Boston’s Massachusetts General Hospital, has asked South Australian Health and Medical Research Institute for “more time” and a “significant” bailout.

SAHMRI has so far refused to agree on official advice.

Premier Peter Malinauskas has said the US company, which filed for voluntary “Chapter 11” bankruptcy in 2015, has “extraordinary questions” to answer on decision that were “questionable”.

The proposed Australian Bragg Centre proton therapy unit spearheaded by the South Australian Health and Medical Research Institute. Picture: SAHMRI

Mr Malinauskas, who was briefed on the crisis as were Cabinet colleagues, said the state government was “examining other options” with other potential providers.

“I think this company has really put this state, and the federal government, in an extraordinary position,” the Premier said.

“Governments are held to account. Companies such as Pro Tom should be held to account (also).”

Upper House politicians will now question senior bureaucrats from SA Health and Treasury over the coming weeks about any due diligence, the full extent of taxpayers’ exposure and “how this failure could have been avoided”.

The Legislative Council’s Budget and Finance Committee will also meet on Monday to discuss if SAHMRI officials need to be summoned.

“This situation couldn’t be more serious because lives are on the line and this frustrating delay under the Malinauskas Labor Government will be questioned in detail,” said committee chairwoman, Upper House Liberal MP Heidi Girolamo.

“SA Health and the Department for Treasury and Finance will testify in coming weeks on the proton therapy unit and how this failure could have been avoided.

“If we are not satisfied with the answers provided, consideration will be given to initiating a standalone committee of inquiry to delve deeper into this health system mess.”

Following a scrambled trip SAHMRI, SA Health and Treasury officials took the US three weeks ago for urgent crisis talks with the US firm, Treasurer Stephen Mullighan said last week: “At this point in time the project is at significant risk.”

The Australian Bragg Centre, which will house five floors of SA Health workers. Picture: Matt Loxton

His spokeswoman said on Sunday that SAHMRI was working with PTI on the “contract issues”.

“There are a range of commercially confidential issues that are being discussed and the Treasurer has provided as much information as possible to parliament at this time,” she said.

“As further information is available, the Treasurer will update parliament.”

She said the Treasury department appeared before the committee “regularly”, and while officials answered questions, some commercial in confidence information stayed secret.

The therapy uses a proton beam capable of pulverising inoperable cancers or tumours near the brain, spinal cord and eyes, with negligible damage to healthy tissue.

A Commonwealth “grant” in 2017 provided $68m in taxpayer funds for the pioneering equipment.

PTI, which has declined to comment, has already been paid almost $45m.

The former Weatherill Labor state government also committed more than $47m to a second SAHMRI building, which will include a three-storey bunker to house the facility.

This included state more than $10.6m in planning along with almost $37m to relocate the Train Control Centre from North Tce to Dry Creek under a 99-year lease deal.

Originally published as New probe into Australian Bragg Centre cancer proton unit debacle as Premier says US firm has ‘extraordinary’ questions to answer