Multiplex Constructions Pty Ltd (Multiplex) has refuted newspaper allegations that it is under scrutiny by the Australian Federal Government into allegations of ‘improper and illegal activity’ within the Australian building industry as ‘defamatory and untrue’.
The Sydney-based developer of Stadium Australia, which has been selected to build the new Wembley Stadium should the project go ahead, has dismissed allegations made in The Guardian and Evening Standard on (Wednesday) December 19, 2001.
The company, which is now ranked among the major construction businesses in the UK by value of current project work, says it is not being investigated by the Australian Federal Government Royal Commission – as the newspapers reported.
Multiplex takes great pride in the ethical way it has built the business over 40 years and says the Commission is actually looking into improper bargaining and corrupt practices by Australian building unions.
As one of Australia’s largest contractors, Multiplex expects to be asked to co-operate with the commission on several construction projects – and so will all other major building contractors. This fact has been confirmed by Tony Abbott, Australia’s Minister for Employment, and the person responsible for calling the Royal Commission.
He described Multiplex as having an ‘international reputation for creativity and innovation’, adding: ‘For the record, let me state that the Cole Royal Commission is not enquiring into any particular company but into coercive and collusive conduct in the building and construction industry generally.’ Multiplex does not believe there will be any findings against it during the Royal Commission.
One of the largest privately owned companies in Australia, Multiplex is now forging an impressive pan-European business from a London base. It is highly acclaimed for work on many major construction projects, including Stadium Australia, which hosted the opening and closing ceremonies and track & field events for the 2000 Sydney Olympics.
New South Wales Treasurer and Minister for State Development, Michael Egan, supported the company, stating: ‘In the year 2000, the world got to see the magnificent result of Multiplex’s expertise: Stadium Australia. This certainly helped make the 2000 Sydney Olympics ‘the best ever’.’
Mr Egan continued: ‘It is inappropriate for this company [Multiplex] to be subjected to a campaign of untrue claims which diminish its reputation and those of other Australian companies associated with the Stadium Australia project, which has been acknowledged internationally as a wonderful venue for major sporting events. The Multiplex performance in delivering the project ahead of time and on budget was exemplary. It is perfectly qualified to deliver a showpiece stadium for Wembley, which will be the best in the UK and probably the world.’
The newspapers also alluded to significant cost overruns on the Federation Square Project in Melbourne, Victoria. Multiplex said costs were prone to change on any major construction project and had done so in this particular case because significant design changes had been made ahead of and during construction.
This was reaffirmed by the Federation Square’s Chief Executive Officer, Peter Seamer, who said: ‘Multiplex are not responsible for the cost budgets of the project as design control rests with our company. Major cost growth on the project largely changed after it was initially conceived.’
It was also suggested that the Perth Glory stadium, a new football stadium in Western Australia, had to be scrapped in May after Multiplex failed to meet a deadline to find funding. Multiplex says this suggestion is totally unfounded and the project did not go ahead because the Government of Western Australia decided it was not commercially viable.
This fact was endorsed by the minister with responsibility for the project. Nick Tana, Chairman of Perth Glory, said: ‘Multiplex worked closely with Perth Glory throughout our negotiation period and I believe that they used their best endeavours to finance the project. Unfortunately the scope of the project was substantially enhanced by the State and Perth Glory could not afford to lease the facility and hence the project was commercially unviable.’
Paul Gandy, Multiplex UK Managing Director, said: ‘These articles are both defamatory and untrue. It is unfortunate that facts have been ignored in an attempt to damage our bid to build a new national stadium for English sport.
‘Wembley has been a national and international icon for world football and we are determined to make English fans as proud of the new Wembley stadium as Aussie fans are of Stadium Australia. Multiplex is one of Australia’s largest and successful construction companies and is both proud to have been selected by the Football Association, and supported by Sport England, to build Wembley – if it goes ahead.’
He continued: ‘We pride ourselves on our good reputation, which has been built on over 40 years of business and helped us to become not only one of the biggest but also one of the best in our industry. Indeed, Multiplex was voted one of the most ethical companies in Australia in an independent study of the top 100 Australian companies, published recently.
‘For those who are interested, we have posted all of the facts about Multiplex, and our work on projects mentioned in the newspaper articles, together with client and Government responses to the allegations, which support Multiplex, on our web site at www.multiplex-stadium.com ‘
Multiplex is currently seeking redress from both publications.
For further information please contact:
Bell Pottinger Public Relations,
David Wilson – mob: 07909 974 994
Sara Jones – mob: 07802 484 380