Australian courts quiz Multiplex on Wembley and mall scheme

Shareholders launched a A$150m (£63m) class action against Multiplex last December for failing to disclose full information on the material cost increases and construction delays on Wembley before February 2005.

Now, lawyers representing the shareholders are demanding that the results of an official investigation into the company’s financial reporting during 2004 and 2005 be revealed to the court.

This could lead to confidential documents on the project’s financial losses being revealed in court.

Justice Peter Heerey is expected to rule soon on whether or not the documents should be shown to the court.

In a separate case, Multiplex is being sued by demolition contractor Charkey Ramon, which worked on the Pitt Street Mall in Sydney in the nineties, for unfair treatment.

In the case, Multiplex’s recently departed financial controller Ian Widdup is testifying against his old company.

In his affidavit, Widdup alleges that the contractor regularly gave backhanders to the unions and would actively seek to put subcontractors out of business.