The State Liberals have asked the Small Business Commissioner to consider the cases of nine businesses who are collectively owed more than a $1 million due to the collapse of Elite Systems.
To date nine small businesses have contacted the State Liberals about money owed to them by Elite Systems stemming from its contract with the State Government to put up and pull down grandstands at this year’s Clipsal 500 event.
“The Weatherill Government’s silence regarding the plight of these South Australian businesses has been deafening and sickening,” said Shadow Minister for Tourism David Ridgway.
“I expect more cases of South Australian businesses being ripped off by Elite Systems to come to light in the coming days.
“What I don’t want to see happen is the Weatherill Government running for cover on the matter of compensation for South Australian businesses that ensured this year’s Clipsal 500 was an outstanding success.
“The State Government’s failure to investigate the history of Elite Services resulted in at least nine South Australian businesses losing more than one million dollars.
“The fact of the matter is red flags about the financial viability of Elite Systems should have been picked up before the State Government contracted the company to provide services to this year’s Clipsal 500 event.
“Just 5 months after the State Government entered into the contract with Elite Systems the business went into external administration owing South Australian small businesses more than one million dollars.
“It is totally unacceptable that a South Australian small business has been left high and dry as a result of State Government incompetence.”
“The Weatherill Government continues to demonstrate blatant disregard for the South Australian small businesses left out of pocket by the Government’s failed Clipsal contract.
“The arrogance of the Weatherill Government’s failure to respond is a slap in the face to the small businesses who have been left to hang out to dry by Elite Systems.”