Australia’s construction union has revealed a company charged with building two Canberra suburbs operated one of its project sites without insurance.

According to an ABC report, Akron was employed by the ACT Government to build two new suburbs in the north of the city.

The company subsequently went into voluntary administration, and in a creditor meeting last week it emerged one project operated without insurance for at least four months.

It’s alleged the company falsified its statutory declarations. Akron owes Canberra subcontractors more than $500,000 completed work on the two suburbs, it was reported.

Construction, Forestry, Mining and Energy Union spokesman Dean Hall told the ABC the potential liability from the exposed project was huge. “That again would have fallen onto the ACT Government if someone were to hurt themselves there”.

He called on the ACT Government to make up for its procurement failures by paying those subcontractors left out of pocket. 

Chief Minister Jon Stanhope defended his government’s tendering process, saying the company gave every indication of being a large and financially viable business.