Updated May 23, 2018 20:48:13

Photo: The Hawkei is a smaller version of the older Bushmaster troop carrier. (ABC News: Roy Frattinger)

One of Australia's largest defence companies has launched legal action against the Auditor-General over a report that criticises the handling of its $1.3 billion Hawkei project for new armoured vehicles for the Army.

The ABC can reveal Thales Australia recently applied for a Federal Court injunction against the Australian National Audit Office (ANAO) over the report, which is yet to be tabled in Federal Parliament.

The Auditor-General has confirmed Thales Australia asked that some information be excluded from the audit of its Hawkei project, but the request was rejected.

The French-owned company then launched action in the Federal Court to have that decision reviewed, with a hearing now scheduled for July.

A spokesman for Thales said the company was not in a position to comment on the dispute as the matter was before court.

"Hawkei delivers a lifesaving capability to the Army, designed and manufactured in Australia," the spokesman said.

"Out of respect for the legal process, we can't make any comment on the matter before the court."

Take a look at the features of Australia's newest military vehicle, a next-generation light troop carrier named — in a roundabout way — after former PM Bob Hawke.

In recent months several defence companies have expressed private frustrations at the ANAO's work, believing some of its reports have contained blatant errors that have unfairly hurt their reputations.

However, crossbench senator Rex Patrick said he was concerned to see a company take the Auditor-General to court.

"I am mindful that this matter is before the courts and I am not aware of the full details of this case, but I will state as a matter of principle that the ability of the Auditor-General to report, without fear or favour and free of interference, is of vital importance to ensure effective scrutiny of how the Government spends taxpayers' dollars," Senator Patrick said.

"The legislation that establishes the Auditor-General's position makes it clear that the Auditor-General has 'complete discretion in the performance or exercise of his or her functions or powers' and is 'not subject to direction from anyone' in relation to the conduct of any audit.

"External influence on the work of the Auditor-General would be a very serious matter for the Parliament and I intend to bring this issue to the attention of the Parliamentary Joint Committee of Public Accounts and Audit, a committee that I am a member of."

Thales was awarded the $1.3 billion contract in 2015 to build 1,100 Hawkei light armoured vehicles and 1,000 specialised trailers for the Army near the central Victorian city of Bendigo.

The Hawkei is a smaller tactical vehicle with enhanced protection designed to replace the ADF's ageing Land Rovers in high-threat areas.

Thales developed it from experience gained through the Bushmaster and global developments in ballistic protection and power management for military use.

Topics: government-and-politics, defence-and-national-security, business-economics-and-finance, defence-and-aerospace-industries, defence-forces, army, australia

First posted May 23, 2018 17:37:18