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Laing O鈥橰ourke鈥檚 Australian boss has stepped down amid allegations of corruption at his previous employer Leighton Holdings.

Laing O鈥橰ourke said David Stewart had resigned as chief executive of its Australian business with immediate effect following recent media reports in Australia relating to business practices at Leighton Holdings, where he was chief executive.

The reports concern alleged cover ups and bribery at the Australian mining and construction giant, which last year sparked a federal police investigation.

The latest reports contained details of hundreds of confidential documents that alleged that corruption was rife across the company.

In a three-page statement to the Australian Securities Exchange, Leighton said it was 鈥渄eeply concerned鈥� by the allegations but was not aware of any new allegations or instances of a breach of its ethics.

Laing O鈥橰ourke said Stewart had resigned so that he could concentrate exclusively on addressing the allegations without the risk of causing damage to Laing O鈥橰ourke鈥檚 reputation.

Laing O鈥橰ourke said Cathal O鈥橰ourke had been appointed managing director of Laing O鈥橰ourke鈥檚 Australian business with immediate effect.

Laing O鈥橰ourke Group chief executive Anna Stewart, said: 鈥淚 am grateful to David for taking the tough decision to step down at this time. His action respects the exemplary business values and ethical practices that Laing O鈥橰ourke maintains through its relationships with our clients and stakeholders.鈥�

In the year to 31 March 2013, the firm鈥檚 拢1.6bn turnover Australian business bounced back into the black after two years of losses, reporting profit of 拢25m.

David Savage, Leighton鈥檚 former chief operating officer, also stepped down from the board of Keller last week, where he has been a non-executive director since 2011.