A combination of internal division and disagreement with parent company Hochtief created conditions which led to questionable decisions regarding corporate governance Australian at construction giant Leighton Holdings, a media report says.

Quoting anonymous sources, a report in the Australian Financial Review says two former chief executives of Leighton, Wal King and David Stewart, were allegedly aware of kickbacks paid to secure contracts in Iraq. King has publicly denied having any knowledge of any improper payments, but former executives say he at…