Whistle blower’s warning to QBCC

A FINANCE and accounting specialist sent the QBCC detailed financial statements claiming Queensland One Homes was trading while insolvent 14 months before their licence was cancelled.

The whistle blower sent pages of documents obtained through a court action and warned the QBCC that allowing the company to keep their licence would likely “cause problems to the whole society”.

Queensland One Homes went into liquidation in July this year, with more than 100 creditors claiming debts of over $3.7 million.

The Bulletin has obtained emails showing the concerns were raised in May 2016 by a director of Mercury International Investments, a development company which claims it is owed more than $1.5 million by the failed builder.

The company applied for Queensland One Homes to be wound up in 2015, but it was dismissed in 2016 following out-of-court negotiations.

The QBCC said it had used information provided by the investor, who holds a PhD in finance and a masters in accounting and finance, in its investigations – but had found no grounds at the time to cancel the Queensland One Homes licence.

“A full audit was commenced by the QBCC on 17 December 2015, internal management accounts were requested on 23 August 2016, and internal management accounts were again requested on 23 January 2017,” a statement from the regulator said.

“On all three occasions, Queensland One Homes Pty Ltd provided information showing the company met its financial requirements to be licensed.” To keep their building licence, construction companies must meet minimum financial requirements, which are reviewed and certified by an “accepted independent accountant”.

Accountants who submit false or misleading statements can face up to two years in jail.

QBCC did not complete a full audit at that time, and waited three months before requesting information from the builder.

“The examination of these accounts did not provide evidence of an inability to meet MFR, nor did it reveal evidence of fraud,” it said.

Investigations into the collapse of Queensland One Homes and into allegations of illegal phoenix activities regarding related company Empire Constructions Pty Ltd are continuing, as well as a probe into a third company, FRD Homes. A HOME buyer burnt by the collapse of Queensland One Homes Pty Ltd has developed an app he thinks could prevent the disaster happening to others.

Dave Adams is out of pocket up to $100,000 after dealing with the failed Gold Coast con-