Warning for the subbies

COMMONWEALTH Games athletes village subbies caught out by a site contractor’s collapse are being warned payouts could be “clawed back”.

The site developer Grocon confirmed last Thursday it had paid out $1,002,500 to 29 subbies left out of pocket when Grocon contractor Ware Building Pty Ltd went into liquidation two weeks ago.

Subcontractors Alliance spokesman Les Williams said professional advice to him indicated the money paid to Ware subbies could be “clawed back” if not paid in accordance with the Subcontractors Charges Act.

“The timing is irrelevant – it can be considered preferential as against other creditors. Hopefully it was done properly as the payments have been made very public.

“The liquidator will be reading with interest,” he said, and suggested subbies get advice on the matter.

Grocon stepped in and committed to paying the outof-pocket subbies after fed-up Games Minister Kate Jones summoned the company CEO to a meeting in Brisbane.

Ware Building liquidator Scott Newton, of Shaw Gidley, said it was difficult to say whether the Grocon payments to subbies were something he would be looking to claw back.

“I don’t know the basis for how they have paid the subcontractors.

“All transactions are things the liquidator will have to look at but if Grocon have paid it out of their own money at their own cost that wouldn’t be an issue from my perspective.

“My only concern would be if it was paid out of money that was going to be coming to Ware.”