Court looks into collapse

A PUBLIC court examination will be held into the collapse of Rockhampton-based JM Kelly Builders Pty Ltd in a bid to obtain information to support potential civil and criminal claims.

Building industry regulator, the QBCC, has announced the $200,000 funding comes after talks with the liquidator PwC and follows what it says have been months of talks.

It also comes in the wake of coverage this week of the spate of high-profile builder collapses across the state since 2013.

Witnesses are likely to include company director John Murphy. Mr Murphy declined to comment on the latest development.

But in a response to questions earlier this week put to John Murphy and his father Geoff, as part of the Back our Subbies series, Mr Murphy senior said there had been no wrongdoing.

“As someone who has been in the industry all my life and for over 60 years, I find it abhorrent that both the Minister and the QBCC are destroying the construction industry and they need to be held responsi- ble for their actions and the impact their decisions are having on all stakeholders in the industry,” he said.

Liquidator Derrick Vickers, of PwC Australia, said the examination process may uncover information relevant to ongoing Queensland Police investigations following earlier referrals by the liquidator.

“We will exercise our powers as liquidators to the fullest extent, with an objective to maximise recoveries for the benefits of creditors,” he said.

“Conducting a public examination will allow the liquidators to advance our ongoing investigation in relation to the collapse of the company, and to obtain information to pursue civil claims and support criminal claims that may exist.

“As part of the examinations, we will seek the approval of the court to issue summons to individuals to produce materials and answer questions under oath before a magistrate or a Federal Court judge.”

The liquidator’s report filed with ASIC refers to:

• Minimum Financial Requirements Reports provided to the QBCC by auditors

• Insolvent trading

• Potential shadow or de facto directors of the company

• Breaches of director duties

• Voidable transactions, including director-related transactions

• Significant transactions involving related entities of the JM Kelly Group and their associates

• Statutory Declarations signed by authorised officers of the company

Some or all of these issues are likely to be raised during the examination.

QBCC Commissioner Brett Bassett said the Commission had been working with PwC Australia since the liquidation to ensure those affected by the company’s collapse were given every chance to get the money they were owed.

The public examination is expected to be completed within six months.