John Biles Found?

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                John has been found, the word is he is working for another building firm in Toowoomba and at least one tradie has talked to him so far, Johns reaction was it was all still ongoing and yet to be finished with, and guesses a few people will catch up with him. if you would like to talk to John give Suncrest Homes a call

Coral Coast Homes victim's charge pulled

LOSING his temper at a community meeting saw Coral Coast Homes and Steelsmart customer Shane McMullen land in court on charges of public nuisance and obstructing police.
But yesterday, when the charges were dropped by Bundaberg Police prosecutors, Mr McMullen said he would have had no regrets even if he had been punished.
“I wanted go to court so I could get my side of the story heard,” Mr McMullen said.
Mr McMullen lost $70,000 when Steelsmart collapsed, and approached Minister for Public Works Robert Schwarten at a Community Cabinet meeting in August.
However, during a heated discussion, Mr McMullen allegedly threw a water jug and injured Mr Schwarten’s hand. The Minister did not press charges, but Mr McMullen was charged by police.
He said yesterday that he was disappointed the case against him had been dismissed.
“I wanted to see the Minister in court so that I could get answers,” Mr McMullen said.
“The whole thing happened because (Mr Schwarten) kept telling me that I should have had (BSA) insurance, and he didn’t seem to understand when I told him I wasn’t eligible because I had a kit home.”

Victims criticise CMC report

HOMEOWNERS left out of pocket by the collapse of Coral Coast Homes and Steelsmart Homes have criticised a report by the Crime and Misconduct Commission, saying it did not investigate the matter fully.
At a public meeting hosted by Member for Burnett Rob Messenger on Thursday night, the former customers tallied the information they had against the report’s findings.
“When we went through the report line by line, it became clear that the figures did not correspond with the information that we have,” Mr Messenger said.

The report states the Building Services Authority only received three complaints from creditors of Coral Coast Homes between November 2008 and April 2009, but Mr Messenger believed more should have been registered.
“It appears that Steelsmart Homes was not investigated at all, and if that is the case, it is a problem that needs to be rectified because there are so many victims who have lost hundreds of thousands of dollars to Steelsmart.
“It also needs to be made clear whether tradespeople’s complaints were investigated,” Mr Messenger said.
He said he would ask questions on notice to Minister for Public Works Robert Schwarten about the investigation, including the credentials and background of the independent investigator who wrote the report.
Former Coral Coast Homes customer David Kapp said he was still out of pocket thousands of dollars that would not be covered by the BSA’s Statutory Home Warranty Insurance Scheme, and he wanted the matter investigated fully.
“Even though there is a question mark over whether it is a rigorous report, it’s amazing that it has found so many faults with the BSA’s record-keeping, legislation and staffing arrangements.
“It has swept too much under the table and under the carpet — the investigator hasn’t interviewed any of the customers,” he said.

Homes inquiry bites watchdog

THE BUILDING Services Authority has been told to clean up its act by the Crime and Misconduct Commission, after an investigation into the watchdog’s handling of the collapse of a Bundaberg building company.
The BSA came under fire after Coral Coast Homes went into liquidation in June, with allegations that it failed to investigate complaints from tradespeople and customers

While the CMC’s independent investigator found no evidence to support those accusations, he uncovered a number of systematic problems with the BSA’s policy and procedures guidelines, record-keeping, staff training and quality control of audits.
Read more on the collapse of Coral Coast Homes
Former Coral Coast Homes customer David Kapp and dozens of other customers lost thousands of dollars when the company went into liquidation after trading insolvent for up to six months.
Yesterday Mr Kapp was celebrating, after a six-month long battle for the BSA to be overhauled.
“The attention from the NewsMail and Rob Messenger has brought (the BSA) out to be the toothless tiger they have proved to be,” Mr Kapp said.
“It doesn’t help me, but I hope it will prevent any future problems like this one.”
In a letter to Member for Burnett Rob Messenger, the CMC criticised the BSA for systematic failures after an investigation was launched into the watchdog’s handling of the case.
Mr Messenger asked the CMC to conduct an inquiry after angry customers and tradies made allegations that the BSA failed to investigate their complaints.
BSA general manager Ian Jennings said he accepted the findings of the report.
“(We) will implement all the recommendations — that process has already started,” Mr Jennings said.
As a result of the recommendations, the BSA will employ qualified accountants, publish specific guidelines about how to deal with anonymous grievances, and create written policies guiding how to investigate complaints.
It will make the changes before April 19 next year.
Member for Burnett Mr Messenger said he was disappointed that the investigation was not carried out by CMC staff rather than independent examiner.
“Considering the seriousness of the allegations, the CMC should have used their own investigators,” Mr Messenger said.
“But nonetheless, this is as close to damning as I’ve ever seen from a government report — it has thrown up some serious faults within the system.”
He planned to table the document in Parliament last night.
Minister for Public Works Robert Schwarten denied the report found the BSA was in the wrong.
“The CMC did not make an adverse finding against the BSA and it is wrong to say the BSA is culpable of any misconduct as alleged by Mr Messenger,” Mr Schwarten said.
“In fact, the CMC identified a number of administrative matters which may assist the BSA in dealing with clients.”
The failed company owed more than $1 million to 100 creditors, who are yet to see a cent.
Liquidator SV Partners told the NewsMail last week

Tradie to keep 12k payout

LIQUIDATORS have backed down and retracted their demand for a Bundaberg tradesman to return thousands of dollars he was paid by the collapsed builder Coral Coast Homes earlier this year.
Bricklayer Kevin Bragg was shocked to receive a bill for more than $12,000 in September this year, when liquidators SV Partners determined he should return the money.
Citing legislation from the Corporations Act, SV Partners wrote that Mr Bragg “was aware or should have been aware that the company was insolvent” when his payments were made from January to March this year — despite the fact it was still trading when the payments were made, and did not go into liquidation until June.
The liquidators supplied a history of transactions between the failed builder and Mr Bragg’s bricklaying business Brickfred, which suggested that Coral Coast Homes may have been struggling financially as early as September last year.
They demanded that the money be returned, as it gave Brickfred a preference over other creditors, who may still see nothing of the money they have lost.
But luckily for Mr Bragg, SV Partners has eased its stance, and scrapped the repayment after media attention to the issue.
“They called me and asked me to write a letter detailing everything that happened with Coral Coast Homes, and they might be able to arrange something,” Mr Bragg said.
Last week, he had another telephone call saying the matter had been dropped.
Mr Bragg said he was delighted to hear the news, but said he should never have been asked to repay the money, which he was awarded by the Commercial and Consumer Tribunal in March, after Coral Coast Homes failed to pay him for work done before September last year.
SV Partners director David Stimpson said his investigations concluded the company was insolvent in January.
“Our investigations as to whether it was trading insolvently prior to that date are continuing,” Mr Stimpson said.
He said he had passed on a report to Australian Securities and Investments Commission (ASIC), stating that the company was trading insolvent, and was working on another report with further information.
He said Mr Bragg’s defence against the liquidator’s claim of an “unfair preference payment” was valid, and he would not be pursued for the money.
“At this stage we have not identified any other unfair preferences,” Mr Stimpson said.

SV Partners bid to snatch tradie's cash !

A BUNDABERG tradie, who forced Coral Coast Homes to pay his bills when he took the building company to a tribunal, has been ordered by the company's liquidators to return the cash.

At first Kevin Bragg (pictured, right) thought a demand to hand back $12,000 was just a joke - but soon it became obvious that the letter from liquidator SV Partners was no laughing matter.
Mr Bragg, director of bricklaying company Brickfred, went to the Commercial and Consumer Tribunal in March to recover more than $12,000 in unpaid bills from Coral Coast Homes.
The ruling was made in the nick of time - Mr Bragg had received nearly all of his money back by the time the company went under in June, owing more than $1 million to about 100 creditors.
“I thought I was one of the lucky ones, that I got in just in time,” Mr Bragg said.
But that win turned sour when Coral Coast Homes liquidator SV Partners demanded all of the money back - saying Mr Bragg should never have been paid the cash he was owed in the first place.
“They're saying I should have known that (Coral Coast Homes) was insolvent, so I have to pay back the money,” Mr Bragg said.

Coral Coast Homes victim hurt again by latest demands to pay up!!

Rob Messenger MP
Member for Burnett  

(MEDIA RELEASE)

A local building business owner affected by the collapse of Coral Coast Homes has been told by the company’s newly appointed Liquidator ...... to return money which was previously awarded by a tribunal to the former Coral Coast Homes customer.

Member for Burnett Rob Messenger was contacted by Kevin Bragg, owner/Director of Bundaberg business ‘Brickfred Pty Ltd’, who received a letter from Coral Coast Homes liquidators, demanding that he pay $12,000.

“The Liquidators are now claiming that I should have known they (Coral Coast Homes) were trading insolvent, but had I have known that, why would I be wasting money with the business?” Mr Bragg said.

“We were sick of not being paid and forced go through court process and now liquidators turn around and say you don’t deserve that money - hand it back !?

“I’ve done everything by the book… I’m very disappointed to receive the letter like that.

“I’ve gone through every legal process and followed to the letter what the solicitor was saying and what the tribunal’s findings recommended,” he said.                                                                     

“Mr Bragg is obviously extremely disappointed to receive the liquidator’s letter and has approached me for help,” said Mr Messenger.

“I’ll be writing to the Attorney-General and Minister responsible for the BSA on behalf of Mr Bragg, asking that the government investigate the Liquidator’s letter of demand and advise if it is a reasonable and legal demand,” he said.

Mr Messenger is also concerned that there may be other victims of the Coral Coast Homes Crisis who have received a similar letter of demand from liquidators and is urging anyone in the same predicament as Mr Bragg to contact his office for assistance.

Media contact: Rob Messenger 0407 904 134

Coral Coast Homes collapse

You will no doubt remember the significant and lingering misery created in the Burnett and Bundaberg community after the recent collapse of Coral Coast Homes.

Hundreds of people, including tradesmen and homebuyers, have lost thousands of dollars each - millions of dollars in total. In some tragic cases, innocent people have lost their life savings and have been driven to the brink of financial, physical and mental ruin.

After hearing serious allegations at a public meeting that the government, through its department of Building Services Authority (BSA), allowed the company to continue trading with a valid building license even after the government was repeatedly warned by whistleblowers and customers for many months (almost a year) about alleged illegal and fraudulent behaviour, I wrote to the CMC on 1.6.09 requesting an investigation.

In the latest correspondence I have received from the CMC on 24.09.09, they confirm that in order to assess the concerns raised in my letter they are still waiting for a report to be produced by the BSA itself.

There is no indication from the CMC of a date when the BSA will supply that report. The CMC simply say they are expecting it shortly.

While I am pleased that the CMC is still taking these allegations seriously, this latest correspondence with the CMC however raises more concerns which I will be raising in a letter and in parliament with the Attorney-General and Premier.

My three major concerns are as follows:
1. Given the serious nature of the allegations and the amount of money lost by builders and homebuyers, is it appropriate for the CMC to allow the BSA for the last three and a half months to investigate allegations against their own senior officers?
2. I will be seeking a guarantee from the Premier that senior BSA officers, who were the subject of allegations of misconduct, were not involved in the production of the report which will be assessed by the CMC.
3. Will the report being made by the BSA and due to be passed onto the CMC shortly also be made available to myself or the people affected by the collapse of Coral Coast Homes?

It is my belief that the CMC do a great job, but is stretched to the limit and is deliberately under-resourced by this government which has a lot to cover up after 11 years of corruption and dysfunction.

More than 80% of the cases referred to the CMC are handed back for investigation to the government department from where the complaint first came!

This isn’t a healthy situation and certainly doesn’t encourage genuine whistleblowers to come forward with evidence of more corruption and misconduct, which suits this government perfectly.

In the case of the Coral Coast Homes crisis, I would have preferred that the CMC launch their own independent investigation using their special “Star Chamber” powers, which compel witnesses to truthfully answer their questions, rather than relying on a report by a less than independent Government source for their preliminary investigation.

The sooner we have a Royal Commission into corruption and cronyism in Queensland, the sooner justice will be delivered and the sooner victims like those caught up in the Coral Coast Home crisis will increase their chance of receiving fair compensation.

Rob Messenger MP

Building companys still owe $2.5m

TRADESPEOPLE and customers are still out of pocket for more than $2.5 million, after the collapse of two building companies in Bundaberg earlier this year.
SV Partners director David Stimpson said former Coral Coast Homes director John Biles had made little contact after he fled Bundaberg following the collapse of Coral Coast Homes and Steelsmart Homes in June - owing more than a million dollars.
“The director is still lying low - I don't believe he has gone bankrupt yet but it is still on the horizon,” he said.
Mr Stimpson said the company had very few assets, except for about $350,000 in Barter Trade dollars by Empire Trade Exchange.
“We have managed to get some money to a handful of creditors by way of EmpireTrade dollars, and we are hoping to make that option available to more people,” he said.
“The only problem is that is will cost creditors $500 to join EmpireTrade (to get the money).”
Mr Stimpson said the 100 creditors included the Tax Office, which was owed about $200,000.
“There's not a lot more to come out of it,” he said.
“John Biles has no assets, and no one has heard from him in a while.”
Mr Stimpson is also dealing with the liquidation of Bundaberg Master Homes, whose owner Grant Reedy also left town after the company failed in May.
The company owed more than $1.5m when it went into liquidation.
He said the company's only assets were two display homes, which were on the market.
“They can't seem to get the houses sold - they are not attracting buyers,” Mr Stimpson said.
“There's caveats all over the properties anyway, so there would be nothing for unsecured creditors.”
He said he was in contact with Mr Reedy and his wife, but appeared there was no more money to be recovered.
“I don't think there will be anything for creditors from Bundaberg Master Homes,” Mr Stimpson said.

BSA to act on owner's pleas for home help

LEO Chaplin has lost count of the letters he has sent to the Building Services Authority.
However, after months of campaigning, he has finally been offered help to get his house fixed.
Mr Chaplin's woes began shortly after he signed a contract with now-defunct building company Coral Coast Homes in October 2006.
He expected to be able to move in by September 2007, but instead countless delays and shoddy building work led him to cancel the contract in November last year.
When he approached the BSA for help, Mr Chaplin was told initially he was ineligible for insurance because he was six days over the two-year deadline for terminating his contract.
“We didn't even know there was a timeframe on it,” Mr Chaplin said.
“We had been in touch with the BSA regularly before that, and no one had ever mentioned it.”
He was facing a bill worth tens of thousands of dollars to fix the numerous flaws in his property - from loose bricks and an incorrectly placed septic system to missing insulation, screws and glue visible on shelving, and cupboard doors that did not sit flush.
Mr Chaplin described his experience as a nightmare.
However, he received the good news last week that the BSA will cover the repairs under its insurance scheme.
“It's very positive, but I won't really believe it until the work is done,” he said. “Why didn't they just do it in the first place?”
The Building Services Authority's deputy general manager, Col Wright, said the BSA has sent a letter to Mr Chaplin on September 14 advising him that he had an entitlement under the BSA's Home Warranty Insurance Scheme.
“As Mr Chaplin's representative made contact with the BSA within the two years of contracting with Coral Coast Homes, Mr Chaplin has an entitlement for the completion of his home - less any retention under the initial building contract,” Mr Wright said.
Mr Wright said the letter also asked Mr Chaplin for a meeting at his house with a BSA building inspector to assess the work necessary to complete the home under the original contract.