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.

Kit home customers fall through cracks ?

SUE and Steve Stanger face the miserable prospect of a second loan on their Avondale plot, after falling through the cracks between the Building Services Authority and the Office of Fair Trading.

Like Shane McMuhttp, who was arrested on Sunday after a confrontation with Public Works Minister Robert Schwarten, the Stangers paid Steelsmart Homes for a kit they have never received.

Mrs Stanger said the couple had no help from the Building Services Authority (BSA) because they were owner-builders, and they had little hope of assistance from the Office of Fair Trading.

“You've got to get a BSA licence to build the home - yet they won't help us,” Mrs Stanger said.

She said the BSA should have more powers to assist former Steelsmart Homes customers, particularly due to the company's close ties to Coral Coast Homes.

“We ordered bricks and window fittings through (Steelsmart Homes), and they used the same BSA number as Coral Coast Homes,” she said.

But Public Works Minister Mr Schwarten said that consumer protection legislation in Queensland was structured around consumers contracting with a licensed building contractor for both the supply and construction of their home.

“Whether or not the components of the home are in a kit form is of no concern to the consumer, provided they enter a contract with a licensed building contractor which incorporates the kit as part of the total contract price,” he said.

“It was for this reason that the BSA was able to assist the majority of clients who had contracts with Coral Coast Homes Pty Ltd for construction based on a kit.

“People who purchase a kit home with the intention of constructing it themselves as an owner-builder need to take the same precautions as any prudent consumer would take when making a substantial purchase.”

He said customers should consider paying only a small deposit, and putting money into trust, with the bulk of the purchase price paid when goods were received.

Coral Coast victim has Bligh's sympathy

AN angry exchange, which allegedly involved a jug, has potentially landed one man in hot water - but yesterday there was sympathy in Bundaberg from Queensland Premier Anna Bligh.
“Clearly no-one wants to be in a situation like this,” Ms Bligh said.
“This person was in very distressing circumstances.”
Mr McMullen lost $70,000 after he signed up to build a house with Coral Coast Homes and then the company collapsed earlier this year.

The pensioner was charged with a public nuisance offence and obstructing police following the alleged incident at Sunday's community cabinet.
Sporting an injury to his hand, Minister for Public Works Robert Schwarten fronted the media yesterday after a cabinet sitting in the Bundaberg Civic Centre.
When asked about the injury the minister replied: “Better my hand then my head.”
“You don't expect to go to a community cabinet and for that to happen.
“But I'm more concerned for that man.”
Yesterday Mr McMullen was resting at home.
The pensioner said he felt all avenues to getting his money back were exhausted.
“I'm totally exhausted and devastated by the whole thing,” Mr McMullen said.
“I'm on a disability pension and raising a child by myself.
“I'm renting and paying off my mortgage.”
Mr McMullen said that for the first time in his life, he had to take a food voucher so he could feed his family.
“It's good someone is there to help, but I've always given to people - this is the first time I've taken and I'm embarrassed that I had to go.”
During the press conference after the cabinet meeting in Bundaberg, Ms Bligh again addressed the concerns raised by more than a 100 unionists outside the community cabinet on Sunday.
Union members from multiple organisations including Queensland Teachers' Union, the Electrical Trades' Union, and CFMEU expressed outrage about the Bligh government decision to sell off state-owned assets.
The Premier repeated that scrapping the sale meant the government's building program would also have to go.
“We are absolutely determined to protect the building program and the jobs it creates,” she said.
Ms Bligh said she did not like the idea of the sale either.
“But there is really no alternative,” she said.

No security boost at Qld forums

Security will not be boosted at community cabinet meetings despite a man trying to hit a government minister with a water jug at a forum in Bundaberg, Queensland Premier Anna Bligh says.

A 48-year-old man was ejected on Sunday after throwing a jug of water at Public Works Minister Robert Schwarten during a one-on-one meeting with him at the Bundaberg North State High School.

After throwing the water, the man tried to hit the minister with the jug as Mr Schwarten raised his hands to defend himself against the blow.

The man was escorted outside by police, losing his shoes in the scuffle.

Mr Schwarten was on Monday nursing a bruised and swollen hand as he expressed his concern for the man.

He said the man had paid $70,000 up front for a kit home and lost the money when Coral Coast Homes went under.

But because he did not sign a building contract he was not covered under the Building Services Authority (BSA), Mr Schwarten said.

"He's really come along there yesterday expecting government to solve all of his problems and the government can't do that," the minister told reporters in Bundaberg on Monday.

He said the "dangerous" incident was not a nice one but he felt safe participating in future community cabinets.

"You don't expect to go to a community cabinet and for that to happen but I guess what it shows is that people get very distressed," he said.

"He was certainly very distressed and quite frankly he's more to be pitied than scorned in this circumstance.

"He's in desperate trouble and he took his frustrations out on me."

Mr Schwarten is not pressing charges relating to the assault but police have charged the man with public nuisance and obstructing police.

He will face Bundaberg Magistrates Court on September 18.

Ms Bligh said the "rare" incident would not change anything about the way community cabinets were run in the future, including security numbers.

She said there had been enough security at Sunday's meeting and she was committed to keeping the meetings as open as possible.

"I want people to feel that they can walk into a school hall and meet with any member of my government and my cabinet unimpeded by a strong police presence," she told reporters in Bundaberg.

"I don't think that's necessary."

Sunday's community cabinet, which gave residents outside of Brisbane the chance to meet one-on-one with government ministers and senior departmental officers, attracted the largest number of registered attendees and around 300 protesters.

Anger at Community Cabinet Visit

FRUSTRATION and anger spilled into the street yesterday as teachers and other union members took their protests straight to the top during Bundaberg's community cabinet.

Flanked by advisors and security, Premier Anna Bligh walked a gauntlet of more than 100 members from different unions to get into Bundaberg North State High School's hall.

About 300 protesters, irate over plans to sell off government assets and low teachers' pay, chanted and held up signs as Premier Anna Blighand her cabinet colleagues arrived.

Inside, a man used the public forum to criticise the Building Services Authority (BSA) for not helping him after he lost "everything" to a dodgy builder who promised to build his house.

"I voted for you. I'm sorry I did," he told Ms Bligh.

Afterwards, he met with Public Works Minister Robert Schwarten to discuss the matter one-on-one.

However, the man was escorted outside by police after he threw a jug of water at the minister and then tried to hit him with it.

Mr Schwarten put his hands out to defend himself as police officers pulled the man away.

The man lost his shoes in the scuffle.

The man arrested was Shane McMullen, a pensioner who lost everything following the collapse of Coral Coast Homes earlier this year.

Mr Schwarten is not pressing charges and said he felt sorry for Mr McMullen who was not covered under the BSA's powers due to the nature of the fraud.

It's understood Mr McMullen paid up front for a kit home but did not sign the appropriate contract that would have afforded him insurance under the BSA.

The 48-year-old man was charged with public nuisance and obstructing police and will face the Bundaberg Magistrates' Court on September 18, a police spokesman said.

Bundaberg Police Inspector Kevin Guteridge said that apart from one disturbance, the event ran safely and smoothly.

Premier Anna Bligh and her ministers covered a range of issues and made a number of announcements during her Bundaberg trip.

She also welcomed outpouring of community suggestions and opinions.

“We want to know what the next things are that you would like us to invest in,” she said.

Sunday's community cabinet, which gives residents outside of Brisbane the chance to meet one-on-one with government ministers and senior departmental officers, attracted the largest number of registered attendees.

Don't confuse us with broke building company

A stigma against builders on the Fraser Coast has seen the largest home builder in Queensland - Coral Homes - suffer.

Since 1990 Coral Homes has been building houses from Bundaberg to Sydney but that has not saved the company from the building industry fallout.

Fraser Coast residents have avoided the business since Coral Coast Homes went into liquidation at the start of June because they mistakenly believe the two companies are the same.

Coral Coast Homes - which had no affiliation with Coral Homes - went bust owing about $1 million to customers and tradespeople across the Wide Bay.

Coral Homes marketing manager Glenn Kennedy is urging people to do their research and believe the company will be in Hervey Bay for the long term.

“If people do their homework they will find out that Coral Homes is one of the most reputable and trusted companies in business.”

Mr Kennedy said the family-owned business was not simply Coral Coast Homes re-branded and was not a franchise.

He understood people were cynical about the industry and that it was a sensitive issue but said trustworthy builders were being affected.

Housing consultant Trevor Lollback is based at the company's Dundowran display home and says people are avoiding the place.

“People are just confused. It really, really has affected us something terrible.”

Not only has the Bundaberg based Coral Coast Homes gone bust this year, so too have a number of Queensland companies including Cavalier Homes Hervey Bay.

Cavalier Homes (J and J Harvey Constructions) became insolvent in May, owing more than $1.5 million to sub-contractors, suppliers and customers. More than 100 Fraser Coast businesses were on the list of creditors

BSA ignores John Biles bankruptcies

CHRIS Dalby spent hours researching before he signed up with Steelsmart Homes - yet he found out too late that director John Biles had two previous bankruptcies.

“I wouldn't have touched them with a 10 foot pole if I'd known,” Mr Dalby said.

Mr Dalby searched the Building Services Authority (BSA) and Australian Securities and Investments Commission (ASIC) websites before he signed his contract, but said his time was wasted because the information was not there.

“The BSA has been negligent because they either didn't check, or disregarded it,” he said.

Mr Biles went broke in 1987 and again in 1997, two years before BSA introduced regulations against people with previous multiple bankruptcies from holding licences.

“The BSA has the toughest anti-phoenix laws in the country, which means that anyone who has become bankrupt since 1 October 1999 faces lengthy and, if it happens a second time, lifetime bans,” BSA general manager Ian Jennings said.

“Since 1 October 1999, BSA's public register records any individual who becomes bankrupt and is banned from holding a licence. This is shown on BSA's public register for 10 years.”

The BSA failed to act on Mr Biles' two previous bankruptcies as they were before 1999, and Mr Biles was listed as a director on the Coral Coast Homes licence in 2005.

His individual licence was also reissued in 2008, and no warning was posted on either licence to alert potential customers.

“As part of the application process, applicants are required to legally declare whether or not they have ever been declared bankrupt, or been a director of failed company,” Mr Jennings said.

He said the BSA checks databases to monitor bankruptcies and liquidations.

Bundaberg Master Homes director Grant Reedy also had a previous bankruptcy before his company went into liquidation in May, owing more than $1.5 million.

Despite many customers publicly voicing their dissatisfaction with the system, Public Works Minister Robert Schwarten maintained that BSA's legislation was effective.

“There will always be a level of dissatisfaction, but regrettably there will always be people who do not get the outcome that they believe they should get,” Mr Schwarten said.

Private eye joins hunt for builder

THE search for Coral Coast Homes director John Biles has intensified, after a private investigator was engaged to track the failed builder down.

The investigator said he was looking for any information that may lead to locating Mr Biles for a Bundaberg-based client.

“I'm just after as much information about him, his family and his business, as I can get,” he said.

He said even the smallest scrap of information would be useful to him.

“Where they live, where he goes on holiday, and cars he drives,” he said.

Fraser Coast painter Ray King said he did not know who engaged the investigator, but he hoped Mr Biles was tracked down to face justice.

“I'm looking for him too,” Mr King said.

A private investigator has joined the hunt for Coral Coast Homes director John Biles.

“It's been a little bit quiet and as far as I know he's not been found,” painter Ray King said.

Mr King, who instigated legal proceedings against Mr Biles, said there had been talk about where Mr Biles was.

“I've heard all sorts of rumours - we did track him down to his son's place in Brisbane, but he's moved,” he said.

Coral Coast Homes went into liquidation at the beginning of June, owing about $1 million to customers and tradespeople who may have little hope of recovering their money if Mr Biles cannot be found.

Member for Burnett Rob Messenger said he had written to Police Minister Neil Roberts, asking why Mr Biles had not been investigated for fraud.

“I want to know why the police aren't out looking for him,” he said.

Yesterday in an estimates hearing, Fair Trade Minister Peter Lawlor denied claims the government knew about the problems at Coral Coast Homes 12 months before the company collapsed.

Creditor Denis Seth told the NewsMail he had recently given a statement to the Office of Fair Trading and he believed they were investigating.

BSA general manager Ian Jennings said the BSA had not been contacted by the private investigator in relation to Coral Coast Homes or Mr Biles.

To contact the investigator, telephone 0411 959 438 or email help@countermeasure.com.au.

Govt "didn't know of " Coral Coast Homes woes

The Queensland Government has rejected claims it knew about problems at Coral Coast Homes 12 months before the company collapsed.

Coral Coast Homes went into liquidation in early June owing about $1 million to about 100 customers.

The Member for Burnett, Rob Messenger, told Parliament in June that the Department of Fair Trade and Building Services Authority knew about the alleged misconduct of the director, John Biles, at least 12 months beforehand.

But Fair Trade Minister Peter Lawlor has told a budget estimates hearing that the complaints were made by customers to the Office of Fair Trading only days before the collapse of the company.

"I have been assured by the Commissioner for Fair Trading that according to their records that the Office of Fair Trade [had] not been aware of concerns about these companies' operations for 12 months," he said.

"Fair Trading has now received 11 written complaints concerning these companies with the first only having been received [on] the 1st of June 2009."

Hi,
The Trade and Builders Database (TABD) have been following the situation with Coral Coast Homes/John Biles.

As a result of the poor outcome of the situation we will be pro-actively compiling as much information on the situation. This will entail meeting with as many unsecured creditors and relevant parties as possible.

Specifically we will be adding information to the Trade and Builders Database. This information is available to all TABD members who use the database as a reference facility. Dodgy builders are defaulted for a minimum of 5 years. As this is a national database, all information gathered will help prevent persons such as John Biles trading anywhere in Australia.

Further more, I personally will be following up this situation and will be in the Wide Bay area from Monday 27th July.

If you have any information that could assist us with our inquiries feel free to contact me via the details below or alternatively call Hami Hikaiti (Director) on 0411 277 308.

Kind Regards,

Kieran Browne

Mobile 0406 257 257
Address PO BOX 932 Redcliffe, 4020
Email kieran@tabd.com.au

Waiting for BSA answers?

TWO weeks after a meeting with Building Services Authority and Office of Fair Trade officials about Coral Coast Homes, former customer David Kapp is still waiting for a call to discuss his insurance claim.

He said a representative from the Office of Fair Trading has agreed to meet him next week, but a discussion with BSA general manager Ian Jennings has still not been arranged.

“I haven't heard from the BSA since June 30, I'm still waiting,” Mr Kapp said.

Public Works Minister Robert Schwarten has come under fire from Member for Burnett Rob Messenger over his handling of complaints about the BSA.

In answer to a Question on Notice from Mr Messenger about the BSA's role, Mr Schwarten said it was “not appropriate” for him to comment on details of the company, or the BSA's investigation.

“The minister is trying to hide behind the excuse that, because I referred the actions of his BSA managers to the CMC for possible misconduct, therefore he doesn't have to and won't answer questions during estimates regarding the matter,” Mr Messenger said.

Schwarten makes excuses and runs scared!

Public Works Minister Rob Schwarten has shown in his reply to an Estimate’s “Dorothy Dicks” question from a government MP, that he is scared of answering questions about his involvement in the mismanagement and failure of the BSA to protect Burnett homeowners and tradespeople from a builder who owes millions of dollars to hundreds of innocent people, Member for Burnett Rob Messenger said today.

Schwarten, in an answer to a staged government ‘Question on Notice’ to begin the 2009 Estimates process, confirms at the end of a two and a half page personal attack and rant against Mr Messenger that:
“It is therefore not appropriate for me to comment regarding specific details of the company of the BSA’s investigation of the company”.

“The Minister is trying to hide behind the excuse that, because I referred the actions of his BSA managers to the CMC for possible misconduct, therefore he doesn’t have to and won’t answer questions during Estimates regarding the matter,” Mr Messenger said.

“Schwarten just created a record for political cowardice. This Estimates he gets the yellow pansy award as the government minister who is running scared and covering up the most…even before he even sits down and faces one estimates committee-hearing question,” he said.

Mr Messenger confirmed that Mr Schwarten hasn’t been referred to the CMC yet, meaning the Minister is quite free to explain his actions with regards to the failed Burnett builder, John Biles.

“During the Estimates process, the Minister needs to explain to the people of Queensland and the hundreds of innocent homes builders and subcontractors who have had money and property taken from them what he knew and when he knew it,” Mr Messenger said.

“Why did Schwarten and his department allow a builder to continue taking peoples money even though his officers have told public meetings that as early as 2002 and for each year after on average, there were five complaints against the Burnett builder?

“Schwarten needs to tell Estimates Committee “A” how many complaints about John Biles and his associated companies over the years have been made by angry and desperate customers to his department and BSA officers and how many times he allowed the builders license to be renewed.

“Schwarten’s own BSA Manager Ian Jennings has stated to creditors of John Biles that the Public Works department knew at least 15 months ago (Apr 08) that Mr Biles and his associated companies were in serious financial trouble.

“Why was Schwarten dopey enough to accept a report made up by Mr Biles’ own accountant as proof that the company wasn’t in financial difficulties and why did Schwarten then allow a renewal of Biles' license?

“And given the fact that that report was obviously wrong, why hasn’t Schwarten ordered legal action to be taken against Biles’ accountant?,” he asked.

Mr Messenger said the Minister can also explain why his department has continually failed to make payments to subcontractors and homebuyers who, under the BSA insurance scheme’s terms and conditions, were entitled to re-imbursement.

“Why is it only after the matter is raised in parliament, in the press and reported to the CMC that Schwarten and his BSA officers have been forced to act fairly, properly investigate and honour government insurance policies of the hundreds of people who have had money and property taken from them?” Mr Messenger asked.

BSA mail misses

THE Building Services Authority has sent dozens of letters to the director of collapsed company Coral Coast Homes - but John Biles has never opened any of them.

The correspondence has ended up in the letterbox of tradesman Chris Tribuil, who lives in a house he bought from Mr Biles more than a year ago.

"In the past two days, we've received 14 letters from the BSA for Coral Coast Homes," Mr Tribuil said.

"We've been telling them for 14 months that this is not his address and still they keep coming."

Mr Tribuil said he was concerned that former clients of the company may be left out of pocket by the BSA's costly mistake.

"It shows the BSA is not doing what they should, they are doing no service to clients," he said.

"It just re-affirms that the BSA is a toothless tiger."

BSA general manager Ian Jennings said the address in question was given to the BSA by the director of Coral Coast Homes Pty Ltd, and no change of address had been notified by Mr Biles.

He said the BSA would no longer send mail to Mr Tribuil's address.

"In certain circumstances, BSA must send mail to all known addresses of people we are investigating," Mr Jennings said.

He said despite numerous attempts, the BSA had not been able to contact the company's director since May, although investigations into his actions were continuing.

"It is a requirement under legislation that company directors must notify the BSA of a change of address, and verify the change with proof, such as a current rates notice," he said.

Mr Jennings said the mis-directed mail would not impact on any customer insurance claims, with 15 claims received and three approved for insurance pay-outs.

"All claims are progressing well and the BSA anticipates total claims to be approximately $1.5 million."

He said the investigation into the company's accountant was ongoing and would take considerable time.

Minister takes Action

PETER Thompson has seen a ray of hope that his Rosedale home may yet be completed, after Minister for Public Works Robert Schwarten promised he would be covered by the Building Services Authority's insurance scheme.

Mr Thompson's house was left unfinished for more than two years, and he feared it would never be completed after the collapse of Coral Coast Homes and Steelsmart Products.

But Mr Schwarten told Mr Thompson last week that he has taken a special interest in his case, and has promised a payout of more than $167,000 to help him finish the house.

“(Mr Schwarten) told me he will oversee the case himself,” Mr Thompson said.

Although a meeting with Mr Schwarten yesterday was cancelled at the last minute, Mr Thompson said he hoped the insurance would come through within weeks.

“I'll wait until I see it in writing, but I'd like to think we could be living there by Christmas,” he said.

“We have the ray of hope, we're just waiting for it to turn into a big burst of sunshine and that will happen on the day we can move our furniture in.”

Mr Schwarten said he had spoken with BSA general manager Ian Jennings about the couple's case.

“It seemed a particularly sad case where the couple had shelled out money when they did not need to and as a result have an unfinished home,” Mr Schwarten said.

“The couple are receiving top priority and are entitled to access the BSA Home Warranty Insurance Scheme.”

He apologised for being unable to attend the meeting, and said he had been unable to rearrange his diary.

“I spoke to the couple and apologised for the misunderstanding and assured them that Mr Jennings would be visiting them to resolve the issue promptly,” Mr Schwarten said.

“Mr Jennings has advised me that he will meet with the couple soon and then update me on their situation along with that of other affected home owners involved with Coral Coast Homes.”

Mr Jennings said yesterday that 15 claims have been received from home owners who had contracted with Coral Coast Homes, with three approved for insurance and the remainder under consideration.

On Friday, Mr Jennings and the BSA insurance manager will travel to Bundaberg to meet with more home owners affected by the collapse of Coral Coast Homes, to discuss their claims.

Coral Coast Homes victims snap

SHANE McMullen is at his wit's end after Building Services Authority (BSA) officials gave little hope he could recover money lost when Coral Coast Homes and Steelsmart Home collapsed.

“I feel like I've failed as a father - I'm supposed to put a roof over my children's heads, and I can't,” Mr McMullen said.

“The BSA and the Office of Fair Trading both say there is nothing they can do.”

BSA general manager Ian Jennings admitted he would not have built a house with Coral Coast Homes from “about March or April”.

He made the startling confession at Tuesday night's meeting with Office of Fair Trading regional manager Peter Nell and customers of the collapsed builder - sparking angry jeers from the crowd, with some people handing over money to the company as late as May.

BSA started investigations in April last year, but Mr Jennings admitted suspicion the business supplied inaccurate information.

“I did not believe every word that John Biles said,” Mr Jennings said.

“Why didn't BSA act sooner? It's a tightrope we walk.”

The company's licence was suspended on May 25, and finally cancelled on June 24, citing “Failure to satisfy financial requirements”.

Mr Biles is currently excluded from holding a contractor's licence or being an influential person in a building company for five years.

But Coral Coast Homes and Steelsmart customer Robert Thompson said it was not enough.

“Next week, it will be two years since I had the floor laid - and I'm still waiting for the rest of the house,” Mr Thompson said.

He said it was “ridiculous” that Mr Biles could return to the industry within such a short timeframe.

Member for Burnett Rob Messenger said he was “very disappointed” with the response of the BSA and the Office of Fair Trading.

He said customers were so frustrated they had approached police in hope of a prosecution for fraud.

“I will be asking Police Minister Neil Roberts why police can't investigate whether fraud was committed,” Mr Messenger said.

Anger over failure

FRUSTRATED home-builders met Building Services Authority (BSA) officials last night at a meeting to discuss the shutdown of Coral Coast Homes and Steelsmart Homes.

The companies were directed by John Biles until they both went into liquidation earlier this month.

The BSA came under fire over its handling of the events, with home owners and tradespeople claiming the BSA failed to act despite clear warning signs the companies were in financial strife.

BSA general manager Ian Jennings said BSA has received 14 claims from home owners who had contracted with Coral Coast Homes.

“Two of these claims have been approved and the remainder are being assessed under the Queensland Home Warranty Scheme,” Mr Jennings said.

“BSA has met with 12 of the affected home owners and plans to meet with the remaining two home owners at the first available opportunity.”

Burnett building crisis victims suffer

BSA’s Minister Robert Schwarten is playing a despicable and disgusting political game and has been caught out lying and trying to cover up the facts while the victims of the collapse of Coral Coast Homes and SSM Homes Steel Kit homes suffer, Member for Burnett Rob Messenger said today.

Mr Messenger’s comments follow a Media Statement from the Minister which accuses the Member for Burnett of having “a political agenda” and “scoring political points” from the people affected by the fiasco and “hijacking” tonight’s planned meeting from the Member for Bundaberg.

“Instead of trying to deliberately confuse the issue with political spin and behave like a two-year-old who is trying to play off the Member for Bundaberg Jack Dempsey against myself, Schwarten needs to tell the people of Burnett what he is going to do to recover the money and property which has been stolen from the victims of the Coral Coast Homes Crisis,” Mr Messenger said.

“The Minister also needs to stop the lies and cover-up and come clean on his actions in this affair.

“According to BSA’s General Manager Ian Jennings during a recent liquidators meeting where myself and 20 or more creditors attended, Schwarten’s department has known about the serious complaints regarding Coral Coast Homes and John Biles’ for more than 1 year (APR 08),” he said.

Mr Messenger said the questions that the Bligh Government and Schwarten have failed to answer include:
1) When did Schwarten first know about the complaints about Coral Coast Homes and SSM products?

2) Was it the case, as BSA’s General Manager has recently stated during last weeks Coral Coast Home’s liquidators meeting, that the department were aware at least 15 months ago in April 2008 of complaints against John Biles and his companies, or was it earlier?

3) If Mr Jenkins is correct, why did Schwarten fail to act for the last 15 months to protect Burnett/Bundaberg homebuilders and Steel Kit home buyers?

4) How many Burnett and Bundaberg families would have been saved from losing money and property, if Schwarten and his department would have taken the complaints seriously and acted on the cries of help from Burnett and Bundaberg home builders and Coral Coast Homes company insiders/Whistleblowers in the first place?

5) Why has Schwarten ordered a public officer, (Ian Jennings) a senior head of Schwarton's department, who has been referred to the CMC for possible misconduct, to chair a meeting, which will discuss that very own officer’s alleged misconduct?

6) Why has Schwarten failed to provide a senior officer from his department who hasn't been referred to the CMC or isn't the subject of a vote of "No Confidence", to chair tonight's meeting of the victims of Coral Coast homes?

7) Why has Schwarten failed to acknowledge and offer a plan to fix the obvious systemic flaws in the Queensland building industry, which have been discovered during the Coral Coast Building Crisis? i.e.
a) Acceptance by Government of self auditing by builders
b) Failure to insist on the use of trust accounts for transactions.
c) Failure of Kit Home sales to be covered by BSA insurance and legislation.

BSA Meeting tonight !!

Just a reminder about tonight's meeting, from 6.30pm, at the Bert Hinkler Motor Inn (instead of Brothers Sports Club). Corner Takalvan and Warrell Street

All sub-contractors and home owners with concerns regarding the shut-down of Bundaberg Master Home's Steelsmart Homes and Coral Coast Homes are welcome to attend.

PS: This would be a good time to get stuck into the BSA

Messenger shoots himself and LNP mate in the foot?

Written by Robert Schwarten:

A meeting planned in Bundaberg tomorrow night by Member for Bundaberg Jack Dempsey has been hi-jacked by his LNP colleague, the Member for Burnett, Public Works Minister Robert Schwarten said today.

Mr Schwarten said Mr Messenger had done the equivalent of shooting himself in the foot and shooting Mr Dempsey in the foot at the same time.

"Mr Messenger has made a complaint to the Crime and Misconduct Commission regarding Building Services Authority leadership and, as such, it is entirely inappropriate for the BSA General Manager, Mr Ian Jennings to attend such a meeting," Mr Schwarten said.

"I have no problem with Mr Dempsey organising a meeting of his constituents, but from the correspondence I have received from Mr Messenger it seems to me that he has pushed Mr Dempsey out of the equation.

"Aside from the political rudeness to his own Liberal National Party mate, this does nothing to help Mr Dempsey's, or for that matter, Mr Messenger's consti tuents."

Mr Schwarten said that he was more than happy to have Mr Jennings attend a meeting of concerned sub-contractors or other individuals who had been affected by the recent failure of building companies in the Bundaberg area.

"It is clear that Mr Messenger has a political agenda. He is not interested in helping these people, he is merely interested in scoring political points from them."

Mr Schwarten said he was advised that the BSA had assisted nine customers of failed builder Coral Coast Homes, and Mr Jennings or his Deputy had been to Bundaberg on three occasions.

"I am more than happy for Mr Jennings to attend a meeting with Mr Dempsey and his constituents but given there is a CMC investigation of BSA leadership instigated by Mr Messenger, it is pointless having Mr Jennings there while this matter is under investigation.

"Mr Messenger has made it clear that he has no confidence in the leadership of the BSA and I am truly amaze d that he would want the BSA General Manager to be at a meeting.

"I am advised that the BSA has reserved a room at Bert Hinkler Motor Inn, Bundaberg, for a meeting with Mr Dempsey's constituents at 6:30pm tomorrow night, which will be paid for by the BSA. Mr Jennings will be present and will chair the meeting.

"This is not Mr Messenger's meeting and if he wishes to book and pay for another venue then so be it. That's a matter for him.

"I received today an invitation from Mr Messenger to attend a meeting tomorrow night and I have declined due to previous commitments, which I will not be cancelling simply because Mr Messenger clicks his fingers.

"I am currently considering my forward diary commitments in light of a letter from Mr Messenger which came to hand on 19 June.

"All members know my door is always open and not once has Mr Messenger come knocking. Not once has Mr Messenger ever made an appointment to see me to discuss this issue w hile the Parliament is sitting.

"I have made it clear to the BSA that it is to help however it can in these trying circumstances and I believe the BSA is doing just that.

"But I won't tolerate a Member of Parliament bullying public servants for their own political ends," Mr Schwarten said.

'Nothing recoverable' from Coral Coast Homes

Creditors of liquidated company Coral Coast Homes have been told the company has no assets or funds to reimburse customers and suppliers.

A creditors' meeting was held yesterday in Bundaberg, in south-east Queensland, and a committee of creditors was established.

The company went into liquidation earlier this month owing about $1 million to about 100 creditors from across the region.

The company's director, John Biles, did not attend the first creditors' meeting yesterday.

SV Partners' liquidator David Stimpson says investigations will continue into Mr Biles' finances.

"It is not uncommon to see a building company and other companies in other industries for that matter with a $1 million plus in debt," he said.

"Usually there are assets though - in this case the fact that there is really nothing recoverable is a little bit unusual.

"In my discussion with [Mr Biles], he indicated initially that he wanted to cooperate as much as possible - that he felt badly about where the company had ended up and felt badly about the losses people have incurred.

"In saying that he's told me quite clearly that he has no resources to do anything and he had no option but to put the company into liquidation."

The general manager of the Building Service Authority (BSA), Chris Boyle, who attended yesterday's meeting, says the complaints were investigated.

BSA spokesman Ian Jennings says the authority is now investigating whether financial information provided by the company in April 2008, which showed it was meeting its financial commitments, was misleading.

Meanwhile, customers of Steel Smart Homes, another company directed by Mr Biles, are not likely to see any compensation either.

The company has stopped trading and gone into administration but is yet to be liquidated.

The BSA says the company was not registered with the authority as a licensed builder.

Chris Dalby, who has purchased a $30,000 kit home, says he has lost a lot of savings.

"We've just got to purchase what wasn't supplied all over again, which means paying for it again twice," he said.

"That hurts, I've got to tell you."

Painter sees red over Coral Coast Homes

NIKENBAH painter Ray King knows he's one of the lucky ones but that has not put him off the scent.

He still wants to track down the elusive John Biles, director of troubled building company Coral Coast Homes.

A warrant has been issued for Mr Biles' arrest after he failed to attend an enforcement hearing at Bundaberg Court house to provide documentation on the company's financial matters.

Mr King, who feels fortunate to be owed only $1400 by Mr Biles, is not convinced by rumours Mr Biles is hiding out in Hervey Bay, believing Brisbane is more likely.

“I want to know where he is so he can be pinned down. I wanted to do a 'wanted' poster to put it on the internet but I don't have a photo of him.

“If I knew where he was, I could call the bailiffs and have him picked up in half an hour.”

Mr King realised Mr Biles was “not crash hot” when his Fraser Coast Painting business was contracted to work on a house in Bargara.

He contacted the BSA and took Mr Biles to adjudication.

“I got a partial cheque (for $6700) out of him about a week before they closed their doors.

“I was one of the first to pin him down. The BSA made a judgment and stood there and got him to cough it up.

“I'm luckier than some because I got a cheque before it got ugly.”

Coral Coast Homes went into liquidation at the beginning of the month, owing about $1 million to customers and tradespeople throughout the Wide Bay who may have little hope of recovering their cash. The receivers were to hold a meeting in Bundaberg yesterday.

Mr King hopes no one else will lose out financially as he has.

“My interest is that I want to make sure he doesn't start up another business.”

He has also heard rumours during the past week that three Hervey Bay builders are in financial trouble but does not know the identity of any of them.

“In this industry you look to do the job and usually have to fight to get paid. Now you've got to take a bit of a punt on who's got money and who has not.”

Rob Messenger’s Private Members Speech – Coral Coast Homes

Mr Speaker,

Officers and senior management of the Department of Fair Trade and the Building Services for at least 12 months, possibly longer, have either by gross negligence, or by deliberate misconduct, allowed a conman, John Biles, director of a number of companies (Coral Coast Homes, SSM Products Pty Ltd, trading as Steelsmart Building Systems) to operate unchecked in the Wide Bay Burnett.

At a public meeting on Thursday 11.6.09, 37 people shared experiences, all which had 2 common themes:

1) John Biles has fraudulently and illegally taken money from and ruined the lives of many of my constituents, residents and workers.

2) This Government through its departments of Fair trade and the BSA, even thought they were warned many times over at least the last year, failed to act to protect pensioners, families and retirees from this unscrupulous and heartless conman.

Today, after receiving many written and oral statements from victims …
I am referring the actions of public officials, including the BSA and others to the CMC for investigation.

( Table letter to the CMC )

I also table the letters of complaints from 11 customers and or contractors who have had dealings with the BSA, department of Fair Trading and Mr Biles.

This government, its ministers and public officials must be prepared to listen compassionately and act immediately to help these people recover their money and / or complete building their homes.

This Government must not attempt a cover up of the departmental mismanagement and or misconduct which allowed this sorry and avoidable situation to develop.

Messenger refers allegations to CMC over Coral Coast Homes crisis

In state Parliament today, Member for Burnett Rob Messenger confirmed that he is referring the actions of public officials, including the BSA, to the CMC for investigation over the handling of the Coral Coast Homes fiasco.

Mr Messenger told parliament that officers and senior management of the Department of Fair Trading and the Building Services Authority have for the past 12 months or possibly longer, either by gross negligence or by deliberate misconduct, allowed a conman, John Biles, to operate unchecked in the Wide Bay Burnett.

“This Government, through its departments of Fair Trade and the BSA, even though they were warned many times over at least the last year, failed to act to protect pensioners, families and retirees from this unscrupulous and heartless conman,” Mr Messenger said.

“John Biles has fraudulently and illegally taken money from and ruined the lives of many of my constituents, residents and workers,” he said.

Mr Messenger called on the government to assist the people who have been affected by the collapse of Coral Coast Homes and Mr Biles’ associated companies.

“This government, its ministers and public officials must be prepared to listen compassionately and act immediately to help these people recover their money and or complete building their homes,” Mr Messenger said.

“This government must not attempt a cover-up of the departmental mismanagement and or misconduct which allowed this sorry and avoidable situation to develop,” he said.

No faith in BSA!

CUSTOMERS and tradespeople affected by the collapse of Coral Coast Homes and Steelsmart Homes gave a vote of no confidence in the Building Services Authority at a meeting on Thursday night.

Emotions ran high at the meeting, when about 45 people met with Member for Burnett Rob Messenger to air their grievances.

“We are calling for an independent investigation and legal assistance from the government so that people can pursue civil action,” Mr Messenger said.

“We plan to hold a public meeting and invite the Minister (for Public Works Robert Schwarten) and senior department officials.”

Meanwhile, a trailer full of office furniture was removed from the Bourbong Street offices of the company yesterday as liquidators moved in to count its assets.

Arrest warrant issued for Biles

“HE'S gone from a legitimate builder to a wanted man in three months.”

That is Fraser Coast painter Ray King's assessment of former Coral Coast Homes director John Biles, after he failed to show up at a court date yesterday morning.

A warrant was issued for Mr Biles' arrest after he did not attend an enforcement hearing to provide documents relating to the financial matters of Coral Coast Homes.

He allegedly owed Mr King thousands of dollars for outstanding bills and court costs.

A group of Coral Coast Homes creditors were left waiting at the Bundaberg Court House yesterday, after they appeared to face up to the director of the company they are alleging has ripped them off.

“Who knows where he is,” Mr King said.

It was all guesswork, but rumours spread thick and fast among the failed company's 100 creditors, with some claiming he was in Brisbane or Hervey Bay.

“I heard he may have left the country,” creditor Denis Seth said.

“But I think he is probably in Brisbane.”

Mr Seth had a contract with Coral Coast Homes to build a kit home he bought from Steelsmart Homes, which had Mr Biles as a director until it was wound up recently.

“All I have is a floor, and even that will need to be rebuilt,” Mr Seth said.

Another kit-home owner Shane McMullen was present, in hope he would get some answers about what would happen with his house.

Roofer Simon Kaplan said he was also owed money after completing work for Coral Coast Homes earlier this year.

Coral Coast Homes went into liquidation late last week, owing about $1 million to customers and tradespeople who may have little hope of recovering their money.

Coral Coast Homes owes $1m

THE liquidator of Coral Coast Homes has warned that the cupboard is bare for customers and tradespeople, with the company's debts of up to $1 million - and no assets.

“The director (John Biles) is already talking about bankruptcy,” SV Partners director David Stimpson said.

Mr Stimpson said the company had 15 projects underway, which were unable to be completed.

Fifteen home-owners and scores of tradies, contractors and suppliers are among the 100 creditors who are unlikely to see a cent.

The company owes $200,000 to associated businesss SSM Products - which traded as Steelsmart Homes and was directed by Mr Biles.

Building Services Authority general manager Ian Jennings said the rights of homeowners under the BSA's Home Warranty Insurance Scheme would not be affected, as it was a licensed company at the time it went into liquidation.

But those who bought kit homes through Steelsmart Homes may be left to recover their money through the courts.

“The Office of Fair Trading does not have the legislative power to assist in getting your money back if a company has become insolvent, however it can investigate if the business has acted illegally,” a spokeswoman said.

“It is illegal for a business to accept payment... if the business has no intention to supply the goods or services or continues to trade while insolvent.”

A creditors meeting has been scheduled for 11am on June 22 at the Sugar Country Inn.

Creditors circle after Coral Coast Homes collapse

A creditors meeting will be held in Bundaberg later this month following the collapse of the building company Coral Coast Homes.

The liquidator, SV Partners, says the company has debts of about $1 million and no assets.

Among the 100 creditors are 15 home owners, as well as local subcontractors and suppliers.

The creditors meeting has been scheduled for June 22.

Coral Coast Homes collapses

DAVID Kapp still faces an uncertain future after it was confirmed yesterday that Coral Coast Homes has gone into administration.

“It's going to be an awful game of waiting,” former customer Mr Kapp said.

“We don't know whether we can solve the problems with our house, and there's not much we can do about it.”

The company's problems first came to light last month, after a string of complaints about unfinished or substandard work, and unpaid tradespeople.

Last month, the Building Services Authority suspended the company's licence, amid speculation that the company was in financial strife.

The rumours were confirmed on Thursday when Brisbane-based SV Partners were appointed as external administrators - the same company dealt with the collapse of Bundaberg Master Homes in February.

Master Homes customers were left facing a struggle to get their homes finished after the builder went into liquidation, with many left to find new contractors to finish the work.

The Building Services Authority (BSA) is liaising with affected consumers of Coral Coast Homes to assess any entitlements they may have under the Queensland Home Warranty Scheme.

“Six claims have been received by BSA since the suspension of the licence of Coral Coast Homes Pty Ltd,” BSA general manager Ian Jennings said.

“Anyone else affected by the suspension of the licence of Coral Coast Homes Pty Ltd should contact BSA on 1300 BSA BSA (1300 272 272).”

Customers of Steelsmart Homes, which was also headed by Coral Coast Homes director John Biles, may also be left out of pocket with at least three people claiming their kit homes have not been delivered.

SSM Products Pty Ltd, trading as Steelsmart Homes, is being wound up after complaints by creditors.

“To date, BSA has received two complaints about Steelsmart Homes Pty Ltd, but both complaints were in regard to the supply of a kit home,” Mr Jennings said.

He said Steelsmart Homes is a “supply only” company, and as such, is not regulated by the BSA.

SV Partners did not return telephone calls to the NewsMail yesterday, and Mr Biles could not be reached for comment.

There will be a meeting for tradespeople, customers and owner-builders who have had dealings with Coral Coast Homes and Steelsmart, at 7pm on June 11, upstairs at the Bundaberg Neighbourhood Centre on Targo Street.

D Day 11th June ?

Well not much has happened in the last week, office is still closed, big john was still hiding under a rock somewhere? And little john who knows? So unless something happens in the next few days? The next major event is 11th June 2009 where Big john has to show himself at the Bundy Court House at 10am to explain why he has not paid the judgment against him and also to present his financial paperwork of what he has got? Could be interesting? Expect a large turnout, But you may ask what happens if Big john doesn’t show up, well I have been told that a Arrest warrant will be issued for him! It will cost $55.00 bucks but I think there will be a lot of contributors willing to throw a few dollars in the tin can to see this happen! The media footage of this would be priceless?

But the day is not over yet, everyone should come to this meeting arranged at 7pm,
“
There will be a meeting for tradespeople, customers and owner-builders who have had dealings with Coral Coast Homes and Steelsmart, at 7pm on June 11, upstairs at the Bundaberg Neighbourhood Centre (111 Targo Street). All welcome. Telephone Rob Messenger’s office on 4159 1988 for more details.
“
So there you have it, Remember 11th June next Thursday be there!

Steel Smart Homes Details?

Interesting who's name is on this?

Whois Record

Domain Name: steelsmarthomes.com.au
Registrar ID: Domain Directors
Registrar Name: Domain Directors
Status: ok

Registrant: SSM Products Pty Ltd
Registrant ID: ABN 90111490530
Eligibility Type: Company

Registrant Contact ID: IN-7157590105
Registrant Contact Name: John Nairn
Registrant Contact Email: Visit whois.ausregistry.com.au for Web based WhoIs

Tech Contact ID: IN-7157591402
Tech Contact Name: John Nairn
Tech Contact Email: Visit whois.ausregistry.com.au for Web based WhoIs

Name Server: ns3.instradns.com
Name Server: ns1.instradns.com
Name Server: ns2.instradns.com

Kit home buyers fear they will never see their homes?

Todays News Mail Story:

SEVERAL customers have come forward with complaints that they have not received kit homes bought from Steelsmart Homes, a company linked with troubled building company Coral Coast Homes.

SSM Products Pty Ltd, which trades as Steelsmart Homes, was being wound up yesterday after the builders licence for Coral Coast Homes director John Biles was cancelled on Monday.

Steelsmart Homes customers now face an anxious wait to hear if they would receive their kits.

Rosedale couple Peter Thompson and Claudia Richardson say they are living in a shack with no running water, next to their unfinished home, nearly two years after signing a contract with Coral Coast Homes.

“We still don't have a roof, which had been promised to us since March 13,” Mr Thompson said.

He said he paid in advance for the kit itself, and for the building to be completed to lock-up stage, after their previous home was destroyed in a fire.

“We were underinsured, so we've put every last bit into building this place,” Mr Thompson said.

He said volunteers had helped piece together parts of the home after a lengthy wait for the company's builders to get to work.

“Steve Sansom and his family came up, and without them, we wouldn't even have the plumbing,” Mr Thompson said.

“The kids say, 'we're never going to live in that house, it will never be finished'.”

Pensioner Shane McMullen said he has been left paying a mortgage on the frame of a house, after the rest of the kit was not delivered by Steelsmart Homes.

The kit home was meant to be delivered to his land in Apple Tree Creek by the second week in January.

But to date, only the frame has been received, and the single father is living with his teenage daughter in rented accommodation.

“My insurance company says I have no claim because I haven't received the kit, and the BSA say they do not cover kit homes - what do I do?” Mr McMullen said.

Representatives from SV Partners, who are receivers for Bundaberg Master Homes, were reportedly at the joint office of Coral Coast Homes and Steelsmart Homes yesterday.

But Building Services Authority general manager Ian Jennings denied the company had gone into administration.

“The Building Services Authority understands that no action has been taken to appoint administrators or liquidators to Coral Coast Homes Pty Ltd,” Mr Jennings said.

The Office of Fair Trading has urged customers who have concerns about Steelsmart Homes to telephone them on 13 13 04.

Steelsmart Homes could not be reached for comment yesterday.