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!