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.”