Claims of embezzlement in Stirling Homes collapse

ALLEGATIONS of embezzlement and insolvent trading have been flagged as big reasons behind the collapse of Gympie builders Stirling Homes, which went under owing up to $6million to more than 130 creditors.

Liquidator reports lodged with the Australian Securities and Investments Commission reveal Stirling Investments Qld and PRB Construction, each run by director Peter Ross Bazzan, had significant financial issues long before they were wound up last October.

Liquidator Gavin Moss said Stirling Investments may have been trading insolvent as early as June 30, 2016, and PRB Construction the year before that.

He cites embezzlement of funds, staffing issues and poor business management among the reasons given by Mr Bazzan for the companies' failure.

Mr Moss said PRB may have also been affected by high cash use and limited trading profits after expenses, and failure to remit tax and superannuation liabilities to the tax office.

Stirling Investments had the same faults, he said, in addition to poor account control and record keeping, and the suspension of the company's building licence.

The PRB report identifies more than $1.1million in payments from the company "which appear to have been incurred for the benefit of the director's former spouse, Ms Karen Michelle Bazzan" and/or her associated businesses from August 29, 2017 to September 2018".