As JM Kelly edged closer to collapse, the building industry watchdog was not told the truth about its financial position, a court has heard.
Glen Norris, The Courier-Mail Subscriber only|October 22, 2019 8:54am
MORE bombshells at the JM Kelly Group public examination in the Federal Court.
The court heard that Elizabeth Murphy, the financial controller of the failed group, allegedly fabricated the amount of debt owing to the group in figures given to the building watchdog. Barrister Craig Wilkins, acting for JM Kelly liquidator Derrick Vickers of PwC, told the Federal Court that the amount of trade debt owing to the group and provided to the Queensland Building and Construction Commission (QBCC) in 2017 was $1.7 million higher than figures given to the group’s accountant.
Mr Wilkins suggested to Ms Murphy that trade receivables, or debts owing from customers and others, had been inflated by adding in intercompany debt from the JM Kelly Group that could not be counted as assets.
The QBCC was at the time investigating whether the Rockhampton-based building company, which collapsed last year owing $30 million, had sufficient assets to keep its building licence.