Collapsed building company’s secret documents to be released
GYMPIE Regional Council is expected to release stat decs and other documents it received from Ri-Con Contractors Pty Ltd before the company’s devastating collapse in January, which left behind $5 million in unpaid debts.
Since the collapse, questions have continued to swirl over claims at least two of the councils Ri-Con was doing work for were told its subbies had been paid.
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At the time the company went bust, $1.1 million in bills was more than three months overdue, and a further $654,000 was a month late.
The documents provided to Gympie Regional Council will be made available to local sub-contractors owed money.
Ri-Con had become a preferred Gympie council contractor before it went into liquidation, winning tenders for the Curra Community Hall, Gympie Youth Precinct and Kilkivan Equestrian Centre worth more than $6 million.
Local sub-contractores and suppliers who won work on the projects are still owed thousands of dollars and are locked in a battle to recoup at least some of that.
A special meeting of the Gympie council on Monday is expected to instruct acting CEO Paul Gordon to help and coo-operate with those sub-contractors.
In January 2020, Sunshine Coast builder Ri-Con Contractors Pty Ltd went into liquidation
leaving debts to subcontractors and secured creditors.
Gympie subcontractor O’Brien Plumbing was among those impacted for work undertaken at the Kilkivan Equestrian Centre and the Gympie Youth Hub.
At its Ordinary Meeting on March 4, 2020, the council told CEO Bernard Smith to “cooperate fully with any official investigation relating to the collapse of Ricon, by providing all information and any documents that relate to the investigation and that staff be instructed by the CEO to assist and cooperate with official investigators at all times”.
The new Gympie council and acting CEO will hear on Monday that in their efforts to recoup what was owed them, O’Brien Plumbing had asked for:
1. Copies of the statutory declarations or any documents that Ri-Con submitted to
council in regard to payments
2. A copy of the insurance policy Ri-Con gave for both the Kilkivan Equestrian Centre and
The Gympie Youth Hub Projects
3. A copy of the tender document pack that was sent to Ri-Con Contractors for both the
Kilkivan Equestrian Centre and The Gympie Youth Hub Projects.
The acting CEO is expected to be authorised on Monday and “requested to assist and cooperate with subcontractors to make available those documents.
The council is aware there is a risk that Ri-Con Contractors Pty Ltd may take legal action for disclosing that information.