Ex senator Bob Day takes swipe at Treasurer Tom Koutsantonis after ‘trail of destruction’ comment

EX-SENATOR Bob Day has hit back at Treasurer Tom Koutsantonis over claims the demise of his construction company had left a “trail of destruction”.

• How ex-senator Bob Day’s Home Australia building empire collapsed
• How Bob Day’s resignation will affect the Senate

OUTGOING Senator Bob Day has defended his actions and delivered a scathing swipe at Treasurer Tom Koutsantonis, as he speaks out for the first time since announcing his resignation.

Senator Day’s company Home Australia has gone into liquidation owing creditors at least $12.5 million, prompting him to announce on Monday he would vacate his Family First Senate seat.

Senator Day launched a broadside at Treasurer Tom Koutsantonis, who said the collapse of Home Australia had left a “trail of destruction” with about 200 homeowners left with unfinished homes.

Senator Day’s company Home Australia has gone into liquidation, prompting resignation from his Family First Senate seat.

“There is no ‘trail of destruction’,” Senator Day said. “The only trail of destruction in SA is Mr Koutsantonis’ government’s failed wind farm experiment.”

Customers only paid for work already done, Senator Day said, “so any work still to be done has not been paid for yet”.

“When events like this happen, taxpayers do not pay, the builders pay.”

Treasurer Tom Koutsantonis said this was an opportunity for Mr Day to show some remorse and contrition for his actions, but instead has shown he is in denial about the financial damage he has caused many innocent Australians who trusted him.

“Many of these families will now experience extensive delays to the completion of their homes and may find themselves out of pocket as rent and other costs pile up,” Mr Koutsantonis said.

“The trades and contractors who are owed substantial amounts of money by Mr Day deserve to be paid for their work,” he said.

“Instead of excuses and denials Mr Day should offer these people and businesses an apology and an explanation for how and why they were put in this terrible situation.”

In an emailed reply, Senator Day answered some questions put to him by The Advertiser about his company’s financial dealings and plans.

He wrote:

A REPORTED loss of $420,656 was “mostly depreciation” and a $2.67 million dividend paid to shareholders was “four years ago”.

A CLAIM that SA taxpayers could face a $5.6 million insurance bill was wrong because the builders pay the insurance.

OWNERS will have homes completed and all suppliers and tradespeople will be paid.

Liquidators have informed customers of Home Australia they have started a process to potentially sell the business or carve up its subsidiaries, including SA’s Homestead Homes.

“A successful sale may result in the buyer being willing to take over your building contract and complete construction of your home,” a circular, a copy of which was sent to The Advertiser, says.

Liquidators have also engaged locksmiths to change locks on unoccupied properties after reports that disgruntled tradespeople and suppliers had returned to the sites to take back items that had not been paid for.

A creditors meeting will be held in each state on or before November 4.

Family First MLC Robert Brokenshire says he has the experience to replace Senator Bob Day. Picture: Kelly Barnes

Three Family First members have come forward to replace Senator Day once he formally resigns.

His former chief of staff Rikki Lambert is one, lawyer Lucy Gichuhi is another, and state MLC Robert Brokenshire is a third. The race is expected to come down to Mr Lambert and Mr Brokenshire.

Senator Day declined to answer more questions, including when he intended to resign, who he would prefer to endorse him, and whether he had concerns his successor would change existing policies.

Family First SA Senate candidate, Rikki Lambert.

The trigger for the collapse of Home Australia was a promised US$20 million that failed to materialise.

A Philippine-based company called Goshen Capital Resources was set to save the company by buying a 75 per cent stake; but the document outlining the deal was “fraudulent”

and the money never appeared.

Home Australia’s most recent financial returns show the company lost $3.03m in the 2013-14 financial year and $420,656 the previous year.

Depreciation of property, plant and equipment was $243,948 and $362,019 respectively.

The company had turnover of $102.6 million in 2013-14 and $102.4 million the previous year.

The company’s auditors also included a so-called “going concern” statement, which said there was “the existence of a material uncertainty which may cast significant doubt about the consolidated entity’s ability to continue as a going concern and therefore the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of business’’.