Evicted Wirrina marina operator overcharged boaties $1.759 million, forensic accountant Hugh McPharlin finds
A forensic accountant’s court-ordered review of an embattled marina operator accounts has found boaties were overcharged for years at the State Government-owned facility.
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A former marina operator, sued for allegedly misappropriating lease fees, overcharged berthowners nearly $1.8 million over four years, a long-running District Court saga has heard.
A court-appointed forensic accountant has determined that New Wave Aerospace, which in April was evicted from managing Wirrina Cove’s Marina St Vincent, claimed $3.194 million from boaties – or $1.759 million more than the $1.435 million it was entitled to recover for running costs of the State Government-owned marina between 2015 and 2019.
Accountant Hugh McPharlin had been charged with reviewing marina expenses to assist Judge Patrick O’Sullivan in finalising judgment in a long-running civil case brought by 75 berthowners against NWA and its sole director Stephen Marks.
The boaties accuse NWA of potentially misappropriating hundreds of thousands of dollars in berth fees and failing to carry out maintenance and repairs of the Fleurieu Peninsula marina in breach of the underleases.
Judge O’Sullivan ruled in February that NWA had used boaties’ fees to fund related companies and failed to maintain the Wirrina Cove marina. But he ordered the plaintiffs pay Mr McPharlin to review accounts a second time – at a $55,000 fee – before he hands down a final judgment in the case.
The Advertiser has been told that the berthowners, who represent about a third of leaseholders, will seek damages of about $600,000 representing their portion of the $1.75 million in excess charges.
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Mr Marks told Mr O’Sullivan on Friday that he would be challenging Mr McPharlin’s findings and that he had hired an expert and QC to assist his case.
A further hearing on the matter has been listed for July 31. Mr Marks has been given until July 17 to provide written submissions outlining why he believes Mr McPharlin’s findings should not be adopted.
The State Government has assumed control of the marina and is investigating options for its continued operation, including a potential partnership with Yankalilla Council.