Bestjet: Computers, security equipment removed from offices before administrators stepped in

Administrators of the failed Bestjet Travel online booking group have revealed police have been called into the investigation after they made a shocking discovery that’s made their job ‘unnecessarily difficult’.

Rachel James at Bestjet headquarters in Fortitude Valley. Picture: Annette Dew

Police have been alerted that computers and security equipment were removed from the Brisbane offices of the failed Bestjet Travel online booking group before administrators stepped in last month.

That startling revelation emerged tonight in a detailed report from administrators Nigel Markey and Bradley Hellen, who said the actions had made their job “unnecessarily difficult’’.

Customers angry over Bestjet collapse

Creditors meet as clients remain out of pocket

The report shows that 4684 unsecured creditors are owed $10.7 million in the company, which the administrators have recommended be put in to liquidation with virtually no hope of any return to those owed money.

Attempts to gain additional records from Bestjet founder Rachel James and her husband, disgraced aviation executive Michael James, have proved futile and ASIC has been requested to assist, the report says.

Ms James retained a half-stake in the company even though she had purportedly sold it to businessman Robert McVicker, who operated it for just six weeks before appointing administrators at Pilot Partners on December 18.

The report says Mr James, a former bankrupt who was banned from running companies for three years after his Air Australia airline went bust owing nearly $100 million in 2012, “may have acted as a de facto or shadow director’’ of Bestjet.

“The director, former director and de facto/shadow director may have breached their obligations to act in good faith and in the best interests of the company,’’ it says.

“It would appear that the company may have been trading while insolvent from early December.’’

Administrators uncovered questionable financial deals, including ownership of a Disney Vacation Club villa in Hawaii valued at nearly $600,000 and a $50,000 payment to a related party of the James’s.

They also found three transactions totalling $49,127 made on the date of their appointment to a related party of Mr McVicker and another $292,052 in payments made in the month before their appointment.

Creditors scheduled to meet on January 31 are expected to approve the wind up of Bestjet.