Cullen Group collapsed owing $45m after ‘manipulating’ books
A failed Brisbane building group ‘manipulated’ its accounts to show it owed subbies and other creditors $10m less than the real amount, later collapsing with debt of $45m.
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Failed Queensland building firm Cullen Group Australia ‘manipulated” its accounts to show it owed subbies and other creditors $10m less than its actual debts, a court had heard.
A public examination in the Federal Court Wednesday heard that the Queensland Building Construction Commission (QBCC) had requested the accounts of the business in December 2016 after questions emerged about its ability to pay its debts.
Barrister Edward Moon, for liquidator Michael Caspaney, said the accounts prepared by Cullen Group for the QBCC in December 2016 just prior to the company’s collapse showed amounts owing to creditors of only $9.4m when the real figure was more than $20m.
Under questioning from Mr Moon, accountant Ian Wood, who had been retained to prepare the financial records for the QBCC, admitted he may have been too trusting of Cullen’s external accountant Peter Mangan. Mr Moon asked Mr Wood whether he was aware Mr Mangan had “manipulated” the accounts before presenting them to him.
Mr Wood told the court that the figure showing the larger amount of debt owing had been explained away by the company as a “draft” that had been revised down.
He said he did not recall whether he had made any effort to ascertain what the true financial position of the Cullen Group had been prior to submitting the financial reports to the QBCC.
Barrister Mr Moon said Mr Wood had signed off on a profit and loss statement that showed the company had made a $1.43m profit. But by that time Cullen was making losses in excess of $2m.
“The profit and loss statement was sent to you the night before and your perusal would have been rudimentary at best,” said Mr Moon. “Despite the fact that you told the QBCC you had conducted a comprehensive review you cannot recall whether you did or not (undertake a comprehensive review).”
Mr Wood said it had been more than five years since he prepared the report and could not recall whether he had undertaken further investigation into the veracity of the figures.
Cullen Group director Wayne Cullen is expected to appear before the public examination on Friday after he failed to appear as scheduled on Tuesday.
A former rugby league player Mr Cullen played for Souths in a team that included Mal Meninga, Gary Belcher and Peter Jackson against a Wynnum side led by Wally Lewis.
Mr Cullen started the company in 2008 and in the final two years before its collapse finished more than a 100 jobs a year worth $25m.
Originally published as Cullen Group collapsed owing $45m after ‘manipulating’ books
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