George Cheihk back in spotlight: developer involved in debt deal for broke construction firm and CCC examines Pisasale deal

DEVELOPER George Cheihk, an ex-bankrupt whose companies once fire-hosed money into sports, is back in spotlight.

Ex-Broncos sponsor Qld Group, on the left is former CEO George Cheihk. Picture: Glenn Barnes

DEVELOPER George Cheihk, a former bankrupt whose companies once fire-hosed money into Queensland sports and politics, is back in the spotlight.

He has proposed a troubled plan to pay off part of the debt of a collapsed Ipswich construction company.

And a property deal involving Mr Cheihk, 48, and former Ipswich mayor Paul Pisasale has also come under the Crime and Corruption Commission’s gaze.

Sydney-born Cheihk arrived in Queensland in the early-2000s in a blaze of cash. BRW’s Young Rich list in 2005 valued him at $35 million and his companies acquired a massive Ipswich land portfolio.

He drove a Lamborghini and partied at his Brisbane riverside mansion with Mr Pisasale in 2004. Cheihk-linked companies donated more than $600,000 to local Liberal and Labor politics while sponsoring the Brisbane Lions and Broncos.

It all fizzled by 2007, with Mr Cheihk going bankrupt and the corporate regulator banning him from managing companies for two years. His entities battled money lawsuits from the likes of the Lions and a Brisbane radio station owner.

He eventually came out of bankruptcy and has returned offering Ipswich land and property packages.

Mr Cheihk became involved earlier last year in the collapse of construction and earthworks outfit Gateway Civil Qld, which was solely owned and directed by David Tripp.

Gateway had worked on a development with a company linked to Mr Cheihk. Mr Cheihk had referred the Gateway matter to administrators Mackay Goodwin, and introduced Gateway’s director to the insolvency experts.

A creditors’ report by the administrators said Mr Cheihk, acting for Che Che Holdings, had then “formulated a proposal” to repay $92,000 of Gateway’s $180,000 debt.

Che Che, as trustee for the GAC Investment Unit trust, said Gateway had not completed contracted work. That had caused cost overruns for a development. But, in an unusual move, Che Che told creditors it would offer to pay the $92,000 “in the interests of moving forward”.

Unfortunately, Che Che failed to repay any of the $92,000 by a July deadline. Che Che blamed problems, including that funds had been due from one Ipswich project’s proceeds, but it had recorded “significant unexpected costs”.

Another creditors’ meeting was held late last month in which those owed money accepted a new Che Che deal, repaying only $80,000 this time.

Mr Cheihk has also been in the CCC’s spotlight. Police last month raided a building in Ipswich owned by Alchemy (Qld), of which Mr Cheihk is a director.

The Courier-Mail understands the CCC has also examined a property sale of a restaurant site owned by Pisasale’s family company to a business of Mr Cheihk’s.

The Courier-Mail earlier revealed the Cheihk company had paid $325,000 in 2004, surpassing market valuations of $150,000 in 2002 and $250,000 in 2005 for the whole property given by council-hired independent valuers.

Mr Cheihk has previously insisted he had another valuation to support the price tag. He has not returned recent calls.

The CCC has charged Pisasale with unrelated offences while Mr Cheihk has not been charged with any offence. The watchdog would only say “there are ongoing investigations into Ipswich City Council matters”.

Contact Liam Walsh 07 3666 6413 [e-mail]

or Kelmeny Fraser 07 3666 6126 [e-mail]