JM Kelly executive ‘fabricated’ figures given to QBCC, court hears

As JM Kelly edged closer to collapse, the building industry watchdog was not told the truth about its financial position, a court has heard.

MORE bombshells at the JM Kelly Group public examination in the Federal Court.

The court heard that Elizabeth Murphy, the financial controller of the failed group, allegedly fabricated the amount of debt owing to the group in figures given to the building watchdog. Barrister Craig Wilkins, acting for JM Kelly liquidator Derrick Vickers of PwC, told the Federal Court that the amount of trade debt owing to the group and provided to the Queensland Building and Construction Commission (QBCC) in 2017 was $1.7 million higher than figures given to the group’s accountant.

JM Kelly financial controller Elizabeth Murphy.

Mr Wilkins suggested to Ms Murphy that trade receivables, or debts owing from customers and others, had been inflated by adding in intercompany debt from the JM Kelly Group that could not be counted as assets.

The QBCC was at the time investigating whether the Rockhampton-based building company, which collapsed last year owing $30 million, had sufficient assets to keep its building licence.

Mr Wilkins said the names of the trade debtors provided to the QBCC had been removed so they could not be checked.

“I suggest to you that what you did was that you fabricated the list of trade debtors and you did it to hide from the QBBC the intercompany receivables,” said Mr Wilkins.

Ms Murphy denied fabricating the figures provided to the QBCC and said the difference in the amounts could be explained by adding in GST and various progress payments.

BANK TRANSFERS

Earlier the court heard Ms Murphy had made a series of six-figure transfers from her personal bank account including to her brother’s family after the collapse of the building company.

She said that she received $520,795 from the sale of her Rockhampton property in May this year which was deposited in her Bank of Queensland account.

Ms Murphy told the court that she made one transfer of $240,000 to another of her accounts and one of $102,000 to the wife of her brother John Murphy.

Mr Murphy was the director of the JM Kelly Group.

Under questioning from Mr Wilkins, Ms Murphy said the transfer to her sister-in-law was to help the family after John Murphy was diagnosed with cancer.

“John can’t work and has three young children to support,” Ms Murphy said.

She said other funds were used to pay her legal expenses flowing from the public examination.

The hearing continues this week.

TIED UP

SCOTT Hutchinson wore one and so did most of the others blokes who attended the prestigious Lord Mayor’s Business Awards at City Hall on Friday night. But apparently Lord Mayor Adrian Schrinner didn’t get the memo about wearing black tie to his own event. Instead of donning a black bow tie, he rolled up in a business tie. So much for tradition. We pity those who forked out their hard earned to hire, or at worst buy, a tuxedo to attend the event but it seems the interpretation of black tie seems to be pretty liberal these days. Hutchinson (illustrated), who picked up the lifetime achievement award, was recognised as a passionate advocate and philanthropist for the local music industry and for creating The Triffid and The Fortitude Music Hall.

Courtenay Brown and Scott Hutchinson at the Lord Mayor's Business Awards black tie gala dinner in Brisbane. Picture: AAP image, John Gass.

BIG HEARTS

KUDOS to the Brisbane-based TechnologyOne Foundation which has announced a $620,000 donation to children living in poverty and their families. The figure represents the largest-ever charitable contribution by the foundation, which was started by the tech firm.

The 2019 donation will be shared among eight organisations---Opportunity International Australia, The Salvation Army, The School of St Jude, SolarBuddy, The Fred Hollows Foundation, Princes Trust (UK), Smith Family and Big Issue---and brings TechnologyOne a step closer to its goal of helping lift 500,000 children out of poverty in 15 years.

The TechnologyOne Foundation is a generous giver

SIMON SAYS FAREWELL

GOLF-LOVING Simon Barnard is bowing out of the Queensland presidency of Strata Community Association this week after seven years at the top.

And we hear there will be plenty in government who won’t be shedding a tear. Barnard has been a strong advocate for the strata sector in Queensland and has stood up to many state and local political leaders to get a fairer deal for the people who administer apartments, units and townhouses in Queensland.

Over the last two years Barnard has been at the pointy end at negotiating with the State Government to address vital issues in Queensland like flammable cladding, construction standards and body corporate reforms. Former Gold Coast based solicitor James Nickless, will step into Barnard’s shoes.