Subbies get chance to grill Cullen Group directors after Labor backs probe into company’s collapse

SUBBIES owed $38 million will be able to cross examine Cullen Group directors under oath as part of a public examination into the company’s collapse.

Boheme Apartments at Robina. Photo: Steve Holland

SUBBIES owed $38 million will be able to cross examine Cullen Group directors under oath as part of a public examination into the company’s collapse.

Public and Housing Works Minister Mick de Brenni has written to the Subcontractors Alliance confirming backing of the Palaszczuk Government if returned to office.

A Bulletin investigation in January this year found the company sold a luxury $875,000 unit to the wife of company founder Wayne Cullen just two months before Gold Coast subbies were owed millions of dollars from the collapse of the construction empire.

After the reporting, Mr de Brenni backed an investigation into the Queensland Building and Construction Commission vowing “we will get to the bottom of this” after the building industry watchdog had been warned about the company.

About 520 subbies were creditors after a liquidator was appointed, and the company’s collapse sparked law reforms guaranteeing security of payment.

Housing and Public Works Mick de Brenni is backing Gold Coast subbies in the Cullen Group dispute. Photo: David Clark

INSIDE STORY OF CULLEN GROUP COLLAPSE

Mr de Brenni yesterday confirmed the Government would allow Coast subbies caught up in the liquidations of Cullen Group Australia and Queensland One Homes to shine a light on the circumstances surrounding these collapses.

“These liquidations did real damage to small and medium construction businesses across the Gold Coast and South East Queensland,” he said.

“The power to publicly examine is one of the strongest legal mechanisms available in Australia for the purposes of investigating a business collapses.

“Labor is going to equip the liquidator with the tools to get to the bottom of exactly what happened.”

Security when the Boheme Apartments at Robina project turned sour. Photo: Steve Holland

Subcontractors Alliance leader Les Williams told the Bulletin: “This public examination funding will allow the liquidator of both Cullen and Q1 Homes to subpoena information and documents related to the insolvency of both companies and further examination of all related parties in a court of law.

“The Subcontractors Alliance has held serious concerns about the lawfulness of 35 main contractor insolvencies in Queensland since Walton in 2014 that has cost over 4000 subcontractors approximately $250 million.

“We have previously expressed our concern at the lack of prosecutions in this regard and the conduct of some legal and insolvency professionals. We welcome this funding.”

Originally published as Subbies get chance to grill Cullen Group directors after Labor backs probe into company’s collapse