Police probe complaints by JM Kelly liquidators

COMPLAINTS by JM Kelly Builders Pty Ltd’s liquidator PwC about falsified statutory declarations issued by the company under investigation.

The ALDI construction site was bare today after tradespeople walked off the job after JMK Kelly went into liquidation. Picture: Shayla Bulloch

COMPLAINTS by JM Kelly Builders Pty Ltd's liquidator PwC about falsified statutory declarations issued by the company remained under investigation by Queensland Police.

PwC has told the second meeting of the Committee of Inspection made up of employee and unsecured creditors' representatives that a QBCC-funded public examination in the Federal Court of Brisbane would seek any evidence to support further criminal investigations into the company's affairs.

The liquidator has revealed the QBCC was keen for the Public Examination to explore "any potential criminal offences".

While that would be done he made clear the main emphasis would remain on potential civil claims.

JM Kelly Builders went into liquidation last October owing unsecured creditors more than $11m.

The liquidator also told the Committee of Inspection the Sydney-based auditor who had signed off on JM Kelly Builders Pty Ltd's Minimum Financial Requirements report to the QBCC would be subpoena-ed to give evidence at the public examination which would be held in the first half of this year.

Legal proceedings would also be launched to wind up associated company JM Kelly Pastoral and two other entities.

The liquidator chaired the Committee of Inspection meeting in Brisbane on February 11.

He further revealed that at a meeting with JM Kelly Builders Pty Ltd director John Murphy and his sister Elizabeth on December 5 last year he had suggested the pair think about putting forward an offer to creditors to avoid further inquiry including what was at that stage only a likely public examination.

The liquidator said no offer was put forward.

John Murphy's father Geoff, who was in 2016 excluded by the QBCC from the industry for three years over his involvement as director in the collapse of JM Kelly Project Builders Pty Ltd, has repeatedly claimed there was no wrong doing.

He has previously claimed his son John had sought the December meeting with PwC to complain about the liquidator not conducting due diligence.

Mr Murphy said the meeting was not to discuss potential actions that may be faced by the directors. He said John had encouraged a full police investigation of the matters.

A News Ltd Back Our Subbies campaign has told the stories of subcontractors left unpaid by JM Kelly and who had suffered over a number of years what they described as a record of late payments by the builder on state government-funded projects.

"I believe my integrity and honesty in business over the past 60 years is beyond reproach," Geoff Murphy has said in response to earlier questions.

The Committee of Inspection was told the liquidator had asked the Fair Entitlement Guarantee to help fund the Public Examination and ongoing investigations into the JM Kelly Group.