David Collard’s Sanitex Global failed to maintain proper records, says liquidator’s report

A Geelong businessman’s failed $1.2bn start-up empire is under the microscope, with a liquidator alleging serious flaws in keeping and maintaining key records.

David Collard is the director of Sanitex.

The company at the centre of a failed Geelong tycoon’s start-up empire, which claimed to have assets of $1.2bn before it collapsed, failed to keep proper records, according to the liquidator trying to piece together its finances.

In a newly released report, Scott Andersen of Worrells said he was of the opinion that David Collard’s business Sanitex Global did not maintain and keep records to enable true and fair financial reports to be prepared. He has also called on authorities and multiple former employees and contractors to help him find detailed financial information.

Sanitex have also claimed that they are owed $1.2bn by various associated entities, which include other funds and business partnerships owned and run by Mr Collard.

In February, it was reported that the company owed $23m, including a $9.5m penalty for intentionally disregarding Australian tax laws, and $4.1m in unpaid wages and superannuation shared among 68 staff.

However, according to the recent report, Sanitex was party to transactions totalling approximately $80m in the four years prior to Mr Andersen’s appointment.

Mr Andersen said he had issued demands to directors, former directors, former accountants, former solicitors and the Australian Federal Police in an attempt to locate and collect as many books and records of the company as possible.

“Mr Collard has failed to comply with my requests to provide me with access to these records,” Mr Andersen said.

“Mr Collard has also advised that the company’s accounts were not properly maintained, and the financial statements cannot be relied upon.”

Mr Andersen said these factors, combined with the sheer volume of transactions and absence of funding in the liquidation, had severely hindered his investigations.

“The bank account ledgers in the company’s internal management accounts also disclose a large volume of transactions for significant value, totalling approximately $80m across approximately 1700 transactions over the period July 2021 to August 2023.

Mr Andersen said at least 50 per cent of the $80m was in dealings with related businesses.

In April, it was revealed that employees were anxiously awaiting financial assistance.

One former executive said every employee was owed “tens of thousands (of dollars)” and that the Fair Entitlements Guarantee payments couldn’t come quick enough.

Mr Anderson said unless funding was received, the report would be his final advice to creditors.

A former executive and insider said there was a tight-knit group of former employees who did not want the liquidation process to crash due to a lack of funding.

“We will rally and make a concerted effort to raise funds to ensure the truth is found.”

Sanitex Global was a start-up that claimed to connect investors and innovators with strategic partners to scale their innovations.

Originally published as David Collard’s Sanitex Global failed to maintain proper records, says liquidator’s report