NPM Group collapse: National Projects and Maintenance director Daniel Afonso reveals police are investigating fraud allegations

Standing shirtless outside his Sydney home, the director of a failed building company that’s left behind $40m in debts reveals police are investigating fraud accusations. Hear what he tells our reporter.

Economic forces are the chief reason most building businesses are going to the wall, but it can now be revealed that one of the largest collapses in recent times involves allegations of fraud which have been referred to police.

Western Sydney-based NPM Group shut its doors in October, costing over 100 jobs. The office fit-out firm’s debts are at least $40 million greater than its assets. The Australian Taxation Office is the largest of more than 75 creditors, owed $6.7m.

At the time, director Daniel Afonso said in a statement that “the ongoing market pressures have made NPM’s continued operation untenable, due to skilled labour shortages, inflationary pressures, interest rate rises and a commercial sector that continues to suffer from flow on effects of Covid-19 pandemic”.

But that’s not the whole story.

At a creditors’ meeting, NPM’s administrator Graeme Beattie of Worrells, was asked about “allegations of funds being misappropriated.”

The meeting minutes, lodged with the Australian Securities and Investments Commission, show that Mr Beattie responded by saying that “he was aware of the allegations but currently awaiting further details of the events. He noted that a police report was filed.”

Mr Afonso spoke to The Daily Telegraph outside his home.

In an interview with The Telegraph on Thursday, Mr Afonso said he understood a police investigation was under way.

He said he wasn’t the person being accused of misappropriation.

“It’s a former employee (in) a fraud case,” he said.

Asked whether the alleged misappropriation was a factor in NPM’s failure, he said: “Maybe.”

At least one NPM supplier was told the amount allegedly embezzled was a seven-figure sum.

Asked what caused the group’s failure, Mr Afonso did not echo his October comments. Instead he replied: “I can’t say anything.”

Mr Afonso after speaking to The Telegraph.

The Telegraph has been told NPM’s secured creditors have registered debts of up to $18m.

The minutes of the creditors’ meeting say NPM’s assets “are not sufficient to discharge the priority employee entitlements and secured liabilities. Therefore, unsecured creditors will not receive any return from the realisation of assets.”

One of the scores of unsecured creditors is Australian Workstation Manufacturers, owed $270,000.

Its director Ric Lewarne told The Telegraph: “We will never deal with a company which has him (Mr Afonso) as a director or a company he works for or he advises. You can quote me on that.”

Attempts to interview Worrells’ Mr Beattie were unsuccessful. A representative of the firm said a media release explaining NPM’s collapse would be released “soon”.

Police did not provide any information on the fraud investigation when contacted. Mr Afonso also said he had not been able to get more details from police. No charges are known to have been laid.

There were at least 10 companies in the NPM Group, which had completed over 45,000 projects for clients including UNSW, Landcom, NRMA and Ramsay Health Care.

Collectively, the NPM Group has more than 75 creditors.

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