Crescent Disability Services workers will not receive superannuation, liquidator Mackay Goodwin warns
Workers at a disability support company run by a self-described “love doctor” are set to miss out on their superannuation entitlements following its failure.
Exclusive: Nearly 200 workers at Crescent Disability Services are set to miss out on unpaid superannuation following the company’s collapse.
An initial report to creditors of Crescent – an NDIS provider with ties to the disgraced Horizon SolSolutions group – has revealed 54 former staff are owed $164,000 in leave entitlements and 174 are due $264,000 of super.
The leave can be paid by the federal government under the Fair Entitlements Guarantee Act. But superannuation is not covered by that scheme.
There does not appear to be enough money left in the company to pay the pension liability. Its net bank balance is barely $3000, liquidators have found.
In bad news not just for those 174 workers but also for 74 unsecured creditors owed at least $330,000, there’s little prospect of extracting any other money from the failed business.
“Our initial investigations indicate that it is unlikely that sufficient funds will be realised from the liquidation of the Company to allow for the payment of a distribution to creditors,” liquidators from Mackay Goodwin said in their report into Crescent Respite Facility Pty Ltd.
However, offering a glimmer of hope, they did also add: “Our investigations have identified a director loan account in the amount of $99,246.00. Our office intends to request further clarification and issue a demand letter with respect to the above loan account. Any recoveries in respect of this loan account would be dependent on the financial capacity of the director.”
The director was self-described “love doctor” Moaz ‘Jay’ Ibrahim. He was contacted for comment.
The liquidators also said: “Our investigations have revealed that the entity Horizon SolSolutions Australia Pty Ltd is a related party to the company with a related party loan account in the amount of $134,570.66. Our office intends to request further clarification and issue a demand letter with respect to the above loan accounts. Any recoveries in respect of these loan accounts would be dependent on the financial capacity of the related party.”
Horizon is also being wound up by a separate liquidator.
It has debts of $80 million and nowhere near that in assets. Its sole director was Sydney man Muhammad Latif.
Crescent provided respite care and long-term homes for NDIS participants.
But it was suspended from the scheme in August.
It went into receivership soon after and was permanently banned in September.
Crescent is believed to have had 13 properties in Victoria and that about 50 disabled people have been affected by its collapse.
Currently the biggest creditor is Allianz Australia Worker’s Compensation (Victoria) Limited at $37,323.90.
But that could change, because the amount claimed by the ATO is yet to be determined.
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Originally published as Crescent Disability Services workers will not receive superannuation, liquidator Mackay Goodwin warns
