Banned but Salim Mehajer still owns development firms

Salim Mehajer retains ownership of companies despite receiving a three-year ban from managing corporations.

ASIC determined Salim Mehajer’s business conduct ‘lacked commercial morality’. Picture: Adam Yip.

Salim Mehajer retains ownership of a string of property development companies despite receiving a three-year ban from managing corporations, with family members, friends and his estranged wife Aysha legally holding the reins, according to documents lodged with the Australian Securities & Investments Commission.

It emerged yesterday the former deputy mayor of Sydney’s Auburn received the ban from the corporate regulator late last year to protect the public from his “incompetence” after it was determined his business conduct “lacked commercial morality”.

ASIC yesterday announced it had banned Mr Mehajer in ­November last year — three months after his opulent wedding drew attention to allegations of corruption at Auburn city council — but he had appealed the ­decision and also successfully ­obtained court orders suppressing disclosure of the banning order.

On August 19 the Administrative Appeals Tribunal upheld ASIC’s decision to disqualify Mr Mehajer and found the property developer had “adopted a cavalier approach” to managing two of his failed companies. Those companies were SM Property Developments and SM Engineering and Constructions, which owed more than $1 million to the Australian Taxation Office as well as money to other creditors.

ASIC’s banning orders in ­November last year came after an investigation by The Australian uncovered alleged irregularities with the way those companies had been operated. The AAT ­decision upholding ASIC’s order was itself subject to a suppression order which expired at midnight on Friday.

In November Mr Mehajer made headlines after resigning as director from almost all of his property development companies. It is now apparent why he did so.

Despite the ban, Mr ­Mehajer can still enjoy profits from the companies and searches show he retains full ownership of many of them. His associates will also be able to keep a managerial eye on the companies, with relatives Khadijeh, Amal and Mohamad Mehajer and associates Khlaed Yagi and Rafi Noori among those brought on as directors after Mr Mehajer’s banning.

Mr Mehajer’s estranged wife Aysha — who has reverted to using her maiden name, Learmonth — also remains a director and co-owner of several of the companies.