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Former employees of David Collard’s Sanitex Global awaiting assistance as documentary production kicks off

Five months after going bust, former employees of David Collard are yet to receive assistance from the government’s “scheme of last resort”, as a St Joseph’s College classmate confirms a documentary is in the works.

David Collard at New York’s Manhattan Supreme Court in February. Picture: Jefferson Siegel.
David Collard at New York’s Manhattan Supreme Court in February. Picture: Jefferson Siegel.

Employees of failed Geelong company Sanitex Global are anxiously awaiting financial assistance from the federal government as details emerge about a documentary exploring its founder David Collard and the fallout from his failed ventures.

Not one former Sanitex employee has received payment via the government’s Fair Entitlements Guarantee (FEG) more than five months after the company was forced into liquidation, sources said.

The FEG is a “scheme of last resort” that provides payment to employees in the event of an insolvency.

Up to 13 weeks of unpaid wages can be claimed – capped at $2673 a week – as well as unpaid annual and long service leave.

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

“We (former employees) are supporting each other as best we can, while awaiting some relief from the FEG,” they said.

“It’s the sort of experience you could only endure once in a lifetime”.

Former Sanitex director James Fatone. Source: Facebook.
Former Sanitex director James Fatone. Source: Facebook.

The Department of Employment a Workplace Relations (DEWR) administers FEG payments.

Its website states that claims are typically processed within 16 weeks but there was currently a significant increase in demand, pushing out waiting times.

“The assessment of claims from former employees of Sanitex Group is underway and at various stages, including awaiting further information from claimants,” a DEWR spokesperson said.

“DEWR makes efforts to finalise payments as quickly as possible while ensuring payments are correct and comply with the legal framework.”

One former employee was told “high-level ongoing investigations” were delaying their claim.

Another was told the complexity of the situation was the cause.

A liquidator’s report from Worrells’ Scott Andersen said 26 Sanitex employees remained upon his appointment in November, but others had resigned in the preceding months due to non-payment that stretched back to May for most.

As of last week, former employees were owed more than $2.4m, according to proof of debt claims lodged with Worrells.

“I expect that payments will start being made through the FEG scheme in the short term,” Mr Andersen said in his February report.

The official opening of Sanitex Global’s Geelong headquarters. Source: Facebook.
The official opening of Sanitex Global’s Geelong headquarters. Source: Facebook.

Mr Collard and James Fatone were directors of Sanitex, a subsidiary of Scale Facilitation.

The company courted publicity during the Covid pandemic when it produced a range of products.

It launched its Geelong headquarters within the Federal Mills precinct in June 2021 amid much fanfare.

Two years later it was raided by federal authorities investigating alleged tax fraud.

“Most of us (former employees) have been contacted by, and continue to co-operate with state and federal authorities,” the former executive said.

“He (Collard) has set some people back 10 years … taken their savings, and ruined their careers.”

The impact on former Sanitex employees, and Scale staff more broadly, will be a key focus of an hour-long documentary that’s in the early stages of production.

Leading the project is Jeremy Bowtell, a former St Joseph’s College Geelong student who graduated in 2002 alongside Mr Collard and Mr Fatone.

A large number of St Joseph’s alumni worked for Scale, although many quietly left when they saw the inner workings.

Mr Bowtell is co-director of Melbourne-based media company Pure Production.

“I’ve been deeply disturbed by the events that have unfolded, the impact this has had on people’s lives, and the lack of accountability from those responsible,” he said.

“There has been a lot of pain felt throughout the Geelong community and beyond, so I hope that this film can help to reconcile the experiences of all who’ve been affected.”

Some former employees are reluctant to participate in the documentary as they want to put the saga behind them.

Mr Collard and Mr Fatone were contacted for comment.

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Originally published as Former employees of David Collard’s Sanitex Global awaiting assistance as documentary production kicks off

Original URL: https://www.thechronicle.com.au/news/geelong/former-employees-of-david-collards-sanitex-global-awaiting-assistance-as-documentary-production-kicks-off/news-story/4b8a0415130ac578bf055f87b5000cd0