Investigations continue into the trading of Eruliaf Earthmoving Pty Ltd, which traded as Fraser Earthworks

A former employee of a Sunshine Coast earthworks company currently being investigated for insolvent trading has spoken out about the concerns he raised.

Fraser Earthworks.

Those caught up in the liquidation of a Sunshine Coast earthmoving company have been told there is “not expected to be a dividend” paid to creditors, as a former senior staff member speaks out.

Eruliaf Earthmoving Pty Ltd, which traded as Fraser Earthworks, appointed Mohammed Shahin Hussain as liquidator of the company on November 2, 2023.

The earthmoving company is estimated to owe a debt in excess of $3m to creditors.

One of the major creditors involved is the Australian Taxation Office, which according to Mr Hussain is owed an estimated $2.4m.

The Australian Securities and Investments Commission report to creditors seen by this publication showed the Chevallum-based earthmoving company was owned by Samuel James Fraser who acted as the company’s director and secretary since the company was registered in September 2011.

The ASIC report states investigations into claims of insolvent trading by the company were continuing.

A former senior manager who worked for the Fraser Earthworks company told this publication he believed the company may have been trading insolvently “long before” he began working for the business in 2021.

“I resigned for that reason, citing concerns about the way it (the company) was being run,” he said.

The ex-employee, who did not wish to be named, said he suggested a number of changes to the company before resigning in January 2022.

“In December 2021 I raised my concerns regarding the insolvency of the company and at this time I suggested some changes that should be implemented which could assist the business in recovering from its financial demise,” he said.

Former director of Fraser Earthworks, Samuel Fraser.

The statutory report from the liquidator indicated to creditors it was not likely at this stage they would be paid dividends.

“A dividend will be contingent on recoveries from the claims noted in this report. Based on the recoveries to date, there is not expected to be a dividend paid to priority or unsecured creditors,” the report states.

In the report Mr Hussain stated he believed the company had been insolvent from 2020, amassing more than $1m in ATO debt in under two years.

“During the period 1 February 2022 to my appointment, there was a net increase in the Company’s debt to the ATO of $1,549,958,” Mr Hussain said.

Repeated attempts for a response from Mr Fraser were declined.

Originally published as Investigations continue into the trading of Eruliaf Earthmoving Pty Ltd, which traded as Fraser Earthworks