Creditors could seek family first donations after bob days building empire collapsed← Homepage
CREDITORS owed millions of dollars after former-Senator Bob Day’s building empire collapsed might be able to seek about $2 million in donations he made to the Family First party.
Speaking in Tasmania on Friday, Prime Minister Malcolm Turnbull said there were provisions for liquidators to recover money paid from companies under bankruptcy laws.
Records show former Senator Bob Day, who resigned on Tuesday, made $2,028,200 in donations to the Family First party over the past two financial years.
Mr Day made a $73,200 donation to the party in 2014-15 and donations of $1,471,000 and $484,000 in 2013-14.
Bob Day will be the judge of his own moral obligations, Mr Turnbull said.
It may well be that some payments from Mr Day may be able to be recovered.
Unsecured creditors of Mr Days failed building company Homestead Homes were told at a creditors meeting in Adelaide on Friday they would not be paid the money they were owed.
It owes people in this room and people that might not be here today about $4.9 million, liquidator Matthew Caddy told creditors.
It is almost certain that there will be no money available for insecure creditors.
It will essentially be a bad debt.
But the liquidator would scrutinise donations made to the Family First as part of the investigation.
Mr Caddy said the building group Home Australia lost about $12 million in the final three years before it was declared insolvent.
When the former Family First senator called in the liquidators the companies had no money.
We had to cease construction of any homes, he said.
We had no money to pay tradesmen.
There are 28 unsecured creditors in SA who paid deposits on homes and 75 across the whole group, which consists of five companies.
The liquidator said when Mr Day entered politics he did not appoint anyone else to run the business and it went downhill.
He said money was being moved between the separate businesses in SA, Victoria, NSW, Queensland and WA but they were being run without cohesion. They were left to run themselves, he said.
There was limited integration of the businesses. They were operating within their own silos.
He said the demise of the NSW business Huxley Homes was most significant in the downfall of the group.
- with AAP