Page 3281 - Week 11 - Thursday, 13 September 1990
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
(5) ACT Public Works was aware of suggestions in February 1990, that R & G Shelled Pty Ltd was experiencing a liquidity problem. Enquiries into these suggestions were made of the Company which indicated that it was experiencing a cash flow problem due to slow workload and consequential lower payments associated with wet weather and the cost of recreation leave payments for salary and labour employees during the Christmas close down.
ACT Public Works was aware of negotiations for the sale of Town and Country Hire, of units at Mawson House and that sale documents were being prepared for a number of units in the Campbelltown subdivisions which had been refinanced after the restructuring of Elders Finance. These sales were to improve cash flow.
(6) Clause 43.1 relates to the Contractors workmen engaged on the work under the contract and does not include other persons such as sub-contractors associated with the contract. Clause 43.1 does not provide for the client to check contractors records in regards to sub-contract payments.
(7) No, ACT Public Works had no cause to undertake any checks as it was narrower of any problems concerning payments to workmen.
(8) See Question 5. Checks were carried out to verify R & G Shelley Pty Ltds financial viability prior to contracts being let. These checks included:
confirming bank support for unconditional guarantees and overdraft; suppliers support; Superintendents reports on 18 separate projects.
In addition to this Directors guarantees were obtained for additional asset backing and security where necessary. These checks satisfied the requirements of ACT Public Works for awarding these contracts.
(9) ACT Public Works conducted financial examinations at
R & G Shelley Pty Ltd and in doing so obtained:
Balance sheets for year end operations
separate financial defaults which included:
- assets and liabilities
- details of plant and equipment
.. cost
.. amount owing
.. current valuation
details of private assets which were available to the company turnovers past and future predictions
suppliers to be used
- value to be supplied
- credit limit
3281
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .