A Canberra auctioneering company has debts of at least $1.1 million, mainly to the Federal and ACT Governments, according to the liquidator, Ray Dawson, of Ernst Young.
Mr Dawson was appointed official liquidator by the Federal Court last Friday. The company, Sale-O Pty Ltd, traded as Australian Capital Auctioneers, and had a large trade in selling government goods, especially cars, furniture and computer equipment.
Mr Dawson said a “”best estimate” presented to the court showed the company had assets of $40,000 and debts of $1.1 million after 2{ (two and a half) years trading.
As $80,000 was owing in group tax which takes preference, no other creditor would get paid.
About $600,000 was owed to the Commonwealth and about $50,000 to the ACT.
However, ACT sources suggest the precise debt might never be known because of defective record keeping of assets and payments for them after sale. Apparently some amounts had been outstanding for some time without demands being made for payment.
The ACT law on auctioneers does not provide for proceeds of sales after deductions for fees and expenses to go into a trust account, like most other states and like the requirements for lawyers. And there is no provision for spot audits, as for lawyers.
A considerable number of private citizens who gave the company goods for auctioning will now lose their money.
The Leader of the Opposition, Kate Carnell, and her deputy, Tony de Domenico, called yesterday for the full implementation of recommendations of three inquiries into the setting up of a full ACT assets register: the Priorities Review Board and the Else-Mitchell inquiry into the Assets and Public Debt of the ACT in 1990 and the Audit-General’s report last year.
They said the Liberal Party would seek amendments to the auctioneers law to provide for trust accounts. Mr de Domenico said he would ask questions in the Assembly as to whether any of the principals had sought or obtained individual auctioneering licences.
Relevant ACT and Commonwealth spokespeople were still seeking replies to questions at the close of business yesterday. The principals of the company could not be contacted yesterday.