The collapse of the authorised government auctioneer in the ACT, Sale-O Pty Ltd, trading as Australian Capital Auctions, had been referred to the fraud squad and the Australian Securities Commission, the Senate has been told.
The general-manager of DASFLEET, Mr S. Palywoda, told Senator Minchin (Lib, SA) in estimates hearings last week that the contract had been let after very extensive checks, both financially and through referees.
The Department of Administrative Services had instructed the Australian Government Solicitor to commence legal proceedings to recover the moneys.
The liquidator of Sale-O told the Federal Court that about $1.1 million is outstanding, most of it to the Federal Government. Mr Palywoda said $339,508.50 was owing to DASFLEET after auctions of government cars.
Two of the principals of ACA, Colin Lappa and John Cooper have applied for ACT auctioneer’s licences as individuals. Their applications were adjourned in the ACT Magistrates Court last week pending a police report.
Mr Cooper has formed a new company based in Essington Street, Mitchell. An auction was held at the premises on Sunday. Mr Cooper called the auction. A licensed auctioneer was on the premises supervising the auction.
A spokesman for the Australian Federal Police said two police officers had attended the auction. The matter had been referred to the Director of Public Prosecutions.
Mr Cooper did not return a call yesterday.
At the estimates hearing, Senator Minchin asked Mr Palywoda: How did this company happen to get the contract; was there a public tender process? _ Yes, there was a tender process.
Are you able to tender the contract, or can the committee be shown the contract? Is there any problem with that? _ I would have to take that on notice. As you are aware, there is some litigation going on, and some police inquiries. . . .
I am led to believe that this company has retail outlets, as well and that it is not just an auctioneer, is that correct? _ I have no knowledge of that.
Could you just tell us where that action is at and what you are doing to recover your moneys? It would appear that you have got into bed with a shady character. That might be quite innocent on your part. _ It was certainly innocent on our part.
Mr Palywoda then described the steps being taken by DASFLEET to recover its money.
DAS has called for expressions of interest for pre-qualification for tender for the position as new authorised government auctioneer in the ACT for fleet cars. Applications close on September 9. A similar process for miscellaneous items (mainly furniture and computers will follow.