The ACT Government was aware that the principals of an auctioneering company that went into liquidation owing the ACT thousands were seeking auctioneer’s licences but had not objected.
The Chief Minister, Rosemary Follett, told the Legislative Assembly yesterday that the ACT Government had not made representations to the court about the suitability of the two men, who were directors of Sale-O, trading as Australian Capital Auctioneers, which was the authorised government auctioneer in the ACT and conducted auctions of federal and ACT government cars, furniture, computers and other items. (The cases have been adjourned until October following other objections.)
Ms Follett said in answer to Tony de Domenico that a review of the Auctioneers Act was under way to work out what controls were necessary to ensure auctioneers are above board and so consumers were protected.
(Present ACT law does not require that proceeds of sales from auctions have to go through a trust account.)
The Leader of the Opposition, Kate Carnell, asked whether the true extent of ACT losses would never be known because ACT Government departments were not keeping proper assets registers. She asked how much had been lost.
Ms Follett said she had noted the liquidation with concern. She would take the substance of the question on notice. As the matter was before the courts she could not comment fully.
Ms Carnell asked whether the matter would be referred to the Auditor-General. Ms Follett again said the matter was before the courts.
In the Federal Court last month, the liquidator said the company had $1.1 million in debts and no prospect of any unsecured creditor getting paid.