❓ Mr. Catania questions the Housing Minister about a $35 million contract awarded to Pindan, a company that reportedly traded insolvently. The Minister acknowledges the situation, focuses on continuing works under the administrator, and highlights payment checks and balances.
AnsweredQoN 123Legislative Assembly
QuestionView source ↗
PINDAN GROUP —
GOVERNMENT CONTRACTS
123. Mr V.A. CATANIA to the Minister for Housing:
I refer to the $35 million regional
maintenance program awarded to Pindan and reports the company was trading
insolvent before administrators took it on.
(1) When did the department become
aware that Pindan may have been trading insolvent?
(2) Does trading
insolvent constitute a breach of a contract held by Pindan with the Department
of Housing; and, if not, why not?
(3) Does the
minister consider the state government liable to pay subcontractors for the
work they have undertaken for the department?
GOVERNMENT CONTRACTS
123. Mr V.A. CATANIA to the Minister for Housing:
I refer to the $35 million regional
maintenance program awarded to Pindan and reports the company was trading
insolvent before administrators took it on.
(1) When did the department become
aware that Pindan may have been trading insolvent?
(2) Does trading
insolvent constitute a breach of a contract held by Pindan with the Department
of Housing; and, if not, why not?
(3) Does the
minister consider the state government liable to pay subcontractors for the
work they have undertaken for the department?
AnswerView source ↗
(1)–(3) I
thank the member for the question. I think everyone in this chamber is acutely
aware of the current plight of subcontractors in relation to Pindan. All of us
are sympathetic to their cause, contrary to what the member said in Parliament
last night. The reality is that we still have a contract in place with Pindan under the EY administrators and that is our key
focus. That contract is in place right now and operating. Our key focus
is to ensure that works continue for those homes across the Pilbara, the
midwest and the member for North West Central's region. I think everyone
agrees that the critical aspect is that we ensure that we continue those works.
Some of those works are emergency works that are required within eight hours or
there will potentially be a threat to a tenant's life. My agency has
established a dedicated team, with Finance, to first of all ensure that
continued delivery. We have obligations under this current contract in regard
to completed works.
I want to be clear on the checks and
balances. This contract was inherited from the former government in 2014 and —
Mr V.A. Catania : Renewed
under your government.
Mr J.N. CAREY : It was
inherited, I think, from a Nationals WA minister, by the way. Checks and
balances were put in place in regard to this matter. First of all, there was a requirement
to pay subcontractors strictly within 14 days
of receipt. There was a requirement, as is standard across many industries, to
submit a stat dec with supporting evidence.
The agency would go out and check that works had been completed. Pindan
submitted its stat dec for the work in March, but, of course, by the
time it got to April, we were then notified by EY regarding the administration.
We are doing everything within our capacity as an agency, as a government, to
ensure that those works continue. Of course, creditors' outstanding
payments are governed by commonwealth insolvency laws and that will see that
process through.
thank the member for the question. I think everyone in this chamber is acutely
aware of the current plight of subcontractors in relation to Pindan. All of us
are sympathetic to their cause, contrary to what the member said in Parliament
last night. The reality is that we still have a contract in place with Pindan under the EY administrators and that is our key
focus. That contract is in place right now and operating. Our key focus
is to ensure that works continue for those homes across the Pilbara, the
midwest and the member for North West Central's region. I think everyone
agrees that the critical aspect is that we ensure that we continue those works.
Some of those works are emergency works that are required within eight hours or
there will potentially be a threat to a tenant's life. My agency has
established a dedicated team, with Finance, to first of all ensure that
continued delivery. We have obligations under this current contract in regard
to completed works.
I want to be clear on the checks and
balances. This contract was inherited from the former government in 2014 and —
Mr V.A. Catania : Renewed
under your government.
Mr J.N. CAREY : It was
inherited, I think, from a Nationals WA minister, by the way. Checks and
balances were put in place in regard to this matter. First of all, there was a requirement
to pay subcontractors strictly within 14 days
of receipt. There was a requirement, as is standard across many industries, to
submit a stat dec with supporting evidence.
The agency would go out and check that works had been completed. Pindan
submitted its stat dec for the work in March, but, of course, by the
time it got to April, we were then notified by EY regarding the administration.
We are doing everything within our capacity as an agency, as a government, to
ensure that those works continue. Of course, creditors' outstanding
payments are governed by commonwealth insolvency laws and that will see that
process through.
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