Mr. Catania questions the Minister for Finance regarding Pindan Group's collapse, project bank accounts, and Bankwest's involvement. The Minister acknowledges the issue, explains the history of project bank accounts, and promises to seek specific answers.

AnsweredQoN 182Legislative Assembly
Asked
2 June 2021
Portfolio
Finance

QuestionView source ↗

PINDAN GROUP —
GOVERNMENT CONTRACTS — PROJECT BANK ACCOUNTS
182. Mr V.A. CATANIA to the Minister for Finance:
Firstly, I would like to acknowledge
the subcontractor Warren Smith from Gascoyne Plumbing Solutions who has lost
$150 000 from work undertaken through Pindan on behalf of the McGowan Labor
government.
I refer to contracts signed between
the state government and private contractors and, which, in turn use project
bank accounts.
(1) Is the
minister aware that the Commonwealth Bank, owner of Bankwest, has proposed a suspension
on all project bank accounts?
(2) Can he
confirm that the majority of project bank accounts are held with Bankwest as a subsidiary
of the Commonwealth Bank?
(3) Is he aware that Bankwest, a subsidiary of the
Commonwealth Bank, is attempting to claim money from those project bank
accounts connected to Pindan through internal transactions rather than the
creditor process.
The SPEAKER : They are very
lengthy questions, but I will allow them on this occasion.

AnswerView source ↗

(1)–(3) As the member knows, the project bank accounts
are dedicated trusts that have been set aside to improve the accountability of
payments to subcontractors. They were actually introduced by the previous
Liberal–National government in 2016 in the dying days of the Barnett
government when it was forced to introduce them through the collapse of the CBD Group. Our
government increased the use of them for projects over $1.5 million.
As
far as the current government projects with Pindan go, the Department of
Finance has two projects worth over $1.5 million for which the project
bank accounts are being utilised. As the member will also know, it is a very
complex area that evolves trust law and commonwealth insolvency law.
Regarding the specifics of the member's
question, I do not know the details or the answers to the specific questions he
asked about Bankwest and the Commonwealth Bank. Obviously, as has been said to
him and others, we have been working
overtime to try to see what we can do on this front since the collapse of Pindan. We have to work with the
administrator and within the law and that is what we intend doing, and what
we will do. We will do everything we possibly can. It is, of course, very
distressing for all the subcontractors who are owed money by Pindan being put
into administration. Project bank accounts were set up by the Barnett government, which was forced to set them up
through the collapse of the CBD Group . They are a method of trying to
improve security of payment. Two of our projects are with the Department of
Finance. Regarding the specific questions, I will seek an answer for them and
provide it for him.

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