Eight undisclosed major commercial and residential developments on ASIC's radar

ASIC’s surveillance program that looks to identify illegal phoenix operators has now been widened to look at the building and construction sector’s use of false statutory declarations.

Commissioner Greg Tanzer said that there had been feedback from small businesses, industry bodies and government agencies that false statutory declarations have been used to claim payments for work.

Tanzer said that there are concerns that some officers of larger companies are falsely declaring that they have paid small businesses contracted to work on commercial and residential projects, when this is untrue.

This will see a focus from ASIC on eight major commercial and residential developments that are currently under construction across the country.

“Falsely declaring that you've paid a contractor has serious flow-on effects in the building and construction industry. Many contractors are small business operators who have operating expenses and debts to pay. When they are not paid for work undertaken it puts their businesses, livelihoods and creditors at risk,” he said.

“While false statutory declarations and fraud matters are matters for other regulatory and enforcement agencies, company officers who knowingly make a false statement regarding payments to creditors may find themselves facing criminal or civil action by ASIC,” Tanzer explained.

Administrative action may also be taken against company officers who engage in misconduct, under the Corporations Act. This has seen 60 directors banned in the past year over misconduct involving phoenix activity.