A building group that has already cost the Christchurch City Council $166,000 owes it another $37,000.
The council last week wrote off $165,831 owed by Global Developments (New Zealand) Ltd (now in liquidation and renamed Derby Grey Ltd) for development contributions on 12 units in Worcester St, Linwood.
Housing New Zealand (HNZ) bought the units last year for $4 million.
Global Developments is part of the Global Homes Group connected to Auckland businessman John Edward Clancy.
English-born John Edward Clancy heads a troubled building group in Christchurch
The council has now liquidated another company in the group. Global Developments 511 Madras Street Ltd was put into liquidation on July 10 by the High Court in Auckland
The company owes the council $35,416 for a building consent and the council spent another $2000 putting the company into liquidation………
In addition, the Companies Office has started an investigation into allegations Global company documents submitted for registration in the Companies office are incorrect.
Under the Companies Act, directors and shareholders must give their correct residential addresses for certain documents.
Clancy appears to have entered the address of his business premises as his residential address. His Auckland accountant, Richard Somerville, who is a director of a trustee company holding shares in the Global group, appears to have done the same.
Somerville said he was vacating his role with the Global group and would be approaching the Companies Office about the alleged irregularities.
Clancy could not be contacted.
A spokesman for the Companies Office said the allegations about the document irregularities made by the Society for the Promotion of Community Standards [“SPCS”] were being investigated.
“Where non-compliance is identified the Companies Office undertakes administrative action to obtain compliance,” he said.
Prosecution would be considered in exceptional cases, the spokesman said.
The Press article this morning refers to Derby Grey Ltd as the company completing Waltham Road for HNZ.
This is incorrect because that company is in Liquidation.
The company is Global Developments
Waltham Ltd.
It would seem much of what has been reported here is supposition and hearsay …….. why has no one mentioned that these companies were never run by the director himself but by a team of highly paid professional staff including a very highly paid General Manager an Operations Manager a Financial Controller and all other offshoot companies having its own General manager in place????? is there not some culpability with these individuals? Although it seems the director should have had more input, it would be interesting to see where this went wrong initially and what the GM and FC did to handle the issues before it became such a mess. As a sub contractor and creditor, I never met the director only his staff members who employed my company.
Council consents were never uplifted from council, most other councils charge for consent on pick up?? why would the council then waste another 2k liquidating a company knowing there were no funds….. this is a blatant waste of ratepayers funds….. how many other blunders is this council going to make before someone takes them to task tsk tsk mayor get your house in order this council is a blimmin basket case!!!!!
Although Mr Clancy was director, his appointed General Manager ran all of these companies with an operations manager in place for the company owing the largest proportion of money to creditors. You would find if you bothered to look that most of the sub trades engaged to work within these companies were engaged by the manager of the particular Global Entity which were run autonomously by each manager and reported directly to the general manager. If you are going to continue to write this stuff, do your homework fully and report the facts not just the easy stuff. So easy to vilify the wrong person.