FRIDAY will mark one year since Canberra company Hewatt’s went into voluntary administration during a multi-million dollar defence project at HMAS Albatross, owing local contractors millions of dollars.
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And despite agreements local companies would receive two payments, they are still waiting.
Hewatt’s had been undertaking earthworks for Lend Lease, the lead contractor on the construction of $138 million maintenance and training facilities for the navy’s new Seahawk Romeo helicopters.
Mark Nelson’s Coordinated Logistics was one of 30 local contractors left out of pocket during the project.
He is owed $350,000 for transporting fill at the development.
He said due to that loss he had been forced to lay off staff.
“Contractors are owed between $3 and $5 million and when that flows onto the community, I would say the Shoalhaven has lost between $10 and $15 million,” he said.
“That’s a hell of a loss for our region.”
Despite a year of negotiations, meetings and even taking part in a parliamentary standing committee on public works, Mr Nelson still hasn’t seen a cent of what he is owed.
“We were told Hewatt’s would make two payments, although a lot less than what was owed to the contractors, but we have had nothing,” he said.
“We had a deed of company agreement under the Corporations Act with Hewatt’s following the second creditors’ meeting and they agreed to provide some funds after four and a half months and nine months.
“We’ve had nothing.
“We have called Lend Lease and heard nothing. We approached Defence who said it was nothing to do with them as they were not running the contract.
“We have been left high and dry.”
In January, Mr Nelson addressed a parliamentary standing committee on public works as part of the Air 9000 Phase 7 Helicopter Aircrew Training system (HATS), raising the issue about the Romeo project and how the HATS project again failed to protect contractors.
“I said there was a procedural flaw and once again there seemed to be no safeguards in the contract,” he said.
“The reply from the government and Defence was they had followed their procedures.
“I would have thought after what has happened those procedures haven’t worked and would need reviewing.
“But nothing has changed.”
Mr Nelson expressed concerns the new $700 million HATS project could go the same way as the Romeos.
“There has been no change, there is no formal protection for subcontractors,” he said.
“I won’t be throwing my hat into the ring for HATS.
“The Defence funding submission put forward for the project was about the economic stimulus and job creation for the area. That is virtually the same as what they said about the Romeo project.
“It’s a double edged sword. If I don’t put in for the job my subbies miss out. If I do, will we get paid?”
He said he was proud of the fact, with the support he has received locally, he was still trading and had paid every contractor he owed money.
