Red Aguhar, one of the laid-off ELE workers from the Philippines, is living out of his car in West Auckland.
Video / Michael Craig
Deloitte has issued its first receivers’ reports on five companies in the insolvent labour recruitment hire business ELE from which around 1000 were sacked just before Christmas, revealing claims by creditors of $12.3 million.
Businesses in receivership are ELE Ltd, ELE Management, ELE Holdings, Tranzport Solutions and RISQNew Zealand.
Separate reports are out on each.
The biggest failure is ELE Ltd which has $10.8m claims. Secured creditor the BNZ is claiming $5.77m. Some claims from other secured creditors Carters Building Supplies, De Lage Landen, Bridgestone New Zealand and PlaceMakers Christchurch are yet to be confirmed.
Employees are owed $4.08m in pay and Inland Revenue $1.05m, resulting in preferential creditors being owed $5.1m, according to the report from David Webb, ELE’s receiver and manager.
The workers, who are migrants from the Philippines, are desperate for money from receivers at Deloitte. Photo / Carson Bluck
So the $5.77m secured creditor claim and the $5.1m preferential creditor claims add up to the $10.8m overall claims for ELE which is just one of the insolvent businesses.
Tranzport Solutions has claims of $955,000 of which secured creditors want $703,000 and preferential creditors $255,000.
“Management of the company identified the group would experience a liquidity shortfall by the end of January 2024,” Webb’s report on ELE said.
Following unsuccessful attempts by owner-director Brent Mulholland to get additional funding or sell the business, he asked the bank to appoint receivers, he said.
Mulholland had been co-operative in making all information available to Deloitte, the report said.
Brent Mulholland of ELE tried to sell the business, then the BNZ appointed receivers just before Christmas.
Receivers are realising money owed to the company, vehicles and other fixed assets.
ELE staff were on more than 10 sites nationally and their ability to remain in this country has been threatened because they were on working visas.
Meanwhile, another construction sector recruiter, Buildhub, went into liquidation on Friday with Gareth Hoole of Ecovis KGA appointed by shareholders. That company also hired migrant workers.
Carpenter Guillermo Fabello at the First Union meeting for those laid off from recruitment business ELE. He is pictured here at the December 21 gathering. Photo / Sylvie Whinray
Hoole said today he was still investigating matters but he had to let 60 to 70 people go on Friday because there was no work for them.
Many staff had come here from Chile and Bolivia to work for Buildhub, he said. Hoole is yet to issue his initial report but said wages and holiday pay were owed.
On the ELE situation, First Union general secretary Dennis Maga said up to many workers on Auckland and Hamilton building sites were forced out of rental accommodation but all up, about 750 Filipino workers were fired from 10 building sites.
Many fired staff could not afford weekly accommodation or monthly power bills, so to survive they had taken to their vehicles, having told family in the Philippines they could not send home money. The Philippines Embassy has been “providing some financial assistance”.
Mulholland last month pleaded for clients to pay money so workers could be paid, indicating some clients were taking advantage of the situation.
Rob Campbell, one of the Deloitte receivers, sent a letter in December: “We appreciate the effect this may have on your business and are also mindful of the many employees whose employment was required to be terminated.”
Mikee Santos, Union Network of Migrants’ co-ordinator, said people from Auckland to Christchurch were affected.
For the receivership to occur so close to Christmas was one of the worst blows, Santos said.
Many of the Filippino workers are Catholic.
In 2018, ELE won the Deloitte Fast 50 fastest-growing services business Wellington-Lower North Island award.
Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.
