Liquor store companies get assets frozen

File photo / NZ Herald

The assets of three liquor store companies have been frozen after they were ordered to pay more than $200,000 in penalties and unpaid wages.

The Employment Court made an order to freeze the assets of Civic City Limited, Rum Limited and 123J Limited, all owned and directed by Ala'a Bader.

In a determination by the Employment Relations Authority last month, the companies were jointly ordered to pay more than $96,000 in outstanding wages and holiday pay, $60,000 in penalties for breaches of the Minimum Wage Act 1983 and Holidays Act 2003, and $55,000 penalties for breaches of the Employment Relations Act 2000.

The Labour Inspector took the claim representing the interests of 11 Indian students who worked at one or more of the companies in 2011.

The companies have since filed a challenge to parts of the determination.

The Labour Inspector has since became aware that Symonds Liquor, operated by Rum Limited, has been sold and its liquor licence transferred to another company.

Another store, Sky Liquor, had changed its name, although the licence was still held by Mr Bader.

Mr Bader, a citizen of Jordan, left New Zealand for Thailand on September 21, and is not known to have returned to New Zealand.

However, when a Labour Inspector called at one of the companies' registered address in Ponsonby, a man at the property identified himself as Ala'a Bader.

The companies had advised the Labour Inspector they intended to apply for a stay of execution of the authority's orders, and were working with an accountant to finalise a statement of position.

However they did not advise the inspector or authority that one of the businesses was being sold.

The court found there was evidence of an intention to dissipate funds, including a statement made to the new owner of Symonds Liquor that the funds from the sale would be sent to Jordan.

The court granted an order to freeze assets of the companies until Monday [November 4]. At a hearing at the employment court in Auckland on Monday the orders were extended for two weeks.