More than a dozen Wagga businesses and subcontractors claim they are owed almost $180,000 for work carried out on a block of NSW government social housing units.
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Construction on the $1.47 million project in Wagga's Spring Street does not appear to have progressed since the Sydney-based contractor behind the project, Matrix Group Co, entered administration in late October.
Wagga tradespeople complained weeks earlier that Matrix had not paid them for work constructing the two-storey block of four units, which had been funded by the NSW government.
A report prepared by Matrix's administrator, Shumit Banerjee of Westburn Advisory, has identified about 260 unsecured creditors across NSW and Victoria, including 13 in Wagga who claim to be owed a total of $177,067.
The largest unsecured creditor in Wagga is a plastering subcontractor allegedly owned more than $51,000, followed by an electrical contractor at just under $46,200, a glass and aluminium supplier at just over $41,700 and a welder at about $22,900.
Wagga solicitor Kevin Foley, who is representing one of the subcontractors in the claim for payment from Matrix, said it was his view that "the government owes a duty of care to all the subcontractors".
"It's a disgrace; the government is responsible as they let the contract out to a company that never should have had it," he said.
Matrix's net debt has been estimated at $2.315 million after weighing its assets and debtors against $3.9 million owed to creditors.
A NSW Land and Housing Corporation spokesperson said the government was looking for a replacement builder to complete the Spring Street project within the next six months.
"As this remains a police investigation, no further comment can be made at this time," the spokesperson said.
Wagga-based Nationals MLC Wes Fang said he would raise the matter with the new Minister for Homes, Anthony Roberts and Minister for Lands, Kevin Anderson.
"We need to ensure the department follows through with not only completing the project, as it's vital for Wagga, but with doing what they can under the Matrix contract to make sure subcontractors are looked after in the process of liquidating the company," Mr Fang said.
Wagga MP Joe McGirr said he had asked the previous minister for an independent review into how Matrix was appointed to the Spring Street project
"I understand a review is being done by the Land and Housing Corporation. I will continue to pursue this issue with the government this year," Dr McGirr said.
"It concerns me greatly that hard-working subcontractors and small business operators could be left out of pocket after accepting work, in good faith, on a government-funded project."
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