Police probe allegations of fraud as insolvency process begins
Instead of looking forward to a new financial year, Flynn Transport’s trucking business is in liquidation with its books being poured over by accountants and New South Wales Police and all assets on the block.
Regional media quoted founder Tony Flynn that “legacy tax debt” was involved and a former employee was under investigation.
Police have confirmed the local branch is examining allegations.
“Officers attached to Richmond Local Area Command are investigating an allegation of fraud at a transport company in Ballina,” NSW Police spokesperson tells ATN.
The alleged irregularities appear to have undermined the company, headquartered at Alstonville between Ballina and Lismore, that, in common with some other transport and logistics firms, is part of a group of three related entities.
The two said to owe creditors are Flynn Transport (NSW) Pty Ltd and NSW Employment Company Pty Ltd, reportedly at $1.5 million and $1 million respectively.
They operate under controlling entity Flynn Transport Pty Ltd.
The Queensland branch of Worrells Solvency and Forensic Accountants is handling the financial side and senior company partner Morgan Lane tells ATN the Flynn Transport business “is no longer trading, with all assets to be sold”.
Morgan adds that the second ranking security creditors appointed receivers and managers to Flynn Transport (NSW) swiftly first ranking security creditor National Australia Bank appointing its own receivers and managers and Worrells is working with both those sides.
It is understood the company lost more than mostly driver employees on Monday and, while entitlements may be covered, a reported $800,000 in superannuation is unlikely to be.
The Northern Star newspaper quoted truck drivers as saying they were owed superannuation of between $15,000 and $40,000 each.
The development brings to a halt 27 years of operation for the company founded by Tony and Beth Flynn that boasted a fleet of 40 Isuzu rigids and Kenworth prime movers pulling refrigerated units and tautliner trailers and only last October bought premises in the Russelton Industrial Estate in Alstonville.
No time frame has been identified for the liquidation process though it is likely to take months to resolve.