by
Journalist
Sydney
The flamboyant former deputy mayor of
Sydney’s Auburn, Salim Mehajer has been banned from managing corporations for
three years to protect the public from his “incompetence” after the corporate
regulator found his business conduct “lacked commercial reality”.
In an unusual situation, the Australian Securities
and Investments Commission this morning announced it had banned Mr Mehajer in
November last year — three months after his opulent wedding drew attention to
allegations of corruption at Auburn Council — but he had appealed the decision
and also successfully obtained court orders suppressing disclosure of the
banning order.
On August 19 the Administrative Appeals Tribunal
upheld ASIC’s decision to disqualify Mr Mehajer and found the property
developer had “adopted a cavalier approach” to managing two of his failed
companies.
Those companies were SM Property Developments and
SM Engineering and Constructions, which owed over $1 million to the Australian
Taxation Office as well as money to other creditors.
ASIC’s banning orders in November last year came
after an investigation by The Australian uncovered alleged serious
irregularities with the way those companies had been operated.
The AAT decision upholding ASIC’s order was itself
subject to a suppression order which expired midnight last Friday night.
It was immediately unclear why courts would grant
suppression orders over such information to the detriment of transparent
processes.
On Saturday, hours after the suppression order
expired, Mr Mehajer posted to Instagram a picture of a ship on Sydney Harbour
with the words “Goodbye Australia”.
“Will be taking off to pursue my dream challenges,”
he wrote, along with the words “I’ll be back”.
The apparent departure comes a week after the
public inquiry into Auburn Council wound up hearings.
The entire Auburn Council was sacked in February
ahead of the inquiry, which was brought about following concerns over the close
links between property developers and Auburn councillors.
ASIC found Mr Mehajers “inability to manage
corporations to the standard expected of him” caused the two property
development companies to collapse.
He had failed to ensure SM Project Developments
“maintained adequate financial records” and to ensure it lodged legally
required returns with the ATO, and only provided required information to the
company’s liquidator “after ASIC took criminal proceedings against him”.
“ASIC also found Mr Mehajer’s conduct lacked
commercial morality in that he allowed SMPD to collect GST of $315,192 from the
sale of townhouses but failed to remit it to the ATO,” ASIC said in a statement
this morning.
The transfer was not illegal but is understood to
have drawn the attention of authorities because of the controversy surrounding
Mr Mehajer.