Investigative Journalism and Learning Hub - SUMMARY NSW Fair Trading case 11204124 opened against Waratah Strata Management and other issues on 25Jan2025

From:	SP52948 owner
To:	Robert Crosbie, Heath Crosbie
CC:	Committee members: Stan Pogorelsky, Genelle Godbee, Ramesh Desai, Kathryn Cutler, Carlos Fornieles Montoya, Andrew Ip, Jeffery Wang
Subject:	SUMMARY NSW Fair Trading case 11204124 opened against Waratah Strata Management and other issues on 25Jan2025
Date:	25/1/24, 12:41

Good morning,

All owners need to be notified promptly.

1) NSW Fair Trading case 11204124 was opened this week against Waratah Strata Management for the following main issues (this is just the first of the legal cases).

BCB Insurance Broker and SUU Insurance was already updated to comply with requirement if and when notifiable circumstances have arisen, SP52948 must seek immediate and early advice from the insurance broker, with a view to notifying the insurers.

In period from October 2017 to November 2023, Waratah Strata Management failed to comply with Clause 21 of the Strata Schemes Management Regulations 2016 seven times, which requires that the accounts and financial statements of the owners corporation with budget above $250,000.00 must be audited before presentation at Annual General Meeting (AGM) in accordance with Section 95 of the Strata Schemes Management Act 2015. In spite of NSW Fair Trading ruling in case 11138875 on 17 October 2023 (which Waratah Strata Management hid from owners), Waratah Strata Management deliberately continued to ignore Clause 21 of the Strata Schemes Management Regulations 2016 at two general meetings in late 2023, where audited accounts were not provided to any owner before, at, and after the meetings when minutes where published: Annual General Meeting on 26 October 2023 and Extraordinary General Meeting on 30 November 2023. As Economos Auditor failed to co-operate with Chartered Accountants Australian & New Zealand in case PC - 003660, he was notified about being listed as accessory for non-compliance of SP52948 audits in January 2024.

False statement about last Annual General Meeting (AGM) at Strata Hub nsw.gov.au with risks of penalties for outdated and wrong information – Waratah Strata Management ignored concerns about non-compliance with Strata Schemes Management Amendment (Information) Regulation 2021 seven times since June 2023. Since June 2023 Waratah Strata Management has not taken any corrective action whilst charging SP52948 in amount of $678.18 for their work in FY 2023.

Waratah Strata Management failed to comply with SSMA 2015, Sch1, Part 10(1) at AGM 2023 and EGM 2023, where Lot 158 requested that owners corporation provides copies of administrative fund, the capital works fund and any other fund of the owners corporation (term deposits and trust accounts, and others as applicable), which have to be produced to the owner at least two days before the meeting at which the statements are to be presented. Of special interest is evidence of how Waratah Strata Management paid invoices from Admin Fund which had negative balance almost 100% of the time during FY 2023 and so far in FY 2024. If the money was borrowed from Capital Works Fund, Waratah Strata Management must have complied with SSMA 2015 Section 76. Waratah Strata Management hides from owners that Admin Fund balance is so bad that monthly salaries for building manager Uniqueco Property Services have been significantly delayed since November 2023, so much so that one monthly salary is still missing in balance sheet as of 22 January 2024.

Waratah Strata Management failed to comply with SSMA 2015 Section 182 for SP52948 document search three times: on 28 December 2023, 8 January 2024, and 15 January 2024.

2) For Admin Fund, approved balance at AGM on 26 October 2023 differed from one audited by Economos 46 days after due date by 74.04% ($10,652.86 vs $6,120.73); Waratah Strata Management orchestrated renewal of three-year contract with Uniqueco Property Services without valid tender and valid Motion at extremely high increase:

Waratah-Strata-Management-non-compliance-of-SP52948-Auditor-reports.html

Waratah Strata Management forged FY 2023 Auditor Report date of issue (published on 14 December 2023 but backdated on website to 31 August 2023):

SP52948-Waratah-Strata-Management-forged-FY2023-Auditor-Report-date-of-issue-14Dec2023.webp

3) AGM 2023 and EGM 2023 had lot of issues, including Motions which Waratah Strata Management prevented from being given to owners for voting:

SP52948-AGM-2023-dubious-invoices-24Oct2023.pdf

SP52948-AGM-2023-misconducts-and-risks-24Oct2023.pdf

SP52948-Motions-by-Lot-158-AGM-2023-short.pdf

SP52948-Motions-by-Lot-158-EGM-public-30Oct2023.pdf

SP52948-pending-legal-case-to-terminate-contract-with-Uniqueco-Property-Services-detailed-summary.pdf

4) On day of AGM on 26 October 2023, Admin Fund had negative balance of $242,432.81 in Balance Sheet, without disclosure to owners. In FY 2024 (financial year starting on 1 September 2023), SP52948 Admin Fund reached record negative balance (deficit) of $312,113.03 on 31 October 2023, and as of 24 January 2024 it was negative in amount of $270,221.23 without disclosure to owners:

SP52948-negative-trends-with-Admin-Fund-under-Waratah-Strata-Management.html

The financial problems are so bad that one monthly salary for building manager Uniqueco Property Services is still outstanding in accounting or not paid at all, in attempt to hide real status (attachment "SP52948-Uniqueco-Property-Services-monthly-salary-since-31Aug2022.png").

5) This little gem of expertise we have in forensic investigations deserves credits.

Waratah Strata Management deliberately mislead and lied to NSW Fair Trading in case 9761719 where Auditor’s report for FY 2017 was published for owners two and half years after due date, in incomplete form. Further more, there is an irrefutable evidence that such report was forged because audited accounts for FY 2018 and 2019 did not have any paid expenses for Mr. Robert Bates’ work in 2017:

SP52948-Auditor-Report-20Oct2017.pdf

SP52948-Robert-Bates-not-paid-during-whole-FY-2018-for-incomplete-FY2017-auditor-report-allegedly-signed-on-20Oct2017-but-not-provided-to-any-owner-for-next-two-and-half-years.webp

SP52948-Robert-Bates-not-paid-during-whole-FY-2019-for-incomplete-FY2017-auditor-report-allegedly-signed-on-20Oct2017-but-not-provided-to-any-owner-for-next-two-and-half-years.webp

SP52948-Waratah-Strata-Management-forged-FY2017-Auditor-Report-date-of-issue-12May2020.webp

6) Are owners paying for these shonky repairs?

Notice for 2024 fire safety inspections was published on 22 January 2024, just one week before its schedule, which most owners will miss again (due to Australia Day). That will create incomplete audits, which is typical for SP52948.

We collected lot of evidence of poor long-term OH&S and fire safety issues.

Video of damaged fire door 2 below Block A was taken on 3 December 2023 and then photo on 22 January 2024 showing that Uniqueco Property Services took no action:

SP52948-example-of-Uniqueco-Property-Services-maintenance-burnt-Block-A-fire-door-2-without-any-signs-for-fire-exit-3Dec2023.mp4

SP52948-year-2024/SP52948-Block-A-damaged-fire-door-photo-2-22Jan2024.webp

Security guard saw us taking photos of damaged property and panic followed. Next morning, the terribly unprofessional repairs were done:

SP52948-Block-A-shonky-repair-of-damaged-fire-door-photo-3-23Jan2024.webp

SP52948-Block-A-shonky-repair-of-damaged-fire-door-photo-4-23Jan2024.webp

7) In spite of significant deficit in Admin Fund, water waste is common occurrence as shown by examples on 15 September 2023, 13 November 2023, 29 December 2023, and 24 January 2024:

SP52948-negative-trends-with-Admin-Fund-under-Waratah-Strata-Management

SP52948-repetitive-water-waste-on-sprinklers-on-hot-day-15Sep2023 (video)

SP52948-waste-of-water-sprinkers-used-on-rainy-day-13Nov2023 (video)

SP52948-waste-of-water-during-hot-day-29Dec2023 (video)

SP52948-Block-B-waste-of-water-24Jan2024 (video)

8) On 20 January 2024, we "celebrated" four-month anniversary since large gym tree branch damaged fence panel towards Fontenoy Road. No repairs yet:

SP52948-damaged-external-fence-panel-towards-Fontenoy-Road-bus-stop-hidden-in-basement-photo-1-20Sep2023.webp

SP52948-missing-external-fence-panel-towards-Fontenoy-Road-bus-stop-photo-3-20Sep2023.webp

SP52948-missing-external-fence-panel-towards-Fontenoy-Road-bus-stop-photo-1-20Jan2024.webp

SP52948-damaged-external-fence-panel-towards-Fontenoy-Road-bus-stop-hidden-in-basement-20Jan2024.webp

9) In regards to other maintenance (including OH&S and fire safety compliance), there are many issues in the complex. They will be dealt with separately, once NSW Fair Trading case 11204124 is completed.

SP52948-ongoing-maintenance-problems-mostly-ignored-by-Waratah-Strata-Management.html

SP52948-continuous-delays-with-fire-and-OHS-problems.html

Regards,

Concerned citizens