Investigative Journalism and Learning Hub - SP52948 committee members unable to refute serious concerns about strata complex mismanagement, racism, discrimination, fraud, falsified documents, and financial problems

Welcome to the blog of NSW strata investigative journalism

Primary audience on the website are owners (current and previous), tenants, investors, and potential buyers in large strata complex SP52948. Attempts to get Waratah Strata Management to keep all parties informed has been ignored since 1 February 2017. Strata files are kept undisclosed and even events like mediation at Fair Trading NSW, NCAT case SC 20/33352, Police Events, and OLSC reports about professional misconduct of Solicitor Adrian Mueller are not provided to owners (current and previous), tenants, investors, and potential buyers in large strata complex SP52948. Committee members and Waratah Strata Management refused to offer assistance to these organisations.

Number of SP52948 owners, tenants, and investors expressed gratitude towards this website as that was the only way to gain access to lot of critical information, which is not available in minutes and notices of meetings, or on Waratah Strata website.

The rest of the audience is anyone who might be interested in problems with strata schemes in NSW...

This website does not have any desire or intent to add own comments and therefore it is up to anybody to make up their own conclusions based on evidence and statements by others who did it in public forums, in courts, or elsewhere. All files on this website were provided to Fair Trading NSW, Office of legal Services Commissioner, NCAT, Supreme Court, and Police. The same files were repeatedly sent to Solicitor Adrian Mueller, committee members and strata managers - silence is their response.

Public is voicing strong concerns about problems with Tribunals. Issues with strata complexes and dubious quality of services provided by those who should enforce laws are common and frequent - examples: NSW-Civil-Tribunal-failing-to-deliver-services

Solicitor Adrian Mueller created dangerous precedence in two CTTT/NCAT cases (SCS 12/32675 and SC 20/33352) which, based on Australian legal system, allow other parties to use as valid defence (legal precedents). CTTT/NCAT fully co-operated with the Solicitor and effectively rendered NSW strata laws useless, and even allowed Solicitor's reprentation of large strata plan SP52948 without having any evidence of being approved by owners corporation (in fact, Solicitor was not approved at any legally-convened meeting).

CTTT/NCAT actively supported Solicitor Adrian Mueller’s predictive behaviour, contempt of court, falsified documents, and insurance claims in two cases in 2012/2013 (SCS 12/32675 and SCS 12/50460, conducted by Tribunal member M. Harrowell) and 2020/2021 (SC 20/33352, conducted by Tribunal member G.J. Sarginson). The precedence means that all evidence of the Applicant can be ignored if the Respondent fails to attend Hearings.

Tribunal had full knowledge of the Applicant's submissions about Solicitor Adrian Mueller, including ones dated 8, 27 February 2022, and 22 June 2022, which they completely ignored.

Democracy should be the leading avenue for managing strata complexes. But, democracy requires high level of sense and ethics, and right for all owners to have full access to strata files in order to make informed decisions. And when that does not happen, how to proceed? One way is to educate public and rise awareness that license to be a strata manager is one of the easiest in any industry: Strata Community Australia (SCA) are offering a three-day course on qualifying to be a strata manager with no prior educational requirements (apparently educational requirements are fulfilled by completing the course).

Why Not Ask Waratah Strata Management And Committee Members?

  1. Owners in SP52948 can ask for access to unredacted files through these Waratah Strata Management and committee members who all had special access rights. Negative balance sheet in Admin Fund is one of regular events which should worry every reasonable person:

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

  2. In FY 2024 (financial year starting on 1 September 2023), SP52948 Admin Fund reached record negative balance of $239,193.82 on 11 October 2023:

    SP52948-negative-balance-in-Admin-Fund-11Oct2023.webp

    Not only this negative balance is shockingly bad for owners and investors, but created further high risks because SP52948 insurance premium due on 21 September 2023 was allegedly still not renewed as of 11 October 2023 (20 days after the due date):

    SP52948-expired-insurance-on-21Sep2023-not-renewed-as-of-11Oct2023

  3. In FY 2023 (financial year starting on 1 September 2022), SP52948 Admin Fund reached record negative balance of $203,914.85 on 27 October 2022 - day of Annual General Meeting, without disclosure to owners:

    SP52948-negative-balance-in-Admin-Fund-27Oct2022.webp

  4. Graph of serious negative balance in Admin Fund since 1 February 2017 when Waratah Strata Management took office to 5 October 2023 speaks for itself:

    SP52948-graph-of-Admin-Fund-negative-balances-from-31Jan2017-to-11Oct2023.webp

    SP52948-effects-of-Waratah-Strata-Management-on-Balance-Sheet-from-31Jan2017-to-11Oct2023

  5. For first time in history of strata complex SP52948, thanks to Waratah Strata Management, Admin Fund had continuous negative balance two whole FY 2023 quarters (1 November 2022 to 31 January 2023, and then from 1 February 2023 to 30 April 2023):

    SP52948-first-time-in-history-Admin-Fund-continuous-negative-balances-for-two-FY-quarters-Apr2023.webp

  6. For first time in history of strata complex SP52948, thanks to Waratah Strata Management, Admin Fund had almost continuous negative balance in third FY 2023 quarter (1 May 2023 to 31 July 2023):

    SP52948-first-time-in-history-Admin-Fund-almost-continuous-negative-balances-for-third-FY-quarter-Jul2023.webp

  7. Thanks to Waratah Strata Management, SP52948 Admin Fund had almost continuous negative balance in whole FY 2023 (1 September 2022 to 31 August 2023):

    SP52948-effects-of-Waratah-Strata-Management-on-Balance-Sheet-from-1Sep2022-to-31Aug2023.pdf

    SP52948-effects-of-Waratah-Strata-Management-on-Balance-Sheet-from-1Sep2022-to-31Aug2023.webp

  8. Committee members were notified about concerns of having financial problems and asked to inform all owners about it, but their decision at non-compliant committee meeting on 10 February 2022 shows how they acted:

    SP52948-extract-from-minutes-committee-meeting-with-instruction-to-ignore-Lot-158-correspondence-10Feb2022

    Due to poor planning and lack of funds, at Annual General Meeting on 5 October 2000, BCS Strata Management and committee members introduced special levies in amount of $100,000.00:

    SP52948-special-levies-introduced-due-to-lack-of-funds-and-proper-planning-AGM-5Oct2000.png

  9. On 3 February 2022, six current and previous committee members were asked to inform all owners about significant negative balances in common funds and assist NCAT in case SC 20/33352 and Office of Legal Services Commissioner case CAS005901 (latter case is for persistent and deliberate professional misconduct of Solicitor)

  10. SP52948 Balance Status on 17 October 2019, Admin Fund had negative balance of $131,852.25 on the day of general meeting without disclosure to owners, Fair Trading NSW, Office of Legal Services Commissioner, and NCAT.

    At general meeting in 2019, trying to prevent owners of Lot 158 to raise questions about finance and maintenance, Waratah Strata Management and committee members "approved" $150,000.00 to be spent on defamation case against Lot 158, without giving owners information that Waratah Strata Management and committee members already engaged Solicitor who prepared 13-page document before the AGM and tried to force Lot 158 into signing preposterous Deed. In financial statements for FY 2020, in spite of extensive legal involvement, Waratah Strata Management logged only $2,940.00 for legal costs.

    No owner has ever seen or received a copy of Solicitor's Standard Costs Agreement, nor was it provided to owners to vote at the general meeting

    There is one small technicality about the meeting, which Solicitor, Waratah Strata Management, and committee members could not defend in NCAT case 20/33352, but simply refuted it without evidence, coercing Tribunal member into accepting illegal meeting because it was "too difficult and complex to invalidate the decisions", in spite of NCAT having full knowledge that AGM 2020 was also non-compliant and could not have been accepted as valid to ratify Minutes of AGM 2019:

    SP52948-extract-from-Lot-158-Statutory-declaration-to-NCAT-case-20-33352-with-evidence-of-non-compliant-general-meeting-2019-which-did-not-satisfy-quorum-and-allowed-unfinancial-owners-to-vote.webp

  11. SP52948 Balance Status on 22 October 2020, Admin Fund had balance of only $14,411.82 (nine days before next collection of levies on 1 November 2020). This balance, on the day of general meeting on 22 October 2020, was not disclosed to owners, Fair Trading NSW, Office of Legal Services Commissioner, and NCAT.

  12. Waratah Strata Management and committee members were repeatedly requested to assist insurance brokers and insurance companies with:

    That the owners corporation acknowledges their obligation to provide/disclose to the insurer, either upon renewal or throughout the period of the policy, any item requiring disclosure under the policy including a Work, Health and Safety report, defects report and the like.

    No evidence that they complied with such obligations was ever found in strata documents.

  13. Waratah Strata Management and committee members were repeatedly requested to ensure proper work orders and engagement of contractors:

    That the owners corporation acknowledges that the managing agent will not issue a Work Order or engage any contractors for the provision of any goods or services, unless they have complied with the minimum requirements set out in the table below:

    Minimum requirements (as aligned to the recommended criteria as advised by Safe Work Australia)

    • Must be registered as a business for tax purposes in Australia.

    • Must have a minimum $10 million Public & Product Liability Insurance (in respect of each and every occurrence and unlimited in aggregate for any one period of cover).

    • Must have a minimum $1 million Professional Indemnity Insurance (where applicable).

    • Must have Statutory Workers Compensation Insurance for all employees or Personal and Accident Insurance as a Sole Trader.

    • Must hold all licences as relevant to services provided.

    • Must have an established Quality Management system (consultants only).

    • Must have an established Health & Safety Management system.

    • Must accept Terms and Conditions of engagement and Business Code of Conduct.

    • Must provide full warranties for work.

    Contractor: means a person or organisation that is engaged, on a temporary basis, to undertake a particular task and includes consultants who provide recommendations and/or specialist professional advice.

    Work Order: means a written order providing specific or blanket authorisation to a contractor to proceed with the provision of specific goods or services without further instructions.

    No evidence that they complied with such obligations was ever found in strata documents.

  14. Waratah Strata Management and committee members were repeatedly requested to ensure compensation insurance is in place if applicable:

    That the owners corporation confirm that it does NOT employ workers with total annual wages exceeding $7,500.00 and therefore will not require workers compensation insurance for the coming year.

    No evidence that they complied with such obligations was ever found in strata documents.

  15. Waratah Strata Management and committee members were repeatedly requested to ensure committee members are legally valid:

    That candidates for election to the strata committee disclose any connections with the original owner (developer), strata manager, or building manager in accordance with the Act.

    That candidates for election to the strata committee disclose any outstanding levies or benefits (monetary or otherwise) received beyond standard services that are not available to all other owners and tenants in equitable manner.

    No evidence that they complied with such obligations was ever found in strata documents.

  16. Waratah Strata Management and committee members were repeatedly requested to ensure OH&S and fire safety compliance:

    Safety Audit Report

    That the owners corporation review the safety audit report prepared by professional assessors and what actions have been taken to date and those yet to be undertaken and an updated report be obtained.

    SP52948-Ryde-Council-warning-to-Waratah-Strata-Management-about-fire-safety-breaches-13Feb2017

    On 1 March 2017, Lot 158 conducted joint audit of the complex with building manager and Waratah Strata Management. Many issues were uncovered and Waratah Strata Management sent the following concerns to the building manager on 7 March 2017:

    SP52948-Waratah-Strata-Management-warning-building-manager-about-fire-safety-issues-reported-by-Lot-158-7Mar2017

    Since 2017, Waratah Strata Management failed to comply with Motion 25.1 approved at Annual General Meeting in 2016 and declined to register Special By-Law that owners approved by overwhelming majority:

    SP52948-extract-from-Minutes-AGM-2016-with-Special-By-Law-for-Motion-25.1-never-registered-by-Waratah-Strata-Management

    No evidence that they complied with such obligations was ever found in strata documents.

  17. Waratah Strata Management and committee members were repeatedly requested to ensure proper Admin and Capital Works Funds were prepared as per SSMA 2015 Section 79:

    SSMA-2015-Section-79.webp

    No evidence that they complied with such obligations was ever found in strata documents.

    To illustrate the lack of proper planning, here is an example of a huge discrepancy between levies for SP52948 property with entitlement 47.00 (three bedroom apartment) in period 1998 to 2023 and Admin/Capital Works Funds (levies are artificially kept low in spite of dire needs for major upgrades and maintenance):

    SP52948-Lot-entitlement-47.00-levy-increases-1998-to-2023.webp

    To raise further concerns, SP52948 extract from minutes EC meeting on 23 September 2021 documents shortage of $1,515,541.00 in Capital Works Fund against the forecast in April 2017 that was allegedly approved without general meeting:

    SP52948-minutes-EC-meeting-23Sep2021-Capital-Works-Fund-shortage-of-1.5-millions

    Thanks to persistence of Lot 158, after many years, strata manager and committee were forced to stop using accrual financial reporting in September 2019:

    SP52948-finally-stopped-using-accrual-financial-reporting-at-committee-meeting-12Sep2019

    This email from Lot 158 shows the risk of lack of planning but Waratah Strata Management did not allow it to be shared with owners:

    SP52948-Lot-158-warning-about-1.5-million-deficit-in-Capital-Works-Fund-1Oct2021

    Annual general meeting was held on 28 October 2021, and no owner received email or printed copy of rushed updates to Capital Works Fund which simply delayed all major repairs, effectively made balance looked artificially positive:

    SP52948-waratahstrata.com.au-website-Documents-folder-part-1-14Oct2021. Agenda for AGM 2021 was dispatched on 7 October 2021 and BIV's updated Capital Works Fund plan was created a day earlier:

    10-Year Capital Works Fund assessement on 6 October 2021 but not presented to owners corporation to approve or vote at general meeting on 28 October 2021

    Even layman can easily find the problems with latest BIV report: SP52948-discrepancies-in-BIV-report-for-10-Capital-Works-Fund-in-2017-and-2021