Russell-Smith racked up more than $5800 in company credit card charges for "entertainment", according to a report released by the business' administrator.
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The report claims bank statements between October 2015 and September 2016 showed charges relating to food, gym fees and cinema expenses.
Russell-Smith went into voluntary administration on September 22 and is believed to owe nearly $9 million to creditors and $3.2 million to the Australian Taxation Office.
The company's four credit cards were also used for $25,737 in travel and $15,591 in dry cleaning fees, medical expenses, retail purchases and traffic infringements.
More than $14,000 was used for transactions relating to another company run by the former director of Russell-Smith and an unknown transaction of $292,507 was recorded on August 8 this year.
The report also revealed the current director Peter D'Alfonso, who was appointed less than two weeks before the company went bust, received a payment of $20,000 in "director fees".
The company had offices across the state and at least 20 workers were made redundant as a result of the administration.
More than $640,000 in unpaid employee entitlements is believed to be outstanding, including nearly $87,000 in unpaid superannuation contributions and more than $200,000 in unpaid annual leave.
The former director, Prasanga Shiromon Kingsley De Silva, put forward a proposal last week for a Deed of Company Arrangement, which could see Russell-Smith avoid liquidation.
Communications, Electrical and Plumbing Union Tasmania state organiser Mick Anderson said it was "beyond a joke".
"[It's] simply a way to try and avoid repercussions of liquidation and personal responsibility," Mr Anderson said.
"[There are] untraced withdrawals of hundreds of thousands of dollars at the same time as they were lying to workers about their entitlements.
"Another unnecessary delay of at least another month for workers to access [their entitlements], they can only do so when liquidation occurs, that money is needed by hard working Tasmanian's to pay their bills and spend it in their communities."
Jirsch Sutherland administrator Stewart Free said the DOCA proposal would be assessed and a creditors meeting would be held in Hobart on December 1.
An Australian Securities and Investments Commission spokeswoman said they were are unable to “comment on or confirm the existence of any enquiries ASIC may be making into particular companies”.
Prasanga Shiromon Kingsley De Silva and Peter D'Alfonso were contacted for comment.
Melissa Mobbs
A journalist with more than a decade of experience, Melissa Mobbs currently works as the Deputy Editor for The Examiner Newspaper in Launceston, and has a strong background in reporting on crime and the justice system. Send tips to Melissa.Mobbs@examiner.com.au or on Twitter via @melissamobbs.
A journalist with more than a decade of experience, Melissa Mobbs currently works as the Deputy Editor for The Examiner Newspaper in Launceston, and has a strong background in reporting on crime and the justice system. Send tips to Melissa.Mobbs@examiner.com.au or on Twitter via @melissamobbs.
