The former director of Russell-Smith has hit back at claims the company owes almost $9 million to creditors.
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The business went into voluntary administration in September and is also believed to owe more than $640,000 to employees.
Prasanga Shiromon Kingsley De Silva said he “disputed” the $9 million debt and claimed parts of a recent report into the company’s affairs were “incorrect”.
“The actual process of administration allows any individual to lodge an unproven or speculative claim,” the former director said.
The report, released by Jirsch Sutherland administrators last month, also stated Russell-Smith charged almost $6000 to company credit cards for “entertainment”.
But Mr De Silva said the charges related to employee bonuses “provided to employees who achieved internal sales targets”.
He also said $25,737 in travel expenses and $15,591 in dry cleaning fees, medical expenses, retail purchases and traffic infringements were “entirely proper”.
“The use of company credit cards to pay business expenses … occurred across the organisation within the required guidelines.”
The company was said to have been trading while insolvent from at least January, however Mr De Silva said he rejected the claim.
Jirsch Sutherland administrator Stewart Free said the creditors report was a result of an independent investigation.
“It is therefore not for directors or former directors to add their own commentary to that report,” Mr Free said.
“I intend to address any material allegations from the former director regarding the conduct of this administration in my next creditors report, but note that I am satisfied that all due process has been followed in my administration of this matter.”
A report is expected to be issued to creditors on November 23 and a meeting will be held in Hobart on December 1.