Parramatta Eels, Tax Office and widow chase property developer Dyldam
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Kate McClymont
The bitter dispute between the Parramatta Eels rugby league club and its former major sponsor Dyldam will be played out in court after the club launched legal action in the District Court over Dyldam's alleged failure to meet its financial commitments.
The controversial developer, recently announced as a major sponsor of the Central Coast Mariners, is being pursued by the Australian Taxation Office after investigations by insolvency expert Stephen Hathway found what he told Fairfax Media was an attempt to mislead the ATO by deliberating misstating the true nature of financial dealings within the Dyldam empire.
Dyldam does not want to pay their Parramatta contract because of bad headlines. Photo: Getty Images
Dyldam, one of the country's largest privately owned residential developers, has splashed out close to a billion dollars on property acquisitions over the past two years.
Only recently the developer paid an estimated $70 million buying the Thomson Ford site in Parramatta from Roosters' supremo Nick Politis, and in July it paid $175 million for a St Leonards development site.
Maria Fayad and her husband Sam Fayad. Photo: Facebook
Meanwhile, the Dyldam dollars have not been flowing into the Parramatta league club's coffers. For the past five years, Dyldam has been the club's major sponsor in a deal estimated at $1 million a year.
Over the years, club officials have regularly complained about the tardiness of Dyldam meeting payment schedules.
It is understood Dyldam recently tried to get a discount on the money it owes the club, claiming it had suffered reputational damage over its association after a year of damaging headlines ranging from salary cap scandals to board sackings.
The club's temporary administrator Max Donnelly of Ferrier Hodgson rejected these claims and the club filed a statement of claim against Dyldam in the District Court on October 4. It is understood the developer still owes more than $250,000.
Carol Khattar with her late husband George Khattar. Photo: supplied
The company is claiming it is too cash-strapped to pay out Carol Khattar, the widow of George Khattar, who owned 25 per cent of Dyldam. Mrs Khattar is embroiled in a Supreme Court stoush in an attempt to get her husband's siblings, who now own Dyldam, to finalise the estate of her late husband, who died in 2010 aged 44.
The development company is also being pursued by the ATO over millions of dollars in unpaid GST.
A Fairfax Media investigation, prompted by the mysterious discovery of a body in a bathroom, previously revealed that more than a dozen of Dyldam-related companies run by Joe Khattar and his brother-in-law Sam Fayad had gone bust, owing the ATO millions.
There is a pattern to their bad luck. Upon completion of a development, having paid Dyldam handsomely for construction services, several apartments are transferred to their family and friends and shortly after the company goes down the gurgler owing the Tax Office money.
Before the corporate undertakers are called in, the two men exit as directors and a group of women are installed to run the troubled entities.They include Mr Fayad's wife Maria, who is the sister of Joe Khattar, and Joe and Maria's sister Sultaney Khattar.
Mrs Fayad was appointed the sole director and secretary of Plaza West just before it went bust in late 2012 owing $28 million, including almost $5 million to the ATO. Plaza West had built an apartment complex and shopping centre, now called Entrada, in Parramatta.
The ATO is currently funding Mr Hathway of insolvency firm Helm Advisory in his legal action to recover money from Plaza West after irregularities were uncovered in money movements between related companies.
Mr and Mrs Fayad and Mr Khattar did not respond to Fairfax Media's calls.
Replies
Farken lebbos and dodgy financial deals go hand in hand.Good luck to the club getting a cent more out of these kents.
I'd love to know exactly how much they paid his show in endorsement fees .
I wonder how close the whole empire was with the board that was elected in 2009, seems somehow a bit of a coincidence that they became sponsors around 5 years ago, and things seem to have gone down a bit since the two happenings took place.
On a side note, its not unusual to see who the reporter is either, but I wonder if she's doing anything in regard to player agents and the NRL.
I think Dyldam did themselves a disfavour with the massive development at the old go cart site in Northmead. They obviously have connections in the Hills Shire Council also. If they have had question marks over them for so long, I actually can't believe we have persisted with them. Jobs for the boys by the looks of it.
I agree Poppa, Max will sort them out and the threat of the ATO should make them more agreeable. Hope we can get a new business partner which sits in with the new Parradigm. A business that is strong an honest.
What a dog of an organisation.
I'm so glad we are no longer associated with them.
Forget about the ATO or the Eels - they can handle the loss - it's the poor old subbies that cop the brunt of these crooks dealings. They fund the workers, and the work, then don't get paid. Families often lose the lot due to shonks like this.
It's a f*****g disgrace.
Can't wait 'till we have announced a new, decent sponsor.
Kram, the last link in every chain is what usually carries the load and ends up being broken same with ordinary workers who get the blisters for the pasty handed pen pushers and execs. None of the later get their hands dirty and blame on those below. Worst part is that any that have interests in the company who are generally well off financially generally tend to come out ok while the end of chain workers get next to nothing let alone so called entitlements.
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