Modco Residential: Building regulator launching disciplinary action against collapsed construction company

Regulators are launching disciplinary action against failed builder Modco Residential as they rev up pursuit of the business more than a year after it collapsed. The Building Services Board is planning to haul Modco before the State Administrative Tribunal to scrutinise the controversial construction company’s operations. But the Federal Court will first need to green-light the plan because the business is now in the hands of liquidators from Hall Chadwick. The SAT disciplinary proceedings will be lodged under the Building Services (Registration) Act, according to a document obtained by The West Australian from the court. Yet the plan stalled at its first hearing on Tuesday because the regulator had not served Hall Chadwick with the papers. It will be before the court again next week. Modco was linked to high-profile Perth glamour couple Yusuf Khan, the building supervisor; and Cynthia Lu, director of Ms Lu Holdings, which controlled shares in the business. They did not respond to a request for comment on Wednesday. The second major shareholder was Clancy Property Consulting, owned by Modco’s director Damien Clancy. He could not be reached for comment. Modco entered administration in July 2023 and was later put into liquidation. In a November 2023 report, Hall Chadwick estimated debts of about $4.4 million. About half of that cash was owed to Ms Lu Holdings. Mr Khan and Ms Lu issued a statement at the time of that report saying “the company owes a formal apology to those that have been impacted; big or small due to not being able to fulfil the obligations which it had set out to do”. But it has been an eventful year for Mr Khan since. His Perth City Enterprises — which ran the Library Nightclub — was also sent to liquidation amid a debt to the Australian Taxation Office.