Families dealt fresh blow in collapse of Victorian building company Montego Homes

Dozens of Victorian families have been dealt a double blow as part of the latest collapse in the state’s building crisis.

South Melbourne builder Montego Homes went into voluntary administration on January 15, with Sam Kaso and Shaun Matthews from advisory firm Cor Cordis appointed to restructure the business.

WATCH THE VIDEO ABOVE: 60 families dealt with double blow in Victoria’s building crisis.

Watch the latest news and stream for free on 7plus >>

A fresh blow has now been dealt to more than 60 families caught up in the collapse, with it revealed the building company failed to take out mandatory insurance before accepting deposits.

The families are not eligible to receive financial assistance through the government scheme set up to help victims of the Porter Davis Homes collapse.

Paul Elsharouny is an experienced construction project manager, but did not see this collapse coming.

“I was in disbelief because I didn’t think that this would happen to me,” Elsharouny told 7NEWS.

“When you see it happening to other people, you say ‘oh that’s far from happening to me’.”

Paul Elsharouny is a victim of the Montego Homes collapse. Credit: 7NEWS

“You cannot sue them, you cannot claim your money back from them,” Elsharouny said.

“And when you approach government (for) support, the only reply you get back is ‘sorry we cannot help you’.”

Another victim, Chantelle Gizycki, estimates customers “would be out of pocket about $15,000”.

“I do know of one lady, she actually put down a deposit for two houses with them, so she’s out of pocket $30,000 with them now,” she said.

If Montego is liquidated, customers are asking for refunds from the same scheme available to victims of the Porter Davis collapse, and 13 other companies between July 2022 to June 2023.

The fund is open to who also paid deposits on projects yet to start, and refunds five per cent of deposits for homes yet to start.

South Melbourne builder Montego Homes went into voluntary administration on January 15 Credit: 7NEWS

In response to questions about Montego Homes’ customers, the state government reiterated that builders are required by law to take out insurance before they accept a deposit.

In the past 18 months in Victoria, more than a dozen companies are alleged to have flouted that rule.

State opposition leader John Pesutto said the government was sitting on its hands.

“There aren’t enough legal protections and (MP) Danny Pearson and (Premier) Jacinta Allan have been on notice about this for a long time,” he said.

“For well over a year and a half.”

-With Emma O’Sullivan

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *