Security Firm Chief Relocates to Dubai Amidst Multi-Million Dollar Loan Investigation
Micky Ahuja, the chief executive of Australian security firm MA Services, has relocated to Dubai. This move comes amidst an ongoing corporate investigation into millions of dollars in loans he received from the company prior to its collapse.
Administrators are pursuing nearly $13 million in loans issued by MA Services before its pre-Christmas collapse, including at least $4.8 million directed to Ahuja's personal accounts.
Administrators are pursuing nearly $13 million in loans issued by MA Services before its pre-Christmas collapse, including at least $4.8 million directed to Ahuja's personal accounts.
The firm also has a $19 million tax debt and owes at least $20 million in superannuation and entitlements to thousands of its security guards across Australia.
The Investigation Unfolds
Preliminary inquiries by administrator Jason Tracy of Alvarez and Marsal suggest Ahuja may have breached his "statutory duty not to trade whilst insolvent," an allegation warranting further investigation.
Preliminary inquiries by administrator Jason Tracy of Alvarez and Marsal suggest Ahuja may have breached his "statutory duty not to trade whilst insolvent," warranting further investigation.
Allegations of Misconduct and Lavish Lifestyle
Prior to the company's collapse, Ahuja maintained a lavish lifestyle. Company insiders claim that the actual amounts of unpaid wages and superannuation, particularly for MA's largely migrant workforce and the Tax Office, are likely significantly higher than reported.
This is attributed to MA Services allegedly operating through a network of front companies to obscure suspected staff underpayment and tax evasion.
This is attributed to MA Services allegedly operating through a network of front companies to obscure suspected staff underpayment and tax evasion.
Company Collapse and Recovery Efforts
Administrator Jason Tracy is actively pursuing Ahuja to recover funds from suspicious transactions and is proceeding with the firm's liquidation. This follows the dismissal of several thousand employees before Christmas. Tracy's report to creditors recommends the firm's dissolution due to insolvency.
The company's inability to pay its debts was primarily triggered by a Tax Office investigation revealing unremitted millions in GST.
Tracy has issued a demand for repayment of nearly $4.8 million in personal loans to Ahuja. If Ahuja does not repay these funds, he could face bankruptcy or have his properties seized and sold.
If Ahuja does not repay these funds, he could face bankruptcy or have his properties seized and sold.
Additionally, Tracy is investigating unsecured loans totaling at least $8.29 million to companies linked to Ahuja. Investigations also include dozens of company cars reportedly transferred to various parties without consideration or in lieu of alleged payments.
Broader Industry Impact
The collapse of MA Services initiated a significant crisis within Australia's private security industry. Over 1,500 guards working for major retailers and government clients were abruptly told to cease work.
The Australian Taxation Office (ATO) was also investigating MA's subcontractors for unpaid taxes, suspecting a large-scale tax fraud scheme. The ongoing investigation raises questions about the oversight practices of corporate, sporting, and government clients who contracted MA Services despite prior scrutiny of the firm.