A major and ongoing investigation into MA by this masthead over the past two months has exposed many of these issues and revealed how the firm has faced sustained scrutiny from authorities and liquidators. Ahuja has also been accused of being a serial sex harasser.
Despite the problems, MA won lucrative contracts with blue-chip companies including Coles; government agencies such as the Australian Criminal Intelligence Commission; several AFL clubs and major sporting events; elite schools and universities; and state government infrastructure projects in NSW and Victoria.
The Keilor Park headquarters.Credit: Penny Stephens
“Many of these clients didn’t care about the suspicion MA was built on a rotten model that rips off workers and the ATO,” a veteran security source told this masthead. “They hired it [the company] because it was cheaper than other security providers.”
In a statement sent to this masthead, insolvency practitioners Glen Kanevsky and Jason Tracy confirmed they had been appointed administrators of MA and were now overseeing “a significant number of redundancies”.
The true number of security guards and cleaners impacted may not be known for weeks as MA obscured the true size of its workforce via the use of subcontractors.
Credit: Instagram
“We recognise the seriousness of this situation for the 1700 employees whose roles are directly affected,” Kanevsky said.
“We are engaging with the Fair Entitlement Guarantee (FEG) team within the Department of Employment and Workplace Relations to ensure employees receive the support they need regarding their entitlements. Further communication to staff will be provided by the Alvarez & Marsal team as the administration progresses.
“We are investigating the circumstances that led the company to this point, including obtaining information from founder and director Micky Ahuja.”
On Tuesday, security firm Allied, led by businessman Damian Black, arrived at MA’s Melbourne headquarters having struck what acting MA chief executive James Reid said in a statement to staff was an “in principle agreement … to support the ongoing servicing of customer contracts”.
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Reid is a former senior executive at the Victoria Racing Club who was headhunted by Ahuja after MA won a contract to supply guards to the VRC’s spring racing carnival and Melbourne Cup. Reid was appointed to the acting CEO role on December 11, when Ahuja suddenly resigned in response to allegations he sexually harassed vulnerable women, including an employee.
Reid did not respond to calls from this masthead.
But Black said his firm would seek to manage MA’s contracts to ensure guards who are re-employed will be properly paid. He said it was too early to comment on whether the subcontractor network used by MA to employ many of its guards faced the same issues as MA.
In a statement, the administrators said they were “evaluating a range of options to preserve continuity of services and future employment opportunities wherever possible. This includes fielding enquiries from a number of parties that may be interested in acquiring the company’s assets”.
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Ahuja did not respond to phone calls and text messages. Sydney-based crisis manager Max Markson refused to comment on Tuesday after becoming the third public relations adviser engaged by Ahuja since the scandal about MA broke in November.
This masthead’s recent reporting about MA’s suspected misconduct has prompted a growing number of its prominent clients, including the Melbourne Football Club, the University of Sydney and property giant CBRE, to sever ties with the group.
Earlier this month, this masthead also revealed allegations that Ahuja was involved in sexual harassment, bullying and offering women cash in exchange for sex.
Ahuja has denied all allegations of misconduct involving women and dismissed the reports of other improper behaviour involving MA as false.
At the company headquarters on Tuesday. Credit: Penny Stephens
The Albanese government has faced mounting pressure over the continuing engagement of MA and its subcontractors by Commonwealth organisations.
Along with the company facing a demand by tax authorities, it has also been previously revealed that MA Services Group had a previous business relationship with a labour-hire firm owned by a bikie gang boss. MA personnel previously attempted to cover up their role in an ongoing and controversial operation involving a private security force sent to the Pacific island of Nauru to guard exiled Australian immigration detainees.
Spokesmen for Coles and Kmart assured customers and staff they had taken steps to ensure safety and there was no impact on operations as they transition to a new security company.
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