A Victorian state MP is demanding the government pay back the tradie victims caught up in the $4.2 million collapse of a lead building contractor.

Last month, news.com.au reported that Exel Infragroup Pty Ltd had plunged into liquidation owing $4.225 million to 83 creditors.

The Victorian-based business was the lead contractor for parts of the state’s Big Build rail project, in charge of the North East Line Upgrade at Lilliput and Balmattum in rural Victoria.

Wendy Lovell, the member for Northern Victoria Region, is now calling on the state government to fully reimburse the subbies left out of pocket.

“The action that I seek is for the minister to intervene and fund the full payment of all outstanding money owed to subcontractors for work on the state government’s northeast line upgrade to ensure subcontractors have confidence to participate in future government projects,” she said in a question tabled in the Victorian Parliament earlier this week, aimed at Jacinta Allan, the Minister for Transport and Infrastructure.

News.com.au previously revealed Synergy Traffic Management, a small Shepparton business with just 18 staff, had lost $63,000 in the wake of Exel Infragroup going under.

In her address to parliament, Ms Lovell also flagged another devastated creditor, CountryWide Asphalt in Wodonga, which has lost out on payments of more than $378,000 due to Exel Infragroup’s untimely demise.

The MP acknowledged this was a “significant amount” of money for CountryWide Asphalt “which impacts on its ability to meet its own financial obligations”.

At the centre of the issue is the fact that the liquidated company pocketed a hefty payment from the government for completing the project — but this was never passed onto subcontractors.

“It is unacceptable for the government to wipe their hands of responsibility to subcontractors by saying that Exel Infragroup was paid in full for work on the northeast line,” Ms Lovell said.

“The government’s own ministerial directions … require proof from a contractor that all subcontractors have been paid.”

Minister Allen has one month to respond to Ms Lovell’s requested action.

Indeed, an Australian Rail Track Corporation spokesperson told news.com.au “I can confirm we have no outstanding invoices, nor monies owed to this company”.

A VicTrack spokesperson also told news.com.au they had paid Exel Infragroup for the works carried out on the North East Line Upgrade, an entirely taxpayer-funded project.

“Exel Infragroup is responsible for managing its subcontractors,” the spokesperson added.

“We appointed Exel Infragroup to deliver the works following a competitive tendering process, in line with the Victorian Government’s Purchasing Board (VGPB) Guidelines.”

Ms Lovell previously told news.com.au that it was “unacceptable” that this was able to happen under the watchful eye of the state government.

Synergy Traffice Management’s operations manager, Callum Phillips, owed $63,000, previously asked news.com.au “our biggest question is where the hell did that money go?” he said.

In another bizarre turn of events, when news.com.au contacted the director of Exel Infragroup, he admitted he had no idea why the company had collapsed and that he didn’t know much about the business.

Wan Lioe Tan was listed as the sole director of Exel Infragroup in the liquidation documents.

“I know the company, but not in a very deep level, there are other people involved,” Mr Tan told news.com.au.

“We didn’t go well, I understand. I know the operation in general.”

When asked how he could only have a general understanding of a company where he was the sole director, he hung up the phone and did not respond to any more questions.

The business was a civil excavation firm that operated within the Exel group of companies.

This isn’t the first time a company under the Exel banner has collapsed recently.

A related entity called Exel Galaxy, which “operated in conjunction” with Exel Infragoup and provided NBN services to customers, went into liquidation in 2020, according to a creditor’s report.

The company went bust owing $5 million to several creditors.

Continue the conversation | alex.turner-cohen@news.com.au