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‘Serious gross negligence, accounting fraud or blatant lying’ behind engineering firm collapse

Engineering firm RCR Tomlinson has gone into administration after failing to recover from a disastrous solar energy project.

A statement from RCR interim Chief Executive Bruce James on Thursday morning said administrators from McGrathNicol have been appointed.

Mr James said directors took the step because the company had not been able to secure extra funding.

But what’s bizarre is only three months ago, the firm raised $100 million from its shareholders…

And in 2017/18, the company raised close to $2 billion in revenue.

One of the company’s largest shareholders is investment firm Allan Gray and Managing Director Simon Mawhinney says “shareholders are being kept in the dark”.

“It is staggering, a very quick turn for the worst.

“It almost defies belief. There’s either been a serious gross negligence, accounting fraud or blatant lying that’s happened.

“It was only 22 days ago that the board and other key management members fronted shareholders at the AGM and said everything was tickity boo and things were progressing.

“So this is very surprising from our perspective.”

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Litigation firm Quinn Emanuel Urquhart & Sullivan has filed a class action proceeding against RCR in the NSW Supreme Court.