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Thank you all for your thoughts.
Firstly i don’t think there was any fraud by the previous strata manager just a lack of proper bookkeeping and oversight. Secondly and apologies if this was not clear the poor bookkeeping started a number of years ago and ended when a new strata managing agent took over recently. Incidentally this is a compulsory strata manager brought in to try and resolve such issues and kick start the budget. You guessed it no money in the bank.
A soft touch approach with an attempt at reconciliation of the various records was attempted last year before the new strata manager came in but it didn’t work, mainly because of a lack of general cooperation. I don’t agree with the amnesty we need the money.