Strata Community Association – the state’s strata managers’ professional body – has suspended the membership of industry giant Netstrata following Fair Trading’s announcement yesterday that it will be pursuing criminal charges against the company and its boss Stephen Brell.

Ironically, Brell was president of SCA (NSW) when the ABC TV Four Corners episode The Strata Trap exposed the first allegations of hidden insurance commissions and other breaches of its legal responsibilities.

SCA (NSW) had only recently achieved professional status for strata managers – akin to accountants or lawyers – when the Netstrata scandal broke.

Since then strata managers across NSW and elsewhere in Australia have been under serious, often unwarranted scrutiny both by government agencies and their clients, and new consumer protections have been written into strata laws.

The whole sorry business has clearly shaken the strata management industry and SCA seems to have acted promptly to get ahead of the story but insists that it is not making any assumptions about the outcome of the court action. This is their statement:

SCA (NSW) is aware of the criminal proceedings commenced by NSW Fair Trading against Netstrata. As the matter is now before the Court, it would be inappropriate for the Association to comment on the allegations or the legal proceedings, which are yet to be determined by the Court.

The SCA (NSW) Board has taken the decision to suspend Netstrata’s membership until the proceedings have concluded or an outcome is known. The Board remains committed to conducting this process fairly, independently and in accordance with the principles of procedural fairness and natural justice.

No conclusions have been reached, and no inference should be drawn as to the outcome of either the Court proceedings or the Board’s consideration. SCA (NSW) expects all members to comply with the law, uphold the Association’s Code of Ethics and meet the professional standards expected of our profession.

Protecting consumers, maintaining confidence in the strata profession and supporting high standards of professional practice remain central to SCA (NSW)’s purpose. SCA (NSW) will provide further comment only where appropriate as the legal process progresses.

Flat Chat is not assuming or implying Brell or Netstrata’s guilt or innocence of the allegations and looks forward to the issues being aired in court with a just and fair resolution being achieved.