Major Queensland tow truck company accused of facilitating the illegal sale of impounded car
Updated
A tow truck company that holds a major contract with the Queensland Police Service is being accused of facilitating the illegal sale of an impounded car.
Tow.com.au has an exclusive contract with police to tow and impound cars under the state's anti-hooning legislation.
The ABC understands the contract still has several years to run.
The company itself owns few tow trucks or storage yards across Queensland, instead sub-contracting the majority of the tows and impounds to other tow companies around the state.
The previous LNP government introduced the anti-hoon laws in November 2013 in an attempt to crack down on dangerous driving.
Tow.com.au is being accused of knowingly transferring an encumbered car to Brisbane-based City Motor Auction Group for sale.
The company has contracted City Motor Auction Group as its exclusive sales agent to dispose of all forfeited vehicles impounded under the laws.
Two of the directors of the Brisbane-based auction house are also listed directors of Tow.com.au.
The ABC is not suggesting in any way that those directors have been involved in the illegal sale of any cars or of any other improper dealings.
Car dealer hit with storage bill
Car dealer Peter Wyer owns Bay Motors in Deception Bay, north of Brisbane, and a car finance company called GW & MH Marshall.
In October 2014, Mr Wyer was notified by Tow.com.au that a car which he sold and provided a loan for had been impounded under the anti-hooning laws.
The car was forfeited to the state in early October 2014 after the driver, who still owed Mr Wyer $6,000 for the car, failed to reclaim it.
Soon after, Mr Wyer was hit with a big storage bill.
"I said, 'I didn't break the law, I've just got a financial lien over the vehicle because we had it on finance to the people who did break the law'," he said
"They said, 'tough, pay the $3,400 or you don't get your car back'."
A financial lien means the car cannot be legally sold because there is no clear title on it.
For about a year Mr Wyer refused to pay the storage bill to get the car back because he believed he was not responsible for the impound and therefore should not have had to pay the bill.
In October 2015, Mr Wyer made inquiries with Transport and Main Roads and discovered the car had been sold and re-registered.
Unbeknown to him, Tow.com.au had transferred the car to City Motor Auction Group to be sold.
"A licensed motor vehicle dealer cannot sell a motor vehicle with an encumbrance on it, it's against the law," Mr Wyer said.
"It's a very bad look for police and I know for a fact that police believe that too."
When he raised his concerns with Tow.com.au, the car was retrieved from the new owner.
The company then sent Mr Wyer another bill for storage and refused to release the vehicle to him unless he paid.
Mark Lauchs, an Associate Professor at the Queensland University of Technology's School of Justice who specialises in police and administration, said the incident should be investigated by police.
"No-one's able to legally sell a car if they don't have title in the car, if they were to do so, and keep the money, potentially this is a criminal offence," Mr Lauchs said.
He said the matter should be included in a current Queensland Police Service review of its contract with Tow.com.au.
"A contractor has to maintain their integrity under the procurement policy, if there is evidence that a contractor isn't doing that then the police should be reviewing that service provider's contract."
Tow.com.au points the finger at police
This comes after the ABC revealed Tow.com.au was threatening Queensland Police Service with legal action, claiming they were owed money for the storage of forfeited cars.
Police are in legal negotiations with the company over those fees.
The ABC understands there are several years remaining on the contract between Tow.com.au and Queensland Police Service.
The company is also accused of owing sub-contractors across the state thousands of dollars.
A City Motor Auction Group spokesman said it had reviewed the vehicle in question and could confirm it was mistakenly sold at auction whilst having a lien over it.
"The sale was later voided and the vehicle was returned to vendor [Tow.com]," the spokesman said.
"Additional checks have since been put in place to prevent incidents like this reoccurring."
Tow.com.au has denied any wrongdoing and said the transfer of Mr Wyer's car to City Motor Auction Group was a "directive" of police.
The company refused an interview but in a statement a spokesman emphatically denied all claims put forward by the ABC accusing the company of any wrongdoing.
"We tow cars at the direction of QPS and deliver them for sale by an independent auction house when directed to do so," the spokesman said.
"The Queensland Police Service issue service directions digitally through Tow.com.au's TIMS platform."
"At 8:58am on 3 December, 2014, QPS issued a service direction for a 2004 Falcon Sedan, registration 157LQM to be sold."
He said the car was then transferred to City Motor Auction Group to be sold.
Queensland Police Service declined to be interviewed for legal reasons.
In a statement, Assistant Commissioner Mike Keating said the matter was being reviewed by Road Policing Command.
Topics: crime, police, laws, brisbane-4000
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