$40K fine for electrical licence-sharing scheme


Tuesday, 25 June, 2024

$40K fine for electrical licence-sharing scheme

Three people and two Perth companies have received fines totalling almost $40,000 for taking part in an illegal licence-sharing arrangement involving solar installations at 25 properties.

Jafal Brothers Pty Ltd, its director Rohit Kumar Jafal, and Tanway Engineering Pty Ltd and its director Sukujohn Tharakan pleaded guilty to offences under WA’s electricity licensing regulations at Perth Magistrates Court in June.

A third man had previously pleaded guilty in April to related charges and is not named due to a spent conviction.

The regulations stipulate that only a person authorised by an electrical contractor (EC) licence can carry on business as an EC. This includes entering into contracts, employing electrical workers (EWs) and authorising EWs to complete electrical safety certificates for electrical installing work carried out on behalf of the EC.

The court heard that Jafal was a licensed EW who carried out electrical installing work for Jafal Brothers — a business that traded as WA A1 Electrical but was not a licensed EC. Jafal Brothers was fined $12,500 for misrepresenting itself as an EC, which included receiving payments and issuing invoices for Jafal’s electrical work.

Jafal himself was fined $5000 for lodging 25 unauthorised electrical safety certificates through Building and Energy’s eNotice system. This paperwork related to solar installations he carried out for Jafal Brothers in several Perth suburbs as well as Mandurah and Bunbury.

Jafal lodged an additional 23 certificates falsely identifying Tanway Engineering (EC13223) as the EC responsible for his work, even though Jafal was not employed by this business. Tanway Engineering was fined $12,500 and Tharakan, the company’s sole director, was fined $5000 for allowing Jafal to lodge the improper certificates.

The third man was fined $3500 in April for also allowing Jafal to use his EC licence to lodge two electrical safety certificates when he had not employed Jafal for either project.

All five defendants were also ordered to pay $272.70 each in costs.

Magistrate Lynette Dias said the electrical industry must ensure compliance with the regulations because “they are in place for a reason”. However, she acknowledged the early guilty pleas by the accused parties and noted Jafal had since obtained an EC licence.

Building and Energy inspected Jafal’s work at the affected properties and is satisfied that it complies with the relevant standards.

WA’s Director of Energy Safety, Saj Abdoolakhan, said the electrical licensing system protects consumers by ensuring licence holders meet stringent requirements and take responsibility for work that is safe, compliant and effectively regulated.

“In this case, the licence borrowing arrangement misled consumers and created a false chain of responsibility that could have jeopardised safety and liability,” Abdoolakhan said.

“One person was effectively carrying on an independent electrical installing business despite not holding the required electrical contractor licence. This is illegal, dangerous and an affront to honest contractors who have diligently obtained this credential.

“Two electrical contractors then allowed misuse of their details on official documents for work carried out by an entirely separate business. Electrical contractors must only execute electrical safety certificates or notices of completion for work done by their own employees.”

Image credit: iStock.com/nuttapong punna

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