Peter Killeen, head of the Co Kildare-based construction firm that collapsed last month owing more than €3 million, denied any wrongdoing in the transfer of staff and work to another company with the same management.

Siptu earlier this week called on the Government to investigate the collapse of PSK Construction, saying it was beyond belief that a company could go into liquidation owing large amounts of money and simply transfer its workers and contracts to another company run by the same people.

A spokesman for the Office of Corporate Enforcement said that while it was monitoring the situation, it wouldn't take any action until the liquidator had completed his report. This is due by the end of September.

PSK, based in Naas, went into voluntary liquidation in March owing about €2.5 million to the Revenue, another €360,000 in wages and redundancy pay to its workers, plus an unknown amount in unpaid pension contributions. The company in February failed in a High Court injunction aimed at reversing a ruling that any money owed to the company be paid straight to the Revenue following the discovery of the unpaid taxes.

Mr Killeen described the switch of staff and contracts to PLK Plant and Hire, a company he set up two-and-a-half years ago, as a simple survival tactic. He said PSK was forced out of business because of over competitive pricing and that all members of staff were given the option of redundancy or transferring to the new company.

A spokesman for the Construction Industry Federation said this particular issue was a matter for the Revenue and the corporate regulator.

According to Mr Killeen only six members of staff are owed redundancy pay and the remainder only one week's wages, which will be paid by the liquidator. However, a statement of accounts filed to the liquidator on March 13th shows that 21 staff members are owed €85,241 in redundancy pay, while 157 are owed €236,205 in unpaid wages.