Penalty Notice – building without approval

I am an applicant for a Compulsory Strata Manager, the reason for the application is because building Maintenance wasn’t being under taken, this was the 2nd application that was successful as the first Strata Manager didnt comply with the orders.

The situation is that the building inspection was undertaken by the Compulsory Strata Manager, with all maintenance items and OH&S item being identify, building quotes were sourced and builder appointed, special levy raised, and finally building undertaken.

The building in some areas was subjected to a complaint from one of the neighbours at the local council, it has been identified that the building was subjected to Development Application.

The Comulsory Strata Manager didn’t check legislative requirements and now (no longer under Compulsory Strata Manager) the owners corporation is subjected to a fine, and the additional costs of obtaining a building certified and applying for a building certificate, not to mention any possible alterations we might have to make.

Strata Manager has stated they will not be held liable.

Who is liable for this fine? And rectifying the situation we are in now.

Does the Executive Committee at the time (being the Strata Manager) have Insurance for this error?

Edit: 8:52pm also one last thing, worse case senerio, if it has to be pulled down and made good – will the Stata Manager also be liable for the initial costs of the building/s in question?