Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
 Download Current HansardDownload Current Hansard    View Or Save XMLView/Save XML

Previous Fragment    Next Fragment
Tuesday, 10 December 2002
Page: 7646


Senator Sherry asked the Minister for Revenue and Assistant Treasurer, upon notice, on 20 August 2002:

(1) What are the current assets of the following superannuation funds: (a) the Australian Workforce Eligible Rollover Fund (AWERF); (b) the Network Superannuation Fund; and (c) the Midas Super Fund.

(2) What are the losses estimated to have occurred in these funds prior to the replacement of CNAL as trustee in December 2000: (a) as a result of exposure to the Enhanced Cash Management Trust (ECMT); and (b) as a result of exposure to the Enhanced Equity Fund (EEF).

(3) (a) How many members did each of these funds have; and (b) how many members of these funds are estimated to have been affected by these losses.

(4) What was the: (a) minimum; (b) maximum; and (c) average, loss incurred by these members.

(5) With reference to the Australian Prudential Regulation Authority's (APRA) submission 225 to the then Senate Select Committee on Superannuation and Financial Services dated 13 July 2001, which indicates that losses incurred through the ECMT and EEF affected many but not all of the members of the AWERF: Why was this the case.

(6) (a) What losses have occurred in each of the three funds since the replacement of CNAL as trustee; (b) how many members of these funds are estimated to have been affected by these losses; and (c) what is the: (i) minimum, (ii) maximum, and (iii) average, loss incurred by these members.

(7) (a) On what basis have Oak Breeze, as replacement trustee of the AWERF, and ACT Super Management, as replacement trustee of the Network Superannuation Fund and the Midas Super Fund, debited fees against member accounts; (b) what is the total value of the fees charged by the trustees of each fund; and (c) what is the: (i) minimum, (ii) maximum, and (iii) average, fee incurred by members of these funds thus far.

(8) Have Oak Breeze and ACT Super Management fulfilled their reporting obligations, under the Superannuation Industry (Supervision) Act 1993 and Regulations, to members of the respective funds; if not, has any action been taken to ensure they comply with these requirements.

(9) Have APRA, Oak Breeze, ACT Super Management or any other parties undertaken an investigation of whether fraudulent conduct or theft, within the meaning of Part 23 of the Act, has occurred in relation to any of these funds and their investments in the EEF and the ECMT.

(10) Have Oak Breeze or ACT Super Management made, or indicated that they intend to make, an application for financial assistance under section 229 of the Act in relation to any of these three superannuation funds; if not, why not.


Senator Coonan (Minister for Revenue and Assistant Treasurer) —The answer to the honourable senator's question is as follows:

It should be noted that the relevant acting trustee for the relevant superannuation funds has supplied figures quoted in these answers to the Australian Prudential Regulation Authority. They are current as at May 2002 for AWERF, and June 2002 for Midas and Network.

(1), (2) and (3)

1(a)(Assets)

2(a)(ECMT)

2(b)(EEF)

3(a)(Members)

3(b)(Members)

AWERF

$24.2 million

$0.87 million

$8.67 million

44,434

21,152

Network

$5.3 million

$52,435

$2 million

1,278

1,278

Midas

0.73 million

$0

$1.69 million

288

288

Question 4

4(a)Minimum

4(b)Maximum

4(c)Average

AWERF

$40

$451

$235

Network

$0.01

$77,880

$1,609

Midas

$0.09

$102,048

$5,869

The Australian Workforce eligible Rollover Fund was divided into a number of investment option pools. Only one pool (Pooled Division 1) had an exposure to impaired assets.

Question 6

6(a)Losses

6(b)Members

6(c)(i)Minimum

6(c)(ii)Maximum

6(c)(iii)Average

AWERF

Nil

Nil

Nil

Nil

Nil

Network

$111,014* investment loss

1,278

$ 0.01

$8,715

$60.07

Midas

$15,827** investment loss

288

$54.95

$54.95

$54.95

* Represents reimbursements payable by CNAL. The acting trustee determined that this amount was irrecoverable and has written it off.

** Represents an amount written off as irrecoverable in respect of the CNAL Imprest account.

(a) Fees for both acting trustees are on a fee for service basis.

7(b)Fees

7(c)(i)Minimum

7(c)(ii)Maximum

7(c)(iii)Average

AWERF

$3.089 million

$69.54 average for each member

Network

$635,000

$0.01

$49,851

$343.80

Midas

$250,595

$0.31

$6,644.44

$415.61

Reporting obligations in respect of AWERF, Network and Midas have been fulfilled.

The acting trustees of all funds have indicated to APRA that the losses suffered by the members were, in their opinion due to fraudulent conduct. APRA has appointed Gadens-Lawyers to undertake an independent review of these applications.

Oak Breeze has lodged an application for financial assistance under s229 on behalf of those affected members of AWERF. ACT Super Management has indicated it intends lodging an application for financial assistance under s229 on behalf of Network and Midas Superannuation Funds.