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Tuesday, 10 December 2002
Page: 7644


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

(1) When was the application for assistance under Part 229 of the Superannuation Industry (Supervision) Act 1993 lodged with the Assistant Treasurer or her predecessor, the Minister for Financial Services and Regulation.

(2) When did the theft, as outlined in the Assistant Treasurer's media release, occur.

(3) For the purpose of granting financial assistance under section 231 of the Act, what did the Assistant Treasurer determine the total eligible loss suffered by the AISF to be.

(4) (a) What was the name of the trustee director imprisoned for theft; and (b) when did this conviction occur.

(5) Was the AISF a public offer superannuation fund as defined by section 18 of the Act.

(6) Did Broadway Fiduciary receive any payment as trustee of the AISF.

(7) Was Broadway Fiduciary an approved trustee under Part 2 of the Act; if so, did Broadway Fiduciary meet the capital requirement under section 26 of the Act; if Broadway Fiduciary did not meet this requirement, when did the Australian Prudential Regulation Authority (APRA) become aware that this was the case.

(8) Did Broadway Fiduciary meet the equal representation requirements under Part 9 of the Act; if not, when did APRA first become aware of this.

(9) (a) Under what circumstances did the 160 members of the AISF who suffered losses as a result of theft become members of the fund; (b) did members chose to make rollovers or personal contributions to the AISF; (c) did members chose the AISF as the destination for employer contributions or did their employers make contributions to the AISF under an award, industrial agreement or contract; and (d) who, if anyone, were the employer sponsors of AISF.

(10) When did APRA first become aware that the AISF had suffered a loss as a result of theft.

(11) (a) Did APRA remove Broadway Fiduciary as trustee of the AISF under section 133 of the Act; and (b) did APRA appoint Denara as acting trustee under section 134 of the Act; if so: (i) what process did APRA use to select the replacement trustee, and (ii) what conditions, if any, did APRA impose on the acting trustee under section 135 of the Act; if not, under what circumstances was Broadway Fiduciary replaced as trustee.

(12) Is Denara receiving any payment as acting trustee of the AISF; if so, was any of this payment included in the eligible loss for the purpose of financial assistance under Part 23 of the Act.


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

(1) The application was initially received from Broadway Fiduciary on 8 August 2000. Denara Nominees Pty Ltd on 27 October 2000 requested that the application be deferred. On 15 August 2001 Denara submitted a new application. In January 2002, Denara withdrew that application stating that they would be preparing a revised assessment of the loss suffered. A revised application was received on 28 February 2002.

(2) Between June 1996 and June 2000.

(3) $902,244.44

(4) (a) Mr Lindsay Dods. (b) 24 November 2000.

(5) No.

(6) Yes.

(7) No.

(8) Yes.

(9) (a) Arrangement between their standard employer-sponsor and the fund trustee. (b) Yes. (c) See answer to (a).

(d)—

Wiseshare Holdings Pty Ltd

Failsafe Holdings P/L

Australian Turf Industries

AISF

Liberation Holdings Pty Ltd

Joanne Matich & Associates

Aladdin Holdings Pty Ltd ATF The Settlers Green Trust and ATF The Preuss Group Development Trust

Hathermoor P/L T/As Murdoch Jones Realty

Magentatown Pty Ltd

Vaston Pty Ltd

Ashburton Enterprises Pty Ltd

Project Planning & Management (WA) Pty Ltd

Kramer & Kramer Real Estate

Harry Newell Estate Agency

Jergen Werner Preuss ATF The Preuss Group Retail Trust

Kells Secretarial Service (Also McLeod & Co)

Skyoak P/L T/As Ray White Kelmscott

Etsaw Holdings T/A Kemo's Plumbing Northwest

JMI Pty Ltd

Network Reality Pty Ltd

Kelly Reality Pty Ltd

G.R.Q. Pty LTd T/A Roy Western Carousel

Iannes Commercial Cleaning Pty Ltd

Outline Research Services

Clairs Keeley

Koomella Heights Pty Ltd T/A Daly Drilling Company

B&M Nominees Pty Ltd T/A Carine Glades News

Angel Bay Pty Ltd T/A Regal Settlements

Selby Enterprises ATF Five Seas Trust T/A Pilbarra Food Services

Technical Resources Pty Ltd

Nicholson Clement

Mango Hill Pty Ltd T/A Arrix Services

Western Fabrication

BM & SF Cooper

Motor Industry Training Association

Summerstrand Holdings Pty Ltd ACN 050 601 093 ATF Janet Smith Family Trust T/A Specialist Mortgage

Kaye Wills

Luxton Harvey Real Estate

IINet Limited

D.T. Peacock Pty Ltd

(10) 27 June 2000.

(11) (a)Yes. (b) Yes. (i) APRA invited expressions of interest from five accountancy firms. Those firms expressing interest were asked to specify particular expertise in superannuation industry practice and law, forensic accounting and business reconstruction/recovery. (ii) The Conditions are as follows:

SCHEDULE

TERMS AND CONDITIONS OF APPOINTMENT

1. The Acting Trustee must not use or disclose any information relating to the affairs of the Fund except for the purpose of performing its functions as Acting Trustee.

2. Despite anything contained in the governing rules of the Fund, the Acting Trustee's fees are to be paid out of the Fund. The fees of the Acting Trustee are to be fully disclosed to members on request and also at the same time as the periodic disclosure made in accordance with Part 2 of the Superannuation Industry Supervision Regulations 1994.

3. If the Acting Trustee believes that any action is necessary that would breach, or exceed its authority under, the governing rules of the Fund, the Acting Trustee must:

(a) inform the Australian Prudential Regulation Authority in writing immediately; and

(b) must not take the action without the Australian Prudential Regulation Authority's written approval.

4. The Acting Trustee must, within 21 days after the date of this instrument, prepare, and give to the Australian Prudential Regulation Authority, a plan setting out the course of action in respect of the management of the Fund that the Acting Trustee considers would be in the best interests of its members.

5. The Acting Trustee is to be indemnified out of the Fund in relation to any expenses properly incurred by it in the course of the performance of its functions as Acting Trustee of the Fund.

6. The Acting Trustee may pay out of the Fund any debt incurred by the former trustee in relation to the Fund, provided that the Acting Trustee is satisfied that:

(a) the debt was properly incurred;

(b) the creditor to whom the debt is owed would be entitled, under the general law, to be indemnified out of the Fund; and

(c) it is in the best interests of the members of the Fund to pay the debts.

(12) Yes; Yes.