What Happened to the Widows’ Money?

A trustee is entitled to be reimbursed for expenses and liabilities “properly incurred” in the administration of the trust. More details are provided on what is meant by properly incurred” here.

However records confirm that substantial amounts were reimbursed to the purported corporate Trustee soon after it was appointed to the office of trustee as purported “liabilities” incurred by the newly appointed corporate Trustee.This occurred after the genuine deeds were concealed from the members and a purported new set of “Rules” was promoted as the legal basis of the Fund.

These amounts greatly exceeded the amounts required to cover the general administration expenses of the occupation pension fund established on the 23 December 1913.

The general administration expenses were paid by way of exoneration directly from the Trust Estate and not out of the purported Trustee’s own pocket. So if bona fide liabilities requiring payment were in fact incurred why were these not also settled by way of exoneration?

No mention was made in the new set of purported “Rules” of a survivorship pension for widows.

In 1996 the general administration expenses of the Fund amounted to $0.75 million, hence for the decade 1982 to 1992, total administration expenses should have been around $10 million for the entire decade.

However in 1987 alone $21.1 million was transferred from the Trust Estate of the members’ Fund to the purported corporate trustee as purported “liabilities incurred by the Company in its capacity as trustee”.

For the decade from 1982 to 1992 when the “Elders IXL Management Team” had control of the Fund, the total about transferred from the Trust Estate to the purported corporate Trustee appointed on 20 December 1982 was approximately $100 million, or ten times what the general administration expenses of the Fund were.

ASIC holds the original records that confirm the transfer of just over $100 million in this 10 year period. So what is the explanation for this transfer. Is where the money that had been originally built up in the fund to pay the widows’ pensions went?

The employees’ super fund also was a large shareholder in Harlin Holdings Pty Ltd that was the vehicle used in the attempted privatisation of the public company – Elders IXL Limited.

None of the Directors listed below bothered to read the original Trust Deed or the Elder Smith & Co Provident Funds Act 1963 (SA) that amended the terms of the original Trust Deed.

Directors of Corporate Trustee

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This tab updated on 22 March 2015