Most people think the Ombudsman’s role as watchdog provides a safeguard against wrong or bad administration by State Government departments or agencies and that the Independent Commission Against Corruption (ICAC) will investigate when that administration is corrupt. In reality, the Ombudsman’s office and ICAC operate like data bases collecting details from the general public regarding their complaints against the various Government departments or agencies. These complaints are then almost invariably dismissed regardless of the strength of the evidence. It must be kept in mind that agencies like the Public Trustee are an important source of revenue for the States and that they also generate substantial income for the State Revenue Office from stamp duties when they force the sale of their clients’ properties and other assets. The money collected then in turn goes on to fund operations like those of the Ombudsman and ICAC.
It will be seen from the material presented on this website that the NSW Ombudsman has been provided with irrefutable evidence of NSWTG authorising the payment of fraudulent charges from their clients’ trust accounts. The Ombudsman justified his decision in not pursuing the matter on the grounds that the evidence did not establish the NSWTG officer concerned knew the charges he had authorised for payment were fraudulent. He refused to seek reimbursement for the clients who had lost their funds or to have NSWTG report those behind the scam to the police. Likewise, the Ombudsman saw no need for NSWTG to report thefts from clients’ unoccupied properties to the police, even when this had been requested by the clients and their families. Complaints to the Attorney General were met with the response that NSWTG is an independent agency and the Government cannot intervene in its affairs.
A more effective way of dealing with Public Trustee abuses is to have it exposed by the mainstream media wherever it occurs. Media exposure causes an outpouring of public anger over the exploitation of our most vulnerable citizens, which forces the State Governments into responding to the complaints. Unfortunately, getting the media to report on Public Trustee abuses is much easier said than done as the media generally prefers to exclude Public Trustees from scrutiny when reporting on elder abuse and exploitation. This is an unfortunate situation as Public Trustees are easily the largest organised forces engaging in financial abuse and exploitation of our elderly and most vulnerable citizens throughout Australia.
There were reports in the Victorian press over the vast sums of clients’ money that State Trustees lost when they invested the funds in high risk products which collapsed following the GFC and, then more recently, of its CEO Mr Craig Dent being dismissed for alleged misuse of more than $300,000.00 in public funds. The Today Tonight show in Adelaide carried out several investigations into the conduct of the Public Trustee and its staff in South Australia which resulted in several programmes being aired detailing the losses being caused to their clients. However, the conduct of the Public Trustees in both NSW and Queensland went virtually unreported for many years until the circumstances surrounding the death of Steven Colley, while he was under the financial management of NSWTG, were brought to light in the Gold Coast Bulletin in January 2019.
The Gold Coast Bulletin report led to a detailed article being published by the Fairfax media on 3 February 2019 warning of the total disregard Public Trustees show for the financial welfare of their clients while charging them exorbitant fees in the process. This article was published in both Fairfax’s Sydney and Melbourne newspapers and was the first time that such a detailed report focussed on NSWTG’s abuse and mistreatment of its clients had been published in a major capital city newspaper. However, the article’s claim that funds were being placed in high risk investments, unsuitable for elderly clients, is a problem more typically associated with the Public Trustees in Victoria and South Australia than it is with NSWTG, while the case cited in the article as an illustration of this actually took place in Adelaide and did not involve NSWTG.
Whilst the case cited as an illustration in the article did not specifically name NSWTG, the fact that it stated that the Public Trustee and Guardian in Barbara’s State had been put in charge of her finances and then proceeded to invest them in risky products, clearly identified it as being NSWTG. This is because NSW is the only State where the Public Trustee and Guardian operates as a combined body. In all other States the Public Guardian operates as a completely separate body from that of the Public Trustee. The A.C.T. also does combine the two bodies, but is classified as a Territory not a State. The article was correct in claiming that laws prevented the victim, Barbara, from being identified but the laws did not prevent it from revealing that the events actually took place in Adelaide and that it was the South Australian Public Trustee investing in risky products.
NSWTG is alleged to have complained that the article was damaging to its reputation of keeping to conservative investment strategies for its elderly clients. However, NSWTG should consider itself most fortunate that the author of the article chose not to speak to people in NSW first before describing NSWTG’s fees in a favourable light when comparing them with fees charged by State Trustees in Victoria. If she had have done so she would have learned of NSWTG’s penchant for selling their clients’ properties in order to charge management fees each month from the money raised from the sales, keeping in mind that family occupied properties are exempt from these fees. This can have the effect of raising a client’s fees by more than $1,000.00 each month. Having said that, the article was still a most valuable warning to all Australians to steer well clear of the Public Trustees if they don’t want to be ripped off and have their life savings destroyed.
Easily the most widespread publicity has been given to the fraudulent activities which occurred at the Public Trustee office in Canberra and which was reported in all forms of the media right across Australia. Those behind the fraud were put on trial because of the strong actions taken by the head of the Public Trustee in the A.C.T. Mr Andrew Taylor who, on being informed by other staff of the irregularities, brought in outside independent forensic accountants and reported the matter to the police. This was not a case of the media exposing corruption and forcing Mr Taylor to respond. On the contrary, it was Mr Taylor who took the initiative and the media simply reported on what was revealed as a consequence of the actions he had taken. This was quite different to what happened in Victoria and South Australia where it was the Public Trustees trying to conceal what the media was exposing.
The most disturbing thing from all this is that the same type of fraud which occurred in the A.C.T. has also been occurring in NSW. The difference is that in NSW the fraud has been swept under the carpet, the police have not been brought in, and the clients have not been reimbursed for the losses they have suffered. The Attorney General, politicians generally and the media are all well aware of what has been going on but NSWTG is considered too big a revenue raiser for the State for anyone to intervene or at least find the courage to report it. The value of assets held under its management, shown in the figures below, gives a clear indication as to the influence and power it wields relative to those of the Public Trustees in the other States.
The following is a list of the client numbers under financial management with the various Public Trustees around Australia and the value of the assets the Public Trustees were holding on behalf of their clients as at 30 June 2018. The figures include properties under management and Government funds which have been placed with the Public Trustees in their roles as clients. Figures for Tasmania and the Northern Territory have been excluded as the criteria used in determining assets under management in their reports meant their figures could not be compared with those of the other States and the A.C.T. without further information being obtained.