Archive for April 2013

Be aware, this watchdog barks

There was a very strange article in the Sydney Morning Herald last Saturday written by the chairman of the Australian Securities and Investments Commission. It took the place of the ususl Michael West article.

The title of the article was: Be aware, this watchdog bites, and went on to trumpet the great job he believes ASIC are doing on enfircement to protect investors.

The highlights include his opinion that “ASIC’s enforcement record on holding gatekeepers to account is solid” and that ASIC “has set up a taskforce to weed out dodgy advisers and spruikers”.

We were intrigued by this article because of our knowledge of the Bookmakers Superannuation Fund and the role of Super Promoters. The Bookmakers Superannuation Fund has already mentioned many times on this blog, and elsewhere, so there is no need to go into it in great detail. In summary, John Kennedy, Peter Mueller, Peter Hayes-Williams and Ian Buxton, the trustees of the fund, set up a company Super Promoters Pty Ltd to extract fees from the fund with no benefit to members.

This skim operation was deceptive, unethical and almost certainly illegal.

It is at least two years since members of the fund contacted ASIC and gave them a detailed account of the entire Super Promoters scheme. And what has ASIC done in that time?

That’s right – nothing!

We are also amazed that the Michael West column would be used for this ASIC fluff.

 

Save City Tatts Committee

Posted April 22, 2013 by savecitytatts in Uncategorized

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More on the Club’s ANZ mortgage

A few people have pointed out that we may have missed something about Campion’s move to mortgage 194 Pitt Street to the ANZ Bank.

They say that the real reason is probably that Campion and Guilfoyle believe ANZ are more likely to finance their proposed property development. There might be something in this.

We shall see.

 

Save City Tatts Committee

Posted April 13, 2013 by savecitytatts in Uncategorized

Patrick Campion has mortgaged the Club’s building to ANZ !!!

Yes, Patrick Campion has mortgaged 194 Pitt Street to ANZ Bank.

The implications are staggering – and confirm everything that has been said about Campion on this blog.

First, it is a clear breach of the City Tattersalls Club Act which says that no mortgage can ever be granted over the Club’s property unless approved in advance by members.

Second, it could only be sheer desperation that made the Club change banks at this time. City Tatts has banked with National Australia Bank for over 40 years. To switch to ANZ now can only mean that National Australia Bank told the Club to go or insisted on additional terms that the Club could not meet. (It is no secret that National Australia Bank have been very concerned about the management of City Tatts since last year.)

Lastly, this move makes nonsense of Campion’s statement in February that the Club had “met all bank covenants”. You can not change banks overnight when there are commercial overdrafts, floating charges and mortgages involved. Campion must have already been in discussions with the ANZ about the move in February when he made the statement – knowing that a new mortgage with ANZ would be necessary.

It is also interesting to consider the position of ANZ in this mess:

  • How will the legal department of ANZ react when they discover that the mortgage is not valid?
  • The bank’s credit review team will obviously want to interview the ANZ banker who brought in City Tatts as a client. We don’t know yet who this person is but we should be able to find out fairly soon.
  • The mortgage is for $17 million – secured on a building that is not worth $8 million. We can only guess that there must be additional floating charges to cover the shortfall.

 

Save City Tatts Committee

 

Posted April 10, 2013 by savecitytatts in Uncategorized