In a joint statement, Shadow Minister for Financial Services and Superannuation Mathias Cormann and sitting member of the parliamentary joint committee (PJC) MP Paul Fletcher labelled the government’s response to the Trio collapse as “highly inadequate”.
Former financial services minister Bill Shorten showed a “troubling lack of urgency and engagement” on the subject, the Coalition statement said, and by criticising a majority of the Trio investors for “swimming outside the flags”, Mr Shorten “completely ignored the unique circumstances of the Trio collapse”.
“Trio investors did not consciously set out to put their retirement savings into particularly risky investments. They were victims of fraud and, according to a comprehensive parliamentary inquiry, the failure of relevant authorities to act in a timely and appropriately coordinated manner,” the statement said.
The Coalition MPs criticised Mr Shorten for taking “nearly a year” to consider the recommendations made by the PJC, adding that his response was only “preliminary” and “merely announced further new reviews”.
“The new treasurer, Chris Bowen, must re-consider all the recommendations of the parliamentary joint committee in relation to Trio,” the statement said.
“He must ensure that proper investigations are conducted into the key figures responsible for defrauding investors in Trio and explore whether the unique circumstances surrounding the Trio collapse justify at least a level of compensation to victims so far left out in the cold.”
Mr Cormann and Mr Fletcher said it was “critically important” that Mr Bowen “obtain a briefing from ASIC to clarify why they do not intend to intervene before the Federal Court on 8 July to prevent the lifting of travel restrictions currently imposed on alleged Trio fraudster Paul Gresham/Tony Maher”.
“Trio investors fear that with his travel restrictions lifted, Gresham/Maher will seek to evade justice by leaving Australia – and not returning,” said the statement.
Gresham/Maher was a financial planner who induced his clients to invest over $30 million into Trio’s ARP Growth Fund, which subsequently collapsed.
“The Trio case demonstrates that Australia’s $1.5 trillion superannuation savings pool is exposed to international criminal activity targeted at defrauding Australian investors, as the unanimous cross-party parliamentary committee report highlighted,” the statement said.
“There is an opportunity for the new treasurer, Chris Bowen, whose responsibilities include financial services and superannuation, to fix up the mess Bill Shorten left behind for him,” it said.
