Royal Commission into finance brokers scandal set to start

8/6/01
The Royal Commission into Western Australia's finance broking scandal will formally commence on June 20, following the announcement today of the Terms of Reference for Royal Commissioner Ian Temby QC.
Attorney General Jim McGinty said the wide-ranging inquiry would investigate alleged unlawful or improper activities or practices relating to the finance broking industry since January 1, 1994.
Numerous development projects would be examined to help get to the truth of what happened and where people's money had gone, including (but not restricted to) 17 specific projects selected by Mr Temby for in depth investigation.
Mr McGinty said the Royal Commission would investigate the conduct of finance brokers, borrowers and those who provided services to them and to lenders. This included people such as advisers, accountants, auditors, bankers, lawyers and valuers.
"Mr Temby will also examine and report on the conduct of the relevant state regulatory authorities and whether it was adequate in the circumstances," the Attorney General said.
"I am satisfied the terms of reference agreed to by the Government are broad enough to ensure an in depth examination of the issues surrounding this disgraceful chapter in the State's history.
"The bottom line is that thousands of mainly elderly investors lost their life savings because of wrongdoing in the finance broking industry.
"I expect the evidence and findings of the Royal Commission will both assist in the pursuit of those responsible and also help the investors to take action to recover their losses where possible.
"It should also assist us to ensure that it can never happen again."
Mr McGinty said the arrogance of the previous Government in ignoring warning signs and then doing nothing to assist the victims of the scandal had already been judged by the electorate.
"In stark contrast, this Government is committed to assisting these people," he said.
"As well as establishing the Royal Commission, we will be funding appropriate legal cases to recover losses from finance brokers and their professional advisers, and ensuring legal cases are dealt with in a timely and efficient manner."
Mr McGinty said a team of four barristers, led by Tony Siopis, had been appointed as Counsel Assisting the Royal Commission. The Commission staff would also include senior police and forensic accountants.
Mr Temby has been asked to report his findings by December 21.
The 17 development projects to be examined in depth by the Royal Commission were selected by Mr Temby from more than 80 possible matters put forward by the Government. They include:

• the Westonbirt Park project, near Bridgetown;
• 7 Cessnock Way, Rockingham;
• the Margaret River Motel project;
• purchase of the Katanning Unit Hotel;
• the Stock Road Markets project, Bibra Lake;
• the Dunsborough Resort Motel complex;
• restaurant project, Lot 2 Coolbellup Shopping Centre;
• the Madison Apartments, 146 Mill Point Road, South Perth;
• Lot 100 Benara Road, Caversham;
• the Park View Estate project, Canning Vale;
• the Bubbling Billy Restaurant, Capel;
• the Karri Oak Vineyard project, Mt Barker;
• the Ord River Sandalwood project;
• 24 and 26-28 Trafalgar Road, East Perth;
• Wirilya project, cnr Toodyay and Jingaling Brook Roads, Toodyay;
• Lot 10 Hardy Road, Wattle Grove; and
• land dealings in the Wellington Heights Estate, near Collie.