Staff and members rort GESB
Western Australia’s largest superannuation fund, the Government Employees Superannuation Board (GESB), has been the victim of a rort to the tune of $6 million, perpetrated by 15 staff members.
The West Australian newspaper reported today that it had received confirmation from GESB management that several of its staff had been forced to take leave as a result of the incident.
According to the newspaper, 15 GESB employees along with 170 members of the super fund benefited from equity market movements by exploiting a “loophole” that allowed them to advantageously shift their monies in and out of share investment funds.
In perpetrating the alleged rort the group also managed to reduce the returns of the other fund members.
As a result, GESB has been forced to compensate those members who missed out on the switching exercise from its reserves to the tune of $6.3 million.
GESB chief executive Michele Dolin told the West Australian that the board of the fund took steps to close the loophole as soon as it was brought to their attention.
She also pointed out that there did not appear to have been any collusion between the GESB staff and fund members.
The incident was reported to the Corruption and Crime Commission, the State Solicitor’s Office and the Auditor General, and is now being treated by the fund as a disciplinary matter.
Recommended for you
The corporate regulator has announced its first adviser banning of the year with the permanent ban of a Queensland-based former adviser that was sentenced to seven years’ imprisonment.
The Australian financial advice industry has risen by more than 20 advisers this week, with nearly half joining WT Financial and Sequoia.
Two financial advice professionals have shared their tips for success when building an effective Professional Year program as more advisers look to bring on junior staff to their practices.
Numbers are in for 2024, with Wealth Data confirming how many advisers left during the calendar year and which business models saw the largest growth in terms of new licensees.
