Pauline Hanson Pressures PM to Extend Banking Royal Commission

/in /by

Dear Prime Minister

Re:  Extending the existing Charter and time of the Banking Royal Commission

Firstly, I must state the Royal Commission is doing an excellent job in so far as its existing charter and time permits.

However, I am receiving numerous correspondence and calls from constituents who, whilst they have lodged their submissions have not, and have been informed by officers of the Royal Commission, will not be invited to attend to give evidence before the Royal Commission due to the limitation of time. It needs to be stated categorically any request by the Commissioner for an extension of time shall be granted to give full effect to the findings of the Royal Commission.

Secondly, the most important issue that has arisen, and raised previously by me, is the inclusion of Receivers and Managers, Liquidators and Insolvency firms appointed by the banks to come within the terms of reference of the Royal Commission.

In the Senate Enquiry into Bank Rural Lending Practices preceding the Royal Commission, the Chair specifically asked the question to separate major banks’ representatives as to whether those appointees I listed in the previous paragraph, on being appointed by a bank following foreclosure by the bank for whatever reason, were the appointees the agent of the bank. Two separate banks’ representatives stated they were. One bank Representative stated they were not and unfortunately the fourth bank representative was not asked the question.

It really is a very serious issue. Whilst I am sure you would be advised the strict legal position is those appointees are the agents of the defaulting party, the evidence resulting from that Senate Enquiry clearly showed those appointees:

  • act on the instructions of the bank;
  • only report to the bank;
  • refuse to account to the party they purport to represent;
  • maintain their position until the last cent of the estate has been lost; and
  • have no liability to account to anyone if they are negligent, sell assets below value, cause loss due to incompetency or fail to act in the best interests of the party.

The results of the Senate Enquiry are further re-enforced from numerous submissions to the Royal Commission.

I note there was a small media release which stated that Receivers and Managers, Liquidators or other Insolvency appointees could  be called as agents of their respective appointee bank. However, I am confident when I state, if the Royal Commission ventured down that path under its present charter to call before it any one of those parties, there would be a refusal to do so as it was outside the Royal Commission Charter.

I, on behalf of all those people who have suffered loss due to actions of those Receivers and Managers, Liquidators and Insolvency groups, urge you to take the proactive step of widening the terms of the Royal Commission to make it perfectly clear it has the authority to call those stated parties to account.

Also, state publicly and invite the Commissioner to seek an extension of time to hear further evidence now whilst the Royal Commission is in progress rather than belatedly following mounting public pressure and then having to repeat, at additional cost, extra hearings across Australia.

I look forward to receipt of your agreement to this request.

Yours Faithfully

Pauline Hanson

Senator for Queensland