Calls for government bailout of super fund collapse victims
Shire development
A new Australia-wide petition has been started calling on the government to compensate victims of two super funds which collapsed in May - a scandal which is integrally linked to a 2ha vacant lot on sale in Port Douglas.
Close to 500 people have signed the petition since it was started a week ago by Juan-Carlos Sanchez, who said he was one of about 12,000 people that lost their super when the Shield Master and First Guardian funds collapsed in the past year “after years of mismanagement”.
“It's a devastating blow for all of us hard-working Australians who trusted these funds with our lifelong savings, a trust that has now been shattered by the incompetence and misconduct of those responsible,” Mr Sanchez said.
“Superannuation is supposed to be a secure plan for our retirement.
“It is sacred and should not be treated as a personal bank account by corporate criminals.”
As the funds were collapsing, finance-industry watchdog the Australian Securities and Investments Commission followed the money trail back to a planned $300m Fairmont Resort at 71-85 Port Douglas Road, finding more than $100m was allegedly lent out by Shield Master for the project, despite the resort only ever making the "pre-development stage" and being rejected by Douglas Shire Council.
ASIC alleges the figures show marketing bills of millions of dollars for events involving sports stars such as boxer Floyd Mayweather and basketballer Josh Giddey, $4.3m towards a new Melbourne penthouse suite for the wife of property developer Paul Chiodo, and millions for construction costs for the Port Douglas resort and other buildings.
This included the pre-payment of an about $100m loan to building company City Built for the Port Douglas property for civil works, demolition, design consultants, marketing and planning - much of which will never be done.
ASIC has been looking into how more than $260m of Shield's $480m money pool was increasingly invested into a separate fund, which loaned money to companies linked to Mr Chiodo’s property developments, including the Port Douglas project.
Mr Chiodo has been fighting the charges in the Federal Court and has said all invoices and bank accounts had been submitted to the regulator.
“Many affected people are close to or preparing to retire and now have their entire futures placed in jeopardy because of this collapse,” Mr Sanchez said.
“And even already retired people that now have no money to live out their retirement after a lifetime of work and service to the Australian economy.”
The petition is calling on the Federal Government to cover the losses suffered by the victims of the funds’ collapse.
The more than 2ha parcel of land on Port Douglas Road was bought for $7.8m in 2018 by one of many companies Mr Chiodo was involved in, 75 Port Douglas Road.
Big plans for a 253-room resort were unveiled in 2020 by the then company director, which was to be operated by luxury hotel brand Accor, and was described by Mr Chiodo at the time as “uber five-star luxury”.
You can sign the petition at
change.org/p/ensure-government-compensation-for-collapsed-superannuation-funds.
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