great southern probe on slow boil, page-10

Wooduk,

Thank you very much for your explanation and posting the Senator Bill Heffernan's report to the Parliament MIS Inquiry.

I have especially noticed the following proposed measures in the report.

"29. It is my respectful submission that Mr Cole, Mr. Calder Mr Cameron Rhodes, Mr Young and all directors of the Scheme Promoter and RE entities should have their assets frozen and seized and that they should also be prosecuted for fraudulent conduct. In this regard, not only did they promote and participate in a scheme to trick investors to swap their assets for shares, they were warned not to do so by many investors and proceeded to do so in the face of those warnings.

Recommendations �Salvaging the MIS Schemes

30. The current fix-it regime is for the MIS Scheme companies to be placed in liquidation so that they may be further raped and pillaged by liquidators and lawyers while the courts are tied up for years with the liquidator seeking court approvals and class actions by enterprising law firms.

31. It is my submission that Parliament introduces retrospective and prospective laws �much as it did for the bottom of the harbour tax schemes to ensure that all monies are recoverable by investors and that shareholders get some return.

32. These measures could include the following:-
a. The Government take over the schemes and see them out including conversion of the pine forests to woodchip for sale and an orderly sale of landholdings.

b. The government to appoint an expert panel of businessmen who will form a board of management in an honorary capacity to direct an efficient operation for the government to implement appropriate measures until their completion in accordance with an effective business plan supported by legislation.

c. Legislate to make the investors preferential secured creditors before the banks/ secured land lenders (who were also culpable as they gave loans to the Scheme company that put at risk the security of the investors) followed by the shareholders and then the banks. Please note that the government receives tax revenue from the proceeds recovered by the investors as they are all tax.
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d. Make KPMG culpable for its fraudulent advice and recover the balance of the losses.

e. Seize the cash held by the finance company that improperly sold the loans of investors to the Bendigo bank and others and refund the Bendigo bank and others reversing the transactions (Debt ledger sales).

f. Legislate for a moratorium on loans owed by investors until the investors recoup their capital investment. No further interest is to be payable on the loans."

Any way, all these people are culpable for the $billions of investors/shareholders funds disappeared, aren't they?