Public Trustee boss with help from George Street hires “B team’’ of executives as losses mount
Too many generals, too few troops on the front line, too much interference from George Street: That’s the view of a former senior figure at the Public Trustee of Queensland.
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AT A LOSS
Too many generals and too few troops on the front line. Too much interference from George Street.
These are the key allegations about the alarming state of the Public Trustee of Queensland from a senior figure who recently departed the beleaguered agency after a very long stint there.
This person contacted City Beat after we revealed recently that the self-funding organisation’s operating losses had blown out from $800,000 to $12m in the past financial year.
That didn’t stop acting head Samay Zhouand hailing the “success” of the organisation, which controls nearly $3bn in assets for about 10,000 clients.
Our source alleges that, in a bid to improve the PT’s battered image after the ouster of boss Peter Carne last year, Zhouand in coordination with Attorney-General Yvette D’Ath installed a “B team’’ of senior executives to help revitalise the agency.
Since then they’ve shelled out more than $500,000 on external consultants.
“In all my years I have never known the PT to have a loss until the Attorney-General decided to intervene in the organisation,’’ the spy claimed.
“The place is now overrun by senior staff who haven’t got a clue. This places downward pressure on the staff who are earning the money.
“When I was employed by the PT there were 5 people in HR. Now there are about 55. HR is a cost centre and thus the fee-earning profit centres have to pay for them. Most are earning more money than the staff who earn the money.’’
Another current insider corroborated this view. “The only significant increase in staff numbers in the recent past is in non-client services positions and most are in middle upper management up to directors and executives,’’ he told us.
The senior ex-player also added their voice to growing concerns that the PT could have its powers as a statutory authority curtailed and become just another branch of the Department of Justice.
“I fear that if the Labor Party is returned, the PT will be amalgamated with another department. Care should be exercised here because the government, now that it is desperately short of funds, could attempt to transfer the PT’s reserves into the common fund and spend these with gay abandon,’’ they warned.
“They’re trying to ‘vanilla flavour’ the PT into a typical government department. Because of its obligations and fee earning obligations I suggest this is not a good fit.’’
A spin doctor for D’Ath said she had “no involvement’’ in any of the appointments beyond tapping Zhouand for the job. He would not comment on speculation about possible changes to its status as an independent body.
A PT spokeswoman echoed these comments, saying that D’Ath was only involved in the appointment of Zhouand.
AIMING SKYWARD
There’s a fresh effort to build a rocket launching site on the Cape York peninsula.
Sydney-based firm Cosmovision Global Corporation announced this week that it has well-advanced with plans to develop a “space port facility and technology park” near Weipa.
Talks with indigenous land owners, as well as the state and federal governments, are underway for the ambitious project, which aims to capitalise on a growing private sector demand for satellites and other commercial payloads.
Company boss Ilya Osadchuk said he hoped to have all approvals and license requirements by the end of the year so that construction can begin in early 2021. First launches are planned for 2024.
But funding for the project, expected to cost at least $350m, still remains uncertain.
The company, which has flagged a possible ASX float, plans to tip up to $25m into the kitty. They expect the balance will come from both domestic and global investors, who are hanging back until all approvals are in place.
Meanwhile, both Labor and the LNP have flagged plans to turn a spot near Abbot Point, north of Airlie Beach, into a rocket launching hub despite concerns it’s not an ideal location.
JOINING FORCES
Two Queensland super funds have started merger talks in further evidence of the consolidation at play across the industry.
LGIAsuper and Energy Super announced Wednesday that they had signed a “memorandum of understanding’’ ahead of meetings to nut out the details of a possible union.
The due diligence comes after a series of discussions have already taken place between the two camps.
If successful, a fusion of the Brisbane-based companies would result in an organisation with 23,000 members and $20bn of funds under management.
It comes after the prudential regulator last year encouraged trustees to consider the benefits of joining forces.
The Productivity Commission has also touted the benefits of consolidation, noting that savings of at least $1.8bn could be realised through a series of unions.
Consulting group Right Lane predicted in a May report that Australia’s 90 or so super funds could fall below 20 as multiple pressures drive change in the sector.
CLAIM A DEAL
A Brisbane-based entrepreneur has come up with a solution for retailers desperate to get customers back in the door.
Tim Langford has already got about 120 businesses signed up for his Claim app, which provides consumers with last-minute deals at outlets within a 5km radius. It’s free to download.
Business owners, such as Patrick White at Pocket Microcafe in the CBD, pay either $49 a month or $365 a year to send out limitless promotions on the app to generate turnover during quieter times of the day.
Langford told us he’s aiming to get up to 500 clients in Brisbane over the next 12 months and roll out the concept on the Gold Coast and Cairns too.
His goal is to have 2000 businesses and 150,000 users by late next year. Expansion in other capital cities is also on the cards.
A former commercial property player in the city, Langford hopes to raise about $300,000 in an equity crowd funding campaign now under way. He launched the concept before COVID-19 hit and used the downtime to tweak the app with a range of improvements.