$11 million of dairy farmers’ money was in the wrong hands for 16 years
For 16 years more than $11 million of dairy farmers’ money was held in the wrong hands. This is how it finally got to its rightful owners.
MORE than $11 million of dairy farmers’ money was held in the wrong hands for 16 years – and no one can explain how the error occurred.
Questions are being asked why it took so long for Australian Dairy Farmers to be found the rightful owner of the cash, which was meant to be transferred from Australian Dairy Industry Council in 2003.
Instead, the transfer of $11.2 million occurred last July, after the original deed was found in ADF archives. Earlier that month, ADF had announced it would no longer take $1 million a year in processor funding, amid accusations of a conflict of interest.
ADF chief executive David Inall said ADF and ADIC had always been aware of the cash, which had been held in trusts or managed funds since 2003 and provided dividends that helped fund both organisations.
“Given the passing of time and change of staff over this time, and the fact these funds have been well-accounted for and under management throughout, we have not determined why this transfer did not occur,” Mr Inall told The Weekly Times.
The original 2003 deed, tabled to a Senate inquiry into the dairy industry this month, show the ADIC assets were to be transferred to ADF, which would then use the funds “in the best interests of the dairy industry”.
The transfer was approved by then-agriculture minister Warren Truss, on the condition the Minister be provided annual audited statements on the fund. The Minister also retains final approval on the fund’s future should ADF ever be dissolved.
Mr Inall said ADF sought legal advice before the transfer last year, “to confirm the documents were valid and that completing the transfer could proceed, even after the lapse in time”.
Mr Inall had told a Senate inquiry the fund was not currently worth $11 million, due to the drop in stock markets; however, he confirmed to The Weekly Times the fund was now valued at $11.3 million, due to “professional fund management and a rebound in some financial markets”.
Labor’s agriculture spokesman Joel Fitzgibbon said the matter warranted further investigation.
“Given the various questions asked weeks ago during a dairy inquiry remain unanswered and inconsistencies relating to the $11 million trust fund, I’m writing to the Minister (for Agriculture, David Littleproud) to ask what action he has taken to satisfy himself money intended for our dairy farmers has been used for those purposes,” he said.
Mr Littleproud said the transfer of assets between ADIC and ADF was a matter for them.
“The Australian Government has no role in the governance of the fund other than to receive reports on the use of the fund once the transfer has taken place,” the minister said.
“The first financial year since the transfer completed ended on July 1, 2020.
“I therefore look forward to receiving the first report from ADF shortly.”
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