Cookie, I have personally contacted Caroline Snow, complaints officer and systems manager of Wellington Capital Premium Income Fund, Jenny Hutson managing director of Wellington Capital, PIF investor relations staff at WC and the members of the duly appointed Wellington Capital PIF Investor Advisory Committee members on numerous occassions as far back as May 2010 regarding the Forest Resort pending legal claim and how it should be disclosed on the NSX.
I notified the Misconduct & Breach Reporting
Stakeholder Services Australian Securities & Investments Commission in May 2010 on this matter and received the usual generic response.
I also sent the following to Ian Craig at the NSX on the 5th May 2010 who was not at all concerned.
'It has come to my attention that there has been an alleged serious breach of the Corporation Act in respect to non-disclosure by Wellington Capital of a current legal action against the PIF while units are actively trading on the NSX? In the event this legal action is successful it will have a huge detrimental impact on our Fund. '
I also contacted the Australian Shareholders' Association with the same information. Nothing was ever done
I have kept a record of all correspondence because I think investors in the Wellington Capital Premium Income Fund have been seriously let down by the current PIF Responsible Entity and all the mentioned so called regulatory bodies by failing to follow up on this issue.
I also sent the following to the PIF IAC on the 3rd of Feb 2011 to this date have never once responded or acknowledged any of my communictions!!
To the PIF IAC,
You would most probably not be aware of the legal action involving the PIF asset Novatel Forest Resort in Creswick where the owners have instigated legal proceedings against Perpetual where it is alleged Korda Mentha were prematurely appointed as Receiver & Managers by our current RE.
I understand the costs involved are approx: $284,845.00 in legal fees incurred to date (including drafting an amended reply). The form 524’s lodged with ASIC by Korda Mentha list payments to them for fees of $565,225 for the first 12 months as Receiver & Managers (Note: another 6 months fee paid to KM to be disclosed in next reporting period.)
This means $248,845.00 + $565,225.00 + $250,000.00 (Estimate KM 6 months)=$1,064,70.00 plus provision for legal fees to trial ($1,200,000.00).
Would it not be reasonable to assume the RE to have a statutory responsibility to its unit holders to disclose expenditure of $2.2 million + with the further risk exposure to Damages being awarded of possibly $155 million to the developer in compensation should it be proved Korda Mentha should not have been appointed?
Slater and Gordon Group leader as an agent of the court swore an affidavit that this case has merit and was in the public interest to be heard. Where does the PIF stand legally if it is proved that this was not simply a case of a disgruntled defaulting borrower but rather a developer who did not receive the whole amount of his loan from Octaviar/MFS after it collapsed (Perpetual was noted in the loan agreements as Lender and Custodian)
As these proceedings have never been disclosed to the NSX and any possible subsequent consequences to our Fund I would appreciate it if in your capacity as duly appointed PIF IAC reps you can discuss this issue with our current RE and comment on this issue in our next PIF investor update.
What does it take to get the message through?? Seamisty