The collapse of investment companies Westpoint, Fincorp, Australian Capital Reserve - and now Bridgecorp has left many self funded retirees virtual paupers - but they will get no joy when they attend Cenrelink and apply for a pension.
The bureaucracy moves in mysterious ways and the logic of it's thinking follows no known formulae. As far as Centrelink is concerned - they have no money problem !
According to the thinking of the Mandarins - just because a firm has gone into receivership does not mean that investor's equity is lost. That will only occur when the receiver finally issues a finding - and with a company as big and complex as some of those involved - that will take at least two years - and probably longer.
This line of thinking also ignores the reality that during the review period no interest cheques will be forthcoming. Centrelink merely shrugs it's shoulders and chooses to ignore the reality of families left without money to pay for food, pay rates and utility bills - and virtually exist.
At best - it may grant a small, part pension.
It wouldn't take Einstein to figure out a solution to this dilemma - but then Einstein never worked for the public service.
All it would take would be for the legal people to draw up a document directing any money flow from a settlement - should the receivers manage to sell assets and pay a dividend of a few cents in the dollar - directly to Centrelink.
Centrelink would then be protected from the consequences of granting the former self funded retiree a pension.
Should there be no dividend from the receiver, then the pension would be fully justified.
Should there be some sort of dividend, that would be adjusted against the pension and any surplus owing refunded to the retiree.
Such would be a common sense solution - but - when did common sense play a part in the decisions of government agencies ?
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