Statewide Superannuation is seeking the return of more than $300,000 in personal expenses it alleges was wrongly charged to the company by its former chief executive.
The $1.7 billion South Australian superannuation fund alleges Frances Magill misappropriated $344,000 worth of company monies.
Statewide Superannuation Trust chairman Nicholas Begakis said a detailed financial investigation by independent external auditors has been undertaken.
“The alleged inappropriate personal allocations were of an operational nature and did not involve funds under management,” Begakis said.
“The independent external auditors reported no further concerns as to financial propriety within the fund and the board is equally satisfied there are no other irregularities and this has been communicated to APRA (the Australian Prudential Regulation Authority).”
Statewide alleges Magill charged $76.26 for a baby basket, $550 on State Theatre memberships, $6825 for the installation of various car accessories in company cars, more than $54,000 in travel expenses, and more than $80,000 in food and beverage costs.
Magill, who retired from her post as Statewide chief in July 2009, intends to defend the allegations against her.
“I will be defending the allegations absolutely and I have a counter-claim of my own,” she said.
“I’m contesting the allegations. My legal advice is, and I believe it’s sound advice, that I’ll have my day in court and it’s the best place to test my allegations and my defence against them will be in court.”
In February this year, Magill formed her own financial planning practice, Frances Magill Financial Strategists, and is an authorised representative of Matrix Planning Solutions.
Matrix Planning Solutions managing director Rick Di Cristoforo said the firm is aware of the allegations against Magill.
“The matter is, as you would understand, an employer and employee dispute that has allegedly occurred well before Mrs Magill had any involvement in Matrix – well before,” Di Cristoforo said.
“We understand that Magill will be filing her defence in court in due course.”
He did not anticipate the legal proceedings between Statewide and Magill would have a flow-on effect for the dealer group or its clients.
“I don’t believe so – again because none of this has occurred at any stage while there has been any involvement with Matrix,” Di Cristoforo said.
“I think natural justice would say why would there be any fallout for Matrix or any Matrix practice on the basis of this? But as I said, it’s an allegation and Mrs Magill will be filing a defence in court in due course.”
