ATL Pension Fund was well managed

The billion-dollar fraud trial of three former executives of the Appliance Traders Limited (ATL) Group yesterday heard evidence that the ATL Pension Fund "did well" over the period it was managed by two of the accused, racking up millions of dollars in interest and withdrawal surpluses and large payouts to members.

The testimony came from Astor Duggan, head of the company that for decades had provided actuarial services to the pension scheme.

"It was well-managed," Duggan testified, during cross-examination by defence attorney John Junor.

Patrick Lynch, former chairman of the pension fund, and Catherine Barber, former general manager, along with Dr Jeffrey Pyne, former managing director of Gorstew Limited - the holding company for ATL boss Gordon 'Butch' Stewart - are on trial for allocating interest and withdrawal surpluses totalling $1.7 billion to members accounts without Gorstew's consent, and allegedly using four forged letters to deceive Stewart that consent had been obtained.

As an example, Duggan testified that the 2004 actuarial valuation revealed that the ATL pension scheme had a market value of just over $2.6 billion, with interest and withdrawal surpluses of $366.3 million and $352.1 million respectively. Further, he said a preliminary document shown to him on the witness stand revealed that the minimum pension recommended for members of the scheme that year was $100,000 per annum.

However, by the time the 2007 actuarial evaluation was completed, Duggan said the ATL pension scheme had a market value of just over $4.6 billion.

"That would be close to a 100 per cent increase?" Junor asked.

"Around 81 per cent," Duggan replied, noting that the minimum pension recommended for members had climbed to $192,000.

"I would say the fund did well over the period," the actuary testified.

Senior Superintendent Fitz Bailey also took the witness stand and defended the police's handling of the investigations.

PRIOR KNOWLEDGE OF SEARCH

Bailey testified, during cross-examination by defence attorney Frank Phipps, that he had prior knowledge that a search was to be conducted at the home of the three accused, even though the police did not have a written statement of the allegations against them.

"Didn't you tell them, 'You can't go search the people's house until you have something in writing'?" Phipps questioned.

"It was necessary for the search … . I take responsibility for it," Bailey responded.

"You accept that no proper investigation was done in relation to the complaint that was made to you?" Phipps pressed.

"No, I don't accept that, sir," the senior superintendent replied.

The trial has been adjourned until March 10.