As investors in Banksia Securities, we would like some answers:
Were Banksia warned more than one year ago that they faced financial problems? If so, why were they not required by the Australian Securities and Investments Commission to do a complete audit on their operation?
Why did Banksia auditors and accountants not become aware of the financial position when they did their yearly tax returns?
Why did Banksia management not become aware of the financial position sooner? They were managing a Financial Lending Operation and you would expect them to be experts in this field, yet they still accepted deposits up until the day it all fell over.
Investors believed their money was being invested in houses, commercial buildings and farm properties and that Banksia would only finance on first mortgages and only up to 60 per cent of sworn valuation. This left a leeway of 40 per cent if the mortgagee defaulted.
If Banksia retained approximately one-and-a-half to two per cent of interest they charged with $650 million out on loan, one would think they would be a very profitable company. If this is correct, how can you go wrong?
Banksia occupies a large modern complex in Kyabram. Do they own it or did they own this or any other real estate? If so are all the assets to be sold off and money received used to offset any losses investors may have?
Has any investor in Banksia been able to access their investment before its due maturity date? If so, then why have they?
Each month many thousands of dollars will be paid into Banksia Trust Account from mortgage and interest payments. What is to happen to this money?
We are now informed that the Trust Company is the secured creditor to Banksia. Does Banksia owe any money to this company?
If so, what effect will this have on Banksia investors returns?
The majority of investors in Banksia is either nearing retirement or is retired and has invested their savings in Banksia. They do not want to wait years before Banksia is wound up.
If the mortgages that Banksia are holding are as secure as investors have been told, the Administrators should have no trouble disposing of them at not a big loss to investors.
The collapse of Banksia is going to create a lot of stress for many elderly people and bring on many health problems.
No we do not expect the government to bail us out. All we ask is that they look after the investors' interest and ensure that the people that invested in Banksia are protected by the relevant laws covering business failure.
Finally it is a fallacy that Banksia attracted investors chasing high interest. They were one of the most conservative companies outside the banking system. Their interest rates on term deposits were approx one percent higher than banks.
Please fellow investors do not blame the staff at Banksia, they are as devastated as us with what has happened.
BILL RADLEY & KELVIN PITCHER