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State Government

TAKE YOUR JOB AND SHOVE IT: $40 Billion Funds boss to go over government meddling

mikefitzpatrick The highly regarded Chairman of the Victorian government’s $40 billion Funds Management Corporation is set to leave over concerns about government interference.

He – and other board members – are believed to be concerned about the government’s handling of appointments to the board, saying they have not been adequately consulted.

Corporation insiders complain that the creation of a de facto “union” position on the board is “not appropriate in terms of corporate governance let alone making any sense at all”.

The ALP’s Party President and National Union of Workers National Secretary Charlie Donnelly was recently appointed to the VFMC board replacing Bill Shorten, the former national secretary of the Australian Workers Union.

Mike Fitzpatrick, who built a vast fortune from his own funds management business Hastings after winning AFL Premierships, Rhodes Scholarships and otherwise amassing an incredibly impressive CV, is believed to have told government insiders of his departure plans. The AFL Chairman was once approached by Labor powerbrokers to consider a run for a safe Labor federal seat.

Due to the vast amount of its taxpayer funds under management, VFMC is probably the most sensitive of Victorian government agencies and any instability there will be regarded with the highest possible level of concern in government.

In June, the corporation’s then chief investment officer quit citing worries that “bureaucracy was stifling his (investment) portfolio”.

Earlier this month The Herald Sun reported that the corporation had suffered multi-billion dollar losses in the stock market. But insiders say these mostly unrealised paper losses didn’t prompt Fitzpatrick’s decision.

Discussion

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  1. Can Labor be trusted with money? Why must they appoint union hacks all the time?

    Posted by John Cain's ghost | August 29, 2008, 12:44
  2. …or maybe its really because he’s busy being the Chairman of the AFL and a director of Rio Tinto and didnt want to stand for yet another term.

    Posted by cmfv | August 29, 2008, 19:56

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