CEO of insurance company accused of funeral plan rip off admits he has no qualifications
THE chief executive of an insurer accused of ripping off and misleading Aboriginal families by signing them up to expensive funeral plans has no background in insurance or qualifications to do the job, an inquiry has heard.
Aboriginal Community Benefit Fund chief executive Bryn Jones, who is representing the company at the banking royal commission, was hired by its overseas-based founder and director Ron Pattenden, who is not himself appearing.
The Gold Coast-based private business has been pursued by the corporate watchdog in the courts for years for aggressive selling and hawking almost exclusively to Aboriginal people and falsely presenting itself as an indigenous corporation, the commission heard.
It would deduct money from Centrelink payments before people received them — an activity since made illegal — and deny payouts for suicides.
Aboriginal youth suicide rates are the highest in the world.
More than half of ACBF’s plan holders are aged under 25, and the majority are under 18 and were signed up by family.
“You hadn’t worked in the insurance industry at all,” senior counsel assisting the commission Rowena Orr QC asked Mr Jones.
“No I haven’t,” he replied.
“So what were your qualifications?” she asked.
“It was under the premise that I was to try and modernise and bring the appropriate people in that did have the relevant experience and knowledge and know-how to take the company forward,” he said.
“I was teaching children sport, and also working within the IT sector.”
“Do you have any qualifications Mr Jones?” Ms Orr asked.
“No, I don’t,” Mr Jones replied.
The commission is sitting in Darwin, where it is examining misconduct by financial companies targeting and exploiting Aboriginal people with insurance, high-interest loans and other products.
The commission previously heard that ruthless financial companies are targeting Aboriginal people with useless insurance, dud cars and high-interest loans.
Indigenous woman Tracey Walsh broken down in tears at a hearing in Darwin yesterday, explaining how she was signed up to an expensive funeral plan at age 40 by Aboriginal Community Benefit Fund, which she says misled her.
ACBF chief executive Bryn Jones defended the company at the hearing, saying it did a lot of good in the community providing funeral services which carried great significance in indigenous culture and that people might not be able to afford otherwise.
Source: https://www.news.com.au