Fed: Committee told CBA in cover up over statements

AAP General News (Australia)
08-16-2000
Fed: Committee told CBA in cover up over statements

CANBERRA, Aug 16 AAP - The Commonwealth Bank was involved in a cover-up that is costing
customers millions of dollars, a parliamentary committee has been told.

The owners of a New South Wales north coast horticulture business have told the parliamentary
joint committee on corporations and securities that they had proof that the bank had been
caught out with a shadow ledger system.

Bruce Ford and Wendy Murray said that the system, which hid bad debts and interest
payments, had conferred the bank's tax benefits while leaving the customer in a terrible
position.

"(This is) an extensive and fraudulent operation by the Commonwealth Bank of Australia
which is systemic," Ms Murray said.

"The cost to the community is enormous and the cost to the taxpayers of Australia is enormous."

The committee is hearing submissions on the provision of bank statements to customers.

Mr Ford said that in his case the bank had refused to send out statements, and those
which he did receive had shown differences that could not be accounted for.

He said in the case of a $134,000 debt on his account, the bank had written it off
and then written it back in over a three year period without explanation.

Mr Ford said that at least one statement provided by the bank could not be believed.

"It is a complete fabrication," he said.

Mr Ford and Ms Murray gave several other examples of people across Australia who had
suffered because the true details of their banking accounts had not been revealed by the
Commonwealth.

They have called for a royal commission into the bank's activities.

The hearing is continuing with the Commonwealth Bank due to give evidence this morning.

AAP sw/mfh mg

KEYWORD: BANKS

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