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Johnson seeking new look at woes of bank

16 Mar, 2010 11:25 AM
Alwyn Johnson is still carrying the financial scars of his sacking from the former Tasmania Bank 20 years ago. Business reporter RACHEL WILLIAMS reports.

ALWYN JOHNSON - the Launceston man who alerted the State Government to mismanagement of the then Tasmania Bank 20 years ago - wants to take his case to the new Integrity Commission.

The whistleblower who alerted the government to the bank's woes and dire financial consequences the state would face if it were to collapse is still fighting for recognition and an apology over claims he was poorly treated by the Labor government in 1990.

He says he has been brushed off by subsequent Labor premiers in his fight for adequate compensation.

He will take his case to the Integrity Commission once it begins operating in July.

Following his sacking by the bank, he alleges that then-premier Michael Field intervened to stop his home mortgage being paid out as compensation by the Trust Bank - which was formed after the Savings Bank of Tasmania acquired the Government's equity in the Tasmania Bank in 1991.

Mr Field last week said that without looking back through the case completely he would not be in a position to comment given the passing of time.

"If Alwyn still feels aggrieved and there is a mechanism to have it heard again then that is his right as a free citizen," Mr Field said.

A Treasury and Finance Department briefing note from November 1992 states that the bank had agreed to pay out Mr Johnson's $92,000 mortgage after a meeting between Mr Field and the union representing Mr Johnson.

The briefing note, obtained by Mr Johnson under Freedom of Information, said that Senator Bob Brown, then a state MP, questioned Mr Field in Parliament about Mr Johnson's situation, following which the government withdrew from the arrangement "on the grounds that it did not wish to be seen to be responding to pressure from the Greens".

Mr Johnson claims that subsequent Labor governments have perpetuated the initial decision to revoke the mortgage repayment and he is seeking compensation of $424,336.18 - for having to continue paying off his home loan at an average interest rate of 13 per cent given interest rates were 18 per cent when the saga unfolded.

His last correspondence with the Government seeking a review of his file was made to Premier David Bartlett in July 2008.

Mr Johnson said that Mr Bartlett's 10-point plan to strengthen trust in democracy and political process in Tasmania, released in August 2008, had given him hope that the matter would be dealt with.

But a September 2008 letter from Mr Bartlett acknowledging Mr Johnson's request said that he was not prepared to make an ex-gratia payment, did not wish to make any further comment and asked him not to write to him on the matter again.

When asked this week if the Government would support such an inquiry, an adviser for Mr Bartlett questioned what it had to do with the Government and said that the commission would decide whether his complaint warranted investigation.

Liberal leader Will Hodgman said that he would not interfere with the commission's independence and it was up to individuals to refer matters directly to the commission.

Greens leader Nick McKim said that the party would support a request for the commission to assess the veracity of investigating probity concerns raised.

"There have been long- standing and serious concerns surrounding Mr Johnson's treatment by those in government at the time of the Trust Bank affair and since, and it would be quite appropriate for the Integrity Commission to establish whether further investigation into these matters should occur," Mr McKim said.

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Alwyn Johnson is still fighting for recognition and an apology over claims he was poorly treated by the Labor government in 1990. Picture: PHILLIP BIGGS
Alwyn Johnson is still fighting for recognition and an apology over claims he was poorly treated by the Labor government in 1990. Picture: PHILLIP BIGGS

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