Damning report puts heat on State Trustees

By Benjamin Millar

A woman in her 70s with bipolar and dementia had her life possessions sent to the tip and more than $2000 was taken from the bank account of a pensioner in his 80s to pay for someone else’s fines in just two bungles unearthed in a damning report on the State Trustees.

Victorian Ombudsman Deborah Glass last week tabled her investigation into the Footscray-based agency, which manages the finances of around 10,000 Victorians unable to look after their own affairs.

Ms Glass said her investigation, sparked by an increase in complaints to her office, found State Trustees had failed some of the most vulnerable people in Victoria, including one client whose file was handled by up to 48 different staff in 14 months.

The investigation unearthed multiple cases where State Trustees had failed to ensure client’s bills were paid on time, neglected to claim entitlements that could have helped clients, and failed to consult with clients regarding their wishes.

Ms Glass said many clients were left with “an overwhelming sense of powerlessness”.

“The evidence of dissatisfaction, directly impacting on State Trustee clients’ quality of life, is too substantial to be treated as other than systemic,” she said.

Ms Glass has made 14 recommendations to State Trustees and various state government departments, calling for a review of State Trustees’ governance and status as a state-owned company. State Trustees and most government departments have accepted the recommendations.

In 30 cases reviewed in detail, State Trustees has paid or reimbursed around $65,000 to 13 clients, apologised to 11 clients and agreed to meet with five clients.

State Trustees chief executive Matt Carrick said the agency is redesigning its operating model to improve services.

“We are also providing better training, to help attract and retain skilled people, and we’re looking at how we can speed up some client payments and better communicate with our clients,” he said.

“We acknowledge the strong reliance placed on us when we administer a person’s affairs. We are committed to meeting the challenge of fulfilling the Victorian community’s expectations of us in carrying out this important role.”