26 Feb 2015

Super Fund answers to MPs over loan

7:35 pm on 26 February 2015

The Guardians of the Superannuation Fund say they've reviewed the circumstances that led to the loss of $200 million, because of a loan made to a Portuguese bank.

The fund loaned the money to Banco Espirito Santo last year as part of a $1 billion deal organised by the American investment firm Goldman Sachs.

All the investors in the deal are now suing the Central Bank of Portugal after they were excluded from a bail out deal.

Super Fund executives appeared before Parliament's Commerce Committee today.

The fund's board chair Gavin Walker told MPs the board had two main questions for management.

"Was this decision made within the delegated authorities that exist with the managment team? And two, was it consistent with the investment policies that have been approved by the board? I can assure you that the independent review found in the positive on both those matters."

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