Village operator Retirees WA responds to ABC report on legal action involving former CEO’s husband

The Western Australian Not For Profit, which operates 19 retirement villages with 290 units and two aged care facilities with a total of 200 beds, runs a scheme for discounted funerals.

The organisation issued a statement on Tuesday, 27 May, after the taxpayer-funded ABC broadcast a story claiming "millions of dollars belonging to retirees who have prepaid funerals through a charity could be in jeopardy".

The report stated Retirees WA's prepaid funeral fund has been tied up in a maze of loans and investments into companies linked to Frank Pinner, the husband of Retirees WA's former Joint Chief Financial Officer and Chief Executive Officer Margaret Thomas, who is Mayor of Kalamunda, a city 30 minutes from Perth's CBD.

Retirees WA said on 27 May it "acknowledges concerns and allegations relating to past financial decisions that have been raised in reporting by the ABC."

"Internally, we have worked hard with the help of Department of Energy, Mines, Industry Regulations and Safety to significantly deepen our processes to ensure a much stronger organisation with a focus on accountability, financial oversight and internal governance.

"Retirees WA reassures members that all existing and future claims in relation to their Funeral Fund contributions will be honoured."

On Friday (30 May) after a Special General Meeting, Chief Executive Officer Henrietta de Sa said the Not for Profit had: 

• $7.7 million in cash, $3.5 million in receivables, and $132 million in properties and plant representing the retirement villages and aged care facilities;
• As of 30 June 2024, those assets were valued in the audited financial statements at $143.4 million
• Indebtedness to its bankers, aged care residents, the funeral fund and residents of its retirement villages of $119.7 million. This includes RAD balances and amounts that would become due upon residents exiting the retirement villages.

The ABC reported Retirees WA is suing Frank Pinner and his companies over what it claims is a default on a $1.5 million loan made to his company in May 2017, and another $1.5 million loan made in November 2020. The allegations are denied.

In mid-2021, the State Government's Consumer Protection department formally started investigating the governance of Retirees WA. That investigation is ongoing.