$24m lost on junk bonds by St Vincent?s board

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Steven Trustrum

Administration in one of Sydney's biggest hospitals have their jobs on the line after losing over $20 million on markets with money they took from trust funds. The high risk bonds were the similar variety to the ones that caused the global financial crisis originating in the United States and the board and a board of inquiry has been called as to why the doctors were allowed to use the $80 million dollars.
At the heart of the problem lies the issue as to whether the funds were actually misappropriated or not. The National Health and Medical Research council strictly prohibits the use of their funds for anything other than the specific projects named. According to those investigating, it appears that the doctors might have gambled away valuable funds. One official said the only course to take is to have an investigation by the government.

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