Santoro funded Retirement Homes

Former Federal Ageing minister, Santo Santoro, gave financial backing to a $41 million capital-raising by a Brisbane property developer two weeks after the group announced the roll-out of 10 retirement villages.

Senator Santoro admitted last week to acting as a sub-underwriter for capital raisings associated with 14 companies including Watpac, which in May last year announced it would develop 10 retirement villages "from North Queensland to Ballina" in NSW with investment bank Babcock & Brown.

The capital-raising, just four months after Senator Santoro's appointment to the ministry, was announced two weeks later. Watpac sought $41.2 million to fund its push into NSW and diversification into retirement villages.

The senator resigned as minister on Friday after it emerged he had failed to disclose his role as a sub-underwriter in the 14 companies, which were among his 72 undisclosed share holdings.

A spokesman for Senator Santoro yesterday denied a conflict of interest existed because retirement villages were regulated by state governments.

"There is no conflict of interest because that's not his area of regulation of authority," the spokesman said.

On January 10, Senator Santoro included retirement villages in his overall plans for aged care.

"My vision is for the aged-care system to develop a co-located capacity, with people living in their homes near retirement villages, perhaps using some of the facilities but staying in their homes for as long as they can," he told The Australian then.