Chapter 1 - First remedy pursued November 1993

Threats Made 

Threats Carried Out 

Threats were made against me by Telstra arbitration officials because I continued to assist the Australian Federal Police with their investigations into their phone and fax hacking investigations into why so many faxes were not arriving at their intended destination.  Refer page 180 ERC&A, from the official Australian Senate Hansard, dated 29 November 1994, which reports Senator Ron Boswell asking Telstra’s legal directorate:

“Why did Telecom advise the Commonwealth Ombudsman that Telecom withheld FOI documents from Alan Smith because Alan Smith provided Telecom FOI documents to the Australian Federal Police during their investigation?”

After receiving a hollow response from Telstra, which the senator, the AFP and I all knew was utterly false; the senator states:

“…Why would Telecom withhold vital documents from the AFP? Also, why would Telecom penalise COT members for providing documents to the AFP which substantiate that Telecom had conducted unauthorised interceptions of COT members’ communications and subsequently dealt in the intercepted information by providing that information to Telecom’s external legal advisers and others?” Senate Evidence File No 31

Thus, the threats became a reality. What is so appalling about this withholding of relevant documents is that - when I alerted the above aforementioned arbitration professionals that Telstra was now carrying out their threats and that I was not getting my requested FOI documents those four had promised the COT Cases we would receive in our arbitrations none of those four arbitration professionals ever investigated the disastrous impact the withholding of documents had had on my overall submission to the arbitrator. 

Those four arbitration officials mentioned above should have initiated an investigation into why an Australian citizen who had assisted the AFP in their inquiry into unlawful interception of telephone conversations was so severely disadvantaged during a civil arbitration. As shown in Price Waterhouse Coopers, one of those four professionals mentioned above, while a partner in KPMG, mislead and deceived the newly appointed Telecommunications Industry Ombudsman, John Pinnock, concerning my arbitration in which this arbitration professional had been covertly exonerated from all liability when the other three arbitration professionals allowed the $250.000 liability cap to be removed from my arbitration agreement before I signed it  Chapter 5 Fraudulent conduct.

 

Deception of the worse possible kind

Government public servants at their worst 

From June 1995 to 2011, after the Australian government declined to investigate my claims that their public servants and the Telstra Corporation withheld vital evidence from me during my arbitration in 1994 and 1995, I took these claims to the Administrative Appeals Tribunal (AAT - No V2008/1836). The respondents in that AAT hearing were the government communications regulator ACMA).

On 3 October 2008, after having submitted approximately ninety-per-cent of the documents that can now be downloaded from this website, the other ten per cent are dated after 3 October 2008, the Judge hearing my case, Mr G. Dr Friedman, advised me in front of two government lawyers representing ACMA, and several advisors in the court chambers.  

“Let me just say, I don’t consider you, personally, to be frivolous or vexatious – far from it.

“I suppose all that remains for me to say, Mr Smith, is that you obviously are very tenacious and persistent in pursuing the – not this matter before me, but the whole – the whole question of what you see as a grave injustice, and I can only applaud people who have persistence and the determination to see things through when they believe it’s important enough.”

Even though the judge hearing my case, Mr. G.D. Friedman, advised ACMA at this 2008 hearing, he found my request for documents valid. ACMA only provided me with a portion of those requested documents, which I was initially promised during my 1994/95 arbitration would be provided if I entered into my government-endorsed settlement/arbitration process. By 2010, I had yet to receive those documents via the AAT process from ACMA. I again took the government (ACMA) to task at a considerable cost (Refer to Chapter 12 - The twelfth remedy pursued).

After my May 2011 AAT / ACMA hearing (No 2010/4634), I had only received a portion of my requested Freedom of Information documents, which I originally needed to support my 1994 to 1995 Settlement/Arbitration process. This denial by ACMA to release these original requested document was made regardless of John Pinnock Telecommunications Industry Ombudsman (who was also the administrator to the COT arbitrations) officially alerting a Senate Estimates Committee (see Prologue Evidence File No 22-D) on 26 September 1997 that: 

"...In the process leading up to the development of the arbitration procedures—and I was not a party to that, but I know enough about it to be able to say this—the claimants were told clearly that documents were to be made available to them under the FOI Act."

"Firstly, and perhaps most significantly, the arbitrator had no control over that process because it was a process conducted entirely outside of the ambit of the arbitration procedures".   

I also reminded ACMA in both the 2008 and 2011 Administrative Appeals Tribunal hearing that several Senators confirmed we COT Cases should have received our 1994 requested FOI arbitration documents before and during our arbitrations; (as Chapter 12 - The twelfth remedy pursued and the following senate statements show.

Infringe upon the civil liberties

Most Disturbing And Unacceptable 

On 27 January 1999, after having also read my first attempt at writing my manuscript absentjustice.com, the same manuscript I provided Helen Handbury, sister to Rupert Murdoch, (see Rupert Murdoch - Hacked Documents) Senator Kim Carr wrote:

“I continue to maintain a strong interest in your case along with those of your fellow ‘Casualties of Telstra’. The appalling manner in which you have been treated by Telstra is in itself reason to pursue the issues, but also confirms my strongly held belief in the need for Telstra to remain firmly in public ownership and subject to public and parliamentary scrutiny and accountability.

“Your manuscript demonstrates quite clearly how Telstra has been prepared to infringe upon the civil liberties of Australian citizens in a manner that is most disturbing and unacceptable.” 

Senator Kim Carr criticised the handling of the COT arbitrations on 11 March 1999, as the following Hansard link shows. Addressing the government’s lack of power, he said:

“What I do make a comment on is the question of civil liberties and the rights of citizens to approach this parliament and seek redress for their grievances when corporate power, particularly in a publicly owned corporation, has been abused. And there can be no question that that is what is at the heart of this issue.”

And when addressing Telstra’s conduct, he stated:

“But we also know, in the way in which telephone lines were tapped, in the way in which there have been various abuses of this parliament by Telstra—and misleading and deceptive conduct to this parliament itself, similar to the way they have treated citizens—that there has of course been quite a deliberate campaign within Telstra management to undermine attempts to resolve this question in a reasonable way. We have now seen $24 million of moneys being used to crush these people. It has gone on long enough, and simply we cannot allow it to continue. The attempt made last year, in terms of the annual report, when Telstra erroneously suggested that these matters—the CoT cases—had been settled demonstrates that this process of deceptive conduct has continued for far too long.” (See parlinfo.aph.gov.au/parlInfo/search/displaychamberhansards1999-03-11)

Senator Schacht was possibly very vocal when he stated:

“I rise to speak to this statement tabled today from the working party of the Senate Environment Communications, Information Technology and the Arts Legislation Committee—a committee I served on in the last parliament—that dealt with the bulk of this issue of the CoT cases. In my time in this parliament, I have never seen a more sorry episode involving a public instrumentality and the way it treated citizens in Australia. I agree with all the strong points made by my colleagues

 on both sides who have spoken before me on this debate. What was interesting about the Senate committee investigating this matter over the last couple of years was that it was absolutely tripartisan—whether you were Labor, Liberal or National Party, we all agreed that something was rotten inside Telstra in the way it handled the so-called CoT cases for so long.

The outcome here today is sad. There is no victory for citizens who have been harshly dealt with by Telstra.” 

Significant issues do arise. I think it is appropriate to refer to the final paragraphs of the committee report. In the second to last paragraph, the report of the committee tabled by Senator Eggleston says:

Estimates of Telstra's costs in relation to the CoTs issue since the claims were made exceed $20 million ($14.285 million to 1997 and rising). Most of the expenditure has been spent, not on settlement but on administrative and legal costs. It became quite clear early in the process that the claimants had in fact been disadvantaged by malfunctions in their telephone system. It is difficult to understand why Telstra appeared to prefer to deny that there was a problem and then prolonged the difficulties in establishing the extent of that problem.

The final sentence reads:

In the Committee's view Telstra should now seek to reach a negotiated agreement with the interested parties.

If fault is to be allocated at this very early stage of the final lap, that fault lies at the door of Telstra. It really is appropriate for Telstra, a $100 billion corporation, to stop using its monopoly power, to stop retaining the services of dozens of highly paid solicitors and to come to the table and to seek to reach a negotiated agreement with these four or five persons. It is simply outrageous that Telstra, which is still a public corporation, can spend something in the order of $20 million - Senator Boswell - Some $24 million.

Senator Mark Bishop -

"I am informed by Senator Boswell it is 24 million - defending a claim when the claim before it is somewhere between $2 million or $4 million. This is simply an outrageous propostion and a waste of public money". 

They [Telstra] have defied the Senate working party. 

On 23 March 1999, after most of the COT arbitrations had been finalized and business lives ruined due to the hundreds of thousands of dollars in legal fees to fight Telstra and a very crooked arbitrator, the Australian Financial. Review reported on the conclusion of the Senate estimates committee hearing into why Telstra withheld so many documents from the COT cases: 

“A Senate working party delivered a damning report into the COT dispute. The report focused on the difficulties encountered by COT members as they sought to obtain documents from Telstra. The report found Telstra had deliberately withheld important network documents and/or provided them too late and forced members to proceed with arbitration without the necessary information,” Senator Eggleston said. “They [Telstra] have defied the Senate working party. Their conduct is to act as a law unto themselves.” 

A trip that took more than seven hours

was appalled 16 Australian citizens were so badly discriminated against

On 25 July 2002, Senator Len Harris travelled from Cairns in Queensland (a trip that took more than seven hours) to meet four other COTs and me, in Melbourne, in an attempt to ensure our claims of discrimination against the Commonwealth were fully investigated. He was appalled 16 Australian citizens were so badly discriminated against, by the then-coalition government, despite a Senate estimates committee working party being established to investigate all 21 COT-type claims against Telstra.

At a press conference on the next day, Senator Harris aimed questions at the chief of staff to the Hon Senator Richard Alston, Minister for Communications:

“Through the following questions, the media event will address serious issues related to Telstra’s unlawful withholding of documents from claimants, during litigation.

• Why didn’t the present government correctly address Telstra’s serious and unlawful conduct of withholding discovery and/or Freedom of Information (FOI) documents before the T2 float?
• Why has the Federal government allowed five Australians (from a list of twenty-one) to be granted access to some of the Telstra discovery documents they needed to support their claims against Telstra, but denied the same rights to the other sixteen?
• Why has the Federal Government ignored clear evidence that Telstra withheld many documents from a claimant during litigation?
• Why has the Federal Government ignored evidence that, among those documents Telstra did supply, many were altered or delivered with sections illegally blanked out?” (See Senate Evidence File No 56)

Also during this same press conference Senator Len Harris asked many other questions including why should an owner of a business such as the holiday camp at Cape Bridgewater literally be forced to sell that business because Telstra had still been unable to fix the ongoing telephone problems that Senator Richard Alston himself had investigated in 1992, ten years previous and concluded were affecting Mr Smith's holiday camp. The same telephone problems which Mr Smith raised in his 1993/94 arbitration and was still raising with Telstra in 2001, seven years after the arbitration process had failed to rectify those problems.

My beloved holiday camp

Nine years after my arbitration the ongoing phone problems ruined the lives of the new owners

 Chapter 4 The New Owners Tell Their Story

On 28 January 2003, a letter from TIO officer Gillian McKenzie to Telstra discusses the ongoing telephone problems being experienced by the new owners of my business noting:

“Mr & Mrs Lewis claim in their correspondence attached:

That they purchased the Cape Bridgewater Coastal Camp in December 2001, but since that time have experienced a number of issues in relation to their telephone service, many of which remain unresolved.

That a Telstra technician ‘Mr Tony Watson’ is currently assigned to his case, but appears unwilling to discuss the issues with Mr Lewis due to his contact with the previous camp owner, Mr Alan Smith.” (See Burying The Evidence File 10-A)

Was there a more sinister motive involved in Telstra’s technician refusing to help Darren Lewis with the ongoing phone/fax problems that, nine years before, Telstra and the arbitrator assigned to my case failed to investigate transparently? Why was this Telstra technician still holding a grudge against me in 2002/3 because of something my 1994/95 arbitration should have addressed – i.e., the ongoing phone and facsimile problems that this same Telstra technician was now refusing to help Mr Lewis with, nine years later?

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Minimizing Telstra’s liability 

It is important to note here, that in 1993-1994 before the then Australian Government Communications  regulator AUSTEL (Now ACMA) conducted their investigation into my complaints I provided them with a comprehensive log of my phone complaints which I later also supplied an updated copy to Dr Hughes (the arbitrator) on 15 June 1994 in my interim arbitration submission (see File - 7 to 9-A - AS-CAV Exhibit 1 to 47 and File 108 - AS-CAV Exhibit 92 to 127).

AUSTEL’s Adverse Findings, was compiled after the government communications regulator investigated my ongoing telephone problems. Government records  (see Absentjustice-Introduction File 495 to 551) show AUSTEL’s/ACMA adverse findings were provided to Telstra (the defendants) one month before Telstra and I signed our arbitration agreement. I did not get a copy of these same findings until 23 November 2007, 12 years after the conclusion of my arbitration.

These actions by AUSTEL/ACMA only providing Telstra a copy of their findingds on their investigations into my clim was an abuse of process. When they allowed me to commence arbitration/legal proceedings against Telstra, without the necessary documents I needed to support my claim thus allowing me to spend more than $300.000.00 in arbitration fees trying to prove something that the government had already establised  against Telstra was AUSTEL/ACMA breached their statutory obligation towards me as a citizen of Australia. 

 

Please read the following points below 

Therefore it was most important I provided a copied section of AUSTEL’s Adverse Findings from at Page 2 and 10 and from Points 23, 25, 26, 29, 32, 42, 44, 46, 47, 48, 49, 71, 76, 86, 109, 115, 130, 153, 158, 209 and 212, below because it will be apparent to the reader that the Australian government, namely ACMA should be advising the current government that their predecessors erred badly not releasing the same findings to me and the arbitrator which they only provided to Telstra, the defendants in my arbitration.

In simple terms, by AUSTEL only providing Telstra with a copy of their AUSTEL’s Adverse Findings in March 1994, not only assisted Telstra during their defence of my 1994/95 arbitration it also assisted Telstra in 2006, when the government could only assess my claims on a sanitized report prepared by AUSTEL and not their AUSTEL’s Adverse Findings.

These actions by AUSTEL (now ACMA) was an abuse of process when they allowed me to commence arbitration/legal proceedings against Telstra, without the necessary documents I needed to support my claim.. To have allowed me to spend more than $300.000.00 in arbitration fees trying to prove something that the government had already proved against Telstra was an abuse of process. AUSTEL/ACMA breached their statutory obligation towards me as a citizen of Australia.

This discrimination has ruined my life and that of my partner Cathy.

Please also note I have only copied below 29 of the 212 points in the government's secret findings, which I have named AUSTEL’s Adverse Findings.

Page 2 – "Mr Smith has had an ongoing complaint about the level of service for some time .....customer was originally connected to an old RAX exchange, which had limited junctions brtween Portland and Cape Bridgewater, Thus congestion was a problem for all customers on the Cape Bridgewater exchnage. The exchange was up graded to an RCM parented back to the Portland AXE 104".  

Page 10 – “Whilst Network Investigation and Support advised that all faults were rectified, the above faults and record of degraded service minutes indicate a significant network problem from August 1991 to March 1993.”

Point 23 – “It is difficult to discern exactly who had responsibility for Mr Smith’s problems at the time, and how information on his problems was disseminated within Telecom. Information imparted by the Portland officer on 10 February 1993 of suspected problems in the RCM [Cape Bridgewater unmanned switching exchange]“caused by a lighting (sic) strike to a bearer in late November” led to a specialist examination of the RCM on March 1993. Serious problems were identified by this examination.”

Adequacy of Response 

Point 25 – "It should also be noted that during the period of time covered by this chronology of significance events it is clear 

• Telecom had conducted extensive testing 
• Cape Bridgewater Holiday Camp frequestly reported problems with the quality of telephone service
• both the camp and Telecom were receiving confirmation of reported from other network users
• major faults were identified more through persitense reporting of probles by customer than through testing of the network 
• customers in the Cape Bridgewater area also complaining of similar problems

Point 26 – "The chronology of significant events demonstrates that Telecom conducted estensive testing and Telecom rectified faults without delay when faults were identified. It is clear however, that

• Cape Bridgewater Holiday Camp was exposed to significant network problems over an extended period of time 
• Telecom testing did not not detect all of the network problems affecting Mr Smith".

Telecom's Approach to reaching Settlement 

Point 27 – "As is discussed under allegation in more detail throughout this document, Telecom's failure to adequately identify Mr Smith's network problems challenges the bases of Senior Telecom Management's approach to the resolution of Mr Smith's complaints and his claims for compensation etc, etc 

Point 29 – "A fundamental issue underlying Telecom's settlement with Mr Smith was the question of whether Telecom had taken reasonable steps to comprehensively diagnose the standard of Mr Smith's telephone service. This is an important point as settlement took place on the bases that both parties agreed Mr Smith was receiving an acceptable standard of service at the time of settlement. Mr Smith maintains he was under considerable financial pressure to reach settlement, leading him to accept Telecom's assurances of his services at the time of settlement."

Point 32 – "Telecom's communications with Mr Smith in the months prior to settlement uniformaly argued that the Cape Bridgewater Holiday Camp was at an acceptable level and that Telecom was capable of rapidly rectifying faults as they occured."

Point 42 – “Some important questions are raised by the possible existence of a cable problem affecting the Cape Bridgewater Holiday Camp service. Foremost of these questions is why was the test call program conducted during July and August 1992 did not lead to the discovery of the cable problem. Another important question is exactly how the cable problem would have manifested in terms of service difficulties to the subscriber.”

Point 44 – “Given the range of faults being experienced by Mr Smith and other subscribers in Cape Bridgewater, it is clear that Telecom should have initiated more comprehensive action than the test call program. It appears that there was expensive reliance on the results of the test program and insufficient analysis of other data identifying problems. Again, this deficiency demonstrated Telecom’s lack of a comprehensive and co-ordinated approach to resolution of Mr Smith’s problems.” 

Point 46 –“File evidence clearly indicates that Telecom at the time of settlement with Mr Smith had not taken appropriate action to identify possible problems with the RCM . It was not until a resurgence of complaints from Mr Smith in early 1993 that appropriate investigative action was undertaken on this potential cause In March 1993 a major fault was discovered in the digital remote customer multiplexer (RCM) providing telephone service to Cape Bridgewater holiday camp. This fault may have been existence for approximately 18 months. The Fault would have affected approximately one third of subscribers receiving a service of this RCM.  Given the nature of Mr Smith’s business in comparison with the essentially domestic services surrounding subscribers, Mr Smith would have been more affected by this problem due to the greater volume of incoming traffic than his neighbours.”

Point 47 –“Telecom's ignorance of the existence of the RCM fault raises a number of questions in regard to Telecom's settlement with Smith. For example, on what bases was settlement made by Telecom if this fault was not known to them at this time? Did Telecom settle with Mr Smith on the bases that his complaints , of faults were justified without a full investigation of the validity of these complaints, or did Telecom settle on the basis of faults substantiated to the time of settlement? Wither criteria for settlement would have been inadequate, with the later critera disadvantaging Mr Smith, as knowledge of the existence of more faults on his service may have led to an increase in the amount offered for settlement of his claims".

Point 48 – “AUSTEL has been hampered in assessing Telecom’s dealings with Mr Smith by Telecom’s failure to provide files relating to Mr Smith’s complaints.”

Point 49 –: "As a result of Telecom's failure to provide file documentation relating to Mr Smith some of the following conclusions are consequently based on insufficient information. The information which is avaialble however, demonstates that on a number of issues Telecom failed to keep Mr Smith informed on matters fundamental to the assessment of his complaints". 

Point 71 –: “AUSTEL has not been provided with the documents on which the conclusion in this briefing summary were reached, such as fault reports from other Cape Bridgewater subscribers over this period or the details of the final selector fault.  It would have been expected that these documents would have been retained on file as background to the summary.  It can only be assumed that they are contained within the documentation not provided to AUSTEL.”

Point 76 – “One disturbing matter in relation to Mr Smith’s complaints of NRR [not receiving ring] is that information on other people in the Cape Bridgewater area experiencing the problem has been misrepresented from local Telecom regional manager to more senior manager.” 

Point 86 – “From examination of Telecom’s documention concerning RVA [a recorded voice announcement – not in service] messages on the Cape Bridgewater Holiday Camp there are a wide range of possible causes of this message.” 

Point 109 – The view of the local Telecom technicians in relation to the RVA problem is conveyed in a 2 July 1992 Minute from Customer Service Manager – Hamilton to Managers in the Network Operations and Vic/Tas Fault Bureau:

• “Our local technicians believe that Mr Smith is correct in raising complaints about incoming callers to his number receiving a Recorded Voice Announcement saying that the number is disconnecte. They believe that it is a problem that is occurring in increasing numbers as more and more customers are connected to AXE. [AXE – Portland telephone exchange]”

Point 115 –“Some problems with incorrectly coded data seem to have existed for a considerable period of time. In July 1993 Mr Smith reported a problem with payphones dropping out on answer to calls made utilising his 008 number. Telecom diagnosed the problem as being to “Due to incorrect data in AXE 1004, CC-1. Fault repaired by Ballarat OSC 8/7/93, The original deadline for the data to be changed was June 14th 1991. Mr Smith’s complaint led to the identification of a problem which had existed for two years.”

Point 130 – “On April 1993 Mr Smith wrote to AUSTEL and referred to the absent resolution of the Answer NO Voice problem on his service. Mr Smith maintained that it was only his constant complaints that had led Telecom to uncover this condition affecting his service, which he maintained he had been informed was caused by “increased customer traffic through the exchange.”  On the evidence available to AUSTEL it appears that it was Mr Smith’s persistence which led to the uncovering and resolving of his problem – to the benefit of all subscribers in his area”.

Point 140 – “It should be noted that AUSTEL’s investigation of matters relating to the RCM problem has been hampered by Telecom’s failure to make available to AUSTEL a file specifically relating to the Pairs Gains Support investigation of the RCM.  The file was requested by AUSTEL on 9 February 1994.”

Point 153 –“A feature of the RCM system is that when a system goes “down” the system is also capable of automatically returning back to service. As quoted above, normally when the system goes “down” an alarm would have been generated at the Portland exchange, alerting local staff to a problem in the network. This would not have occurred in the case of the Cape Bridgewater RCM however, as the alarms had not been programmed. It was some 18 months after the RCM was put into operation that the fact the alarms were not programmed was discovered. In normal circumstances the failure to program the alarms would have been deficient, but in the case of the ongoing complaints from Mr Smith and other subscribers in the area the failure to program these alarms or determine whether they were programmed is almost inconceivable.”

Point 158 – “The crucial issue in regard to the Cape Bridgewater RCM is that assuming the lightning strike did cause problems to the RCM om late November 1992 these problems were not resolved till the beginning of March 1993, over 3 months later. This was despite a number of indications of problems in the Cape Bridgewater area. Fault reports from September 1992 also indicate that the commencement of problems with the RCM may have occurred earlier than November 1992. A related issue is that Mr Smith’s persistent complaints were almost certainly responsible for an earlier identification of problems with the RCM than would otherwise have been the case.”

Point 160 – “It should be noted that it is hoped that a number of issues in regard to the Cape Bridgewater RCM will be clarified when Telecom provides the documentation requested by AUSTEL.”

Point 169 –" Documentation reviewed indicates that other network users attached to the Cape Bridgewater exchange did report problems similar to those experienced by Cape Bridgewater Holiday Camp. It is also clear that problems identified in the area would have impacted on other network users as well as Cape Bridgewater Holiday Camp."

Point 209 – “Cape Bridgewater Holiday Camp has a history of service difficulties dating back to 1988. Although most of the documentation dates from 1991 it is apparent that the camp has had ongoing service difficulties for the past six years which has impacted on its business operations causing losses and erosion of customer base.”

Point 210 – “Service faults of a recurrent nature were continually reported by Smith and Telecom was provided with supporting evidence in the form of testimonials from other network users who were unable to make telephone contact with the camp.”

Point 211 – “Telecom testing isolated and rectified faults as they were found however significant faults were identified not by routine testing but rather by the persistence-fault reporting of Smith”.

Point 212 – “In view of the continuing nature of the fault reports and the level of testing undertaken by Telecom doubts are raised on the capability of the testing regime to locate the causes of faults being reported.”

 Why is the current 2023 Anthony Albanese government ignoring the above government's findings? The above evidence shows that that same evidence had been supplied to the arbitrator hearing my claims as it was provided to Telstra by AUSTEL/ACMA before we both signed our arbitration agreements on 21 April 1994; all the arbitrator needed to do was assess that evidence in AUSTEL’s Adverse Findings and reach a dollar amount regarding my financial losses. After all, they were the government's own findings reached by the AUSTEL/ACMA technical consultants who, after viewing the material that Telstra provided, made the decisions they did. Therefore who could challenge the government's own technical findings?  

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