Paid-up rest home residents lose their home

By CATHERINE MASTERS

The old lady sits on the couch in her latest home, a walking stick propped beside her.

She never expected she would have to become "stingy" in her nineties, watching every cent she spends.

Around $100,000 of this 94-year-old's life savings disappeared when the historic rest home where she was expecting to pleasantly live out her days failed last year and was sold.

Despite paying the substantial sum to occupy a unit at the Valmai Rest Home in Cambridge, she had to pack up and find somewhere else to live.

David Russell, of the Consumer's Institute, told the Weekend Herald that cases like this happen "far too frequently" and warns old people and families to be extremely careful before signing over money.

This woman's contract said the money for her unit would be returned if the contract was terminated for any reason, but she has received only about $20,000.

Now she says she pays out nearly $600 a week to live in the new home and has worked out that she can afford to stay alive for about another five years before everything is spent.

She hopes by then she will not care what becomes of her. Although she is a bit deaf, her mind is sharp and she is in good health. She might live longer. It is a worry, she says.

"I suppose I've worried a lot. I've got stingy. I can't be generous and throw my money around and I'm not stingy at heart. If there is much future I have got to think of it."

She says she does not want any more trouble in her old age and has asked not to be identified.

But she is not alone in her plight. At the other end of the small, pretty town on the Waikato River, it is Lucia Vince's birthday.

She is 78, she thinks, but does not feel she has much to celebrate. She lived in a unit at Valmai and aside from $20,000, her money has also gone.

Now she fears she may end up at the Salvation Army and worries about the day the last of her money runs out.

"I just don't know where I'm going to go next. Of course I feel derelict. Wouldn't you? You're working all your life and you're left with nothing."

The two women have joined forces with the son of a third former resident, now dead, whose estate is owed a similar amount.

Steve Sanders says he is pursuing the matter partly because it is his inheritance but also because it is a matter of principle.

"This should not happen to old people," he says.

The three are fighting to get their money back from the former owner of the home, Eileen Flay, who now works as a caregiver at a rest home in Tararu, Thames.

Mike Lloyd, who represents all three, says Mrs Flay refused to release documents relating to his clients' money until faced with an application for her arrest.

He says on the eve of the application for arrest, a fairly drastic step in a non-criminal case, Mrs Flay finally released the information.

"She has been obstructive every step of the way. Our people have been put through huge expense, hassle and stress as a result of her failure to co-operate or supply the information," Mr Lloyd says.

Mrs Flay denies receiving any of the money for the units.

She says she lost $500,000 when Valmai failed. She blames a former manager for mismanagement.

The Ministry of Health says there were complaints about the home's standards of care and staffing levels.

Mrs Flay was the licensee and at one time had been the manager of the home. She also employed a manager, approved by the ministry.

Mrs Flay told the Weekend Herald she made nothing out of the sale of the house but received $300,000 when she sold the business. She used the money to pay debts.

Mr Lloyd says the $300,000 should have gone to repay his clients.

Other families in Cambridge did not like the way Valmai was being run and took their dependants out.

They criticised the food, the atmosphere and high staff turnover, says Alan Jones. His mother has since died but he says she went downhill after the change of ownership.

"I don't know why she [Mrs Flay] bought that place. She couldn't hold the staff and ... she sacked the best cooks."

Lunch was sometimes bread and Marmite or peanut butter, he says. Mr Jones took his mother out before the home closed, as did other families.

David Russell says people should get good, independent advice before putting a frail parent, or themselves, into a home.

"You're sinking a lot of money into something and you've got to make sure it is not put at risk because of the failure of the management of the company."

* Email Catherine Masters