HIH liquidator Tony McGrath has confirmed that George Sturesteps, the former right-hand man to HIH founder and CEO Ray Williams, is suing him for more than $3 million in entitlements.

Mr Sturesteps’ lawyers lodged the suit – for superannuation, holiday pay and other leave payments – last month, but the case only recently appeared in the NSW Supreme Court.

His solicitor, Dieb Khoury of Sydney firm Benjamin & Khoury, was unavailable for comment when Sunrise Exchange News contacted him this morning.

In April last year Mr Sturesteps was the 20th person disqualified by the Australian Prudential Regulation Authority (APRA) in relation to the HIH collapse. APRA found he had demonstrated a lack of knowledge, competence or diligence in carrying out his duties. Mr Sturesteps is now retired and living in Melbourne.

He held several positions at HIH, including MD of its international business. He also acted as an executive director and worked with Mr Williams for more than 30 years at HIH and previous companies.

During the HIH Royal Commission, Mr Sturesteps admitted that by 2000 HIH’s re-entry to the US market had been disastrous. He conceded that an MD overseeing losses of that kind should have been dismissed.

The commission also heard allegations that Mr Sturesteps failed to tell the HIH board about substantial shortfalls in its US workers’ compensation business.