In the Outhouse

It seems that Howard and his mates from the big end of town still have trouble discerning fact from fiction. While the Australian people wait for the chance to drag Howard over the coals for his falsely advertised war on Iraq, his mates in the banking sector are off to court for their 'reckless' bending of the truth. Little consolation for those who lost jobs this week however, more big payouts and stock options exercised for those, who it can be argued, couldn't run a choko vine over an outhouse.

WEEKLY RUNDOWN

ACCC takes CBA home loan to court

When does a nil establishment fee on a home loan mean zero establishment fee?

Full Story: http://www.smh.com.au/text/articles/2003/06/11/1055220661520.htm

Aristocrat can add fraud to its woes

As if Aristocrat didn't have enough problems...two employees have left the company amid accusations of embezzlement of more than $400,000.

Full Story: http://www.smh.com.au/articles/2003/06/17/1055828330686.html

Westpac chief banks a nice earner from his options

Westpac chief executive David Morgan pocketed a cool $1.7 million after exercising options to buy 625,000 shares at $10.83 and selling 525,000 of them for about $16.15 apiece.

Full Story: http://www.theage.com.au/text/articles/2003/06/13/1055220771129.htm

Sweet deal for CSR chief

FORMER CSR chief Peter Kirby - the South African who revived the once ailing building materials company and steered it through its recent de-merger - has walked away with a farewell pay packet of nearly $11 million.

Full Story: http://www.theaustralian.news.com.au/common/story_page/0,5744,6618809%255E462,00.html

AustMag slashes board, staff as Stanwell site mothballed

Australian Magnesium Corp has slashed its board and chief executive Rod Sharp will step down as part of a restructure of the troubled company and its Stanwell magnesium project. The company's workforce will also be cut to 230 from 350 as it halts work on the Stanwell magnesium project in central Queensland and the site is placed on care and maintenance.

Full Story: http://www.smh.com.au/text/articles/2003/06/13/1055220775635.htm

Howe Leather cuts jobs as car contract stalls

Schaffer Corporation's Victorian subsidiary Howe Leather has laid off 65 workers after the company apparently lost another supply deal with an Australian vehicle maker.

Full Story: http://www.theage.com.au/text/articles/2003/06/12/1055220706509.htm

INTERNATIONAL

U.S Excess

Seriously would not want to play a game of Monopoly with these guys...

Big kiss-off for mortgage broker's axed execs

Mortgage giant Freddie Mac's ousted chief executive is entitled to collect as much as $US40 million ($60 million) in salary, bonuses and stock, and the president who was fired for allegedly altering business notes could cash in more than $6 million in options, the company has disclosed.

Full Story: http://www.smh.com.au/text/articles/2003/06/12/1055220709447.htm

CEO pay 'shouldn't be capped'

Pay for chief executives can't be regulated, and telling employees what the appropriate balance is between work and family life is near to communism said the man billed as "the most admired chief executive officer in our time", the former chief executive officer and chairman of General Electric, Jack Welch.

Full Story: http://au.news.yahoo.com/030618/2/khnn.html

Waksal jailed for seven years for insider trades

One of America's best-known corporate crooks has been sentenced to more than seven years in a federal prison for the crime of insider trading.

Full Story: http://www.smh.com.au/text/articles/2003/06/11/1055220662861.htm

CORPORATE LEGISLATION

Or Else What?

The ASX, in its pseudo-regulatory role, has urged companies to comply with its weak voluntary corporate governance guidelines, which include having a majority of independent directors, audit committees and independent chairmen, or else...or else what? Meanwhile, the Securities Commission continues to lobby to make it easier for companies to keep the wool over the eyes of investors.

HIH judge stirs governance pot

The judge who presided over the HIH Royal Commission has questioned whether the new corporate governance principles will stop bad corporate behaviour.

Full Story: http://www.theage.com.au/text/articles/2003/06/13/1055220771194.htm

Keep options open on executive disclosure, ASIC urged

The Securities Institute has urged the Australian Securities and Investments Commission to postpone guidelines that will force companies to disclose executive share options in this year's annual reports.

Full Story: http://www.theage.com.au/text/articles/2003/06/11/1055220654730.htm

WORLD WIDE WEB

Muckraking

If you are looking for information on corporations for an activist campaign, investigative article, lawsuit, socially conscious investment, or a school paper, the Corpwatch interactive guide takes you through the steps of researching a corporation on the Internet. The guide shows how to find information about a corporation's business strategy and operations, financial status, and environmental and social record.

Available at: http://www.corpwatch.org/

QUOTES OF THE WEEK

"Today's payslip has more deductions than a Sherlock Holmes novel."

Raymond Cvikota.

"Traditionally, most of Australia's imports come from overseas."

Keppel Enderbery

For further information

Contact:   Chris Owen