The Tip of the Iceberg

For those who have watched a number of high profile Australian corporate disasters in recent times it wont come as any surprise that a report has shown that we lead the western world in corporate fraud. As suspected, Adler, Rich and a number of other shysters facing the music this week for alleged fraudulent corporate activity, represent only the tip of the iceberg. If the PwC report is anything to go by, there must be more than a few nervous execs at the big end of town. As for those that cashed in this week, they will tell you that it is amazing how anxieties just 'fade away' when exercising huge stock options or approving their own pay rise.

PICKS OF THE WEEK

'Economic crime' hits 47 per cent of firms, PwC says

Most Australians know their country leads the world when it comes to cricket and swimming but until yesterday our prowess at corporate fraud had been sadly neglected.

Full story:

http://www.smh.com.au/articles/2003/07/08/1057430205172.html

Retail king faces jail

A SCION of the Melbourne business establishment and one-time boyfriend of lipstick queen Poppy King, former Harris Scarfe chairman Adam Trescowthick is facing jail if convicted on 37 counts of deception related to the retailer's collapse in 2001.

Full story:

http://www.theaustralian.news.com.au/common/story_page/0,5744,6728160%255E462,00.html

Judge orders Rich to pay

A JUDGE has ordered former One.Tel boss Jodee Rich pay his corporate American Express bill of more than $300,000.

Full story:

http://www.dailytelegraph.news.com.au/common/story_page/0,5936,6725076%255E462,00.html

Atlas chiefs hit the jackpot in shares buyback

Four directors of the newly listed Atlas Group have taken home a combined $13.6 million from the specialty steel company's share buyback scheme - conducted less than a month after Atlas hit the stock exchange lists.

Full story:

http://www.theage.com.au/text/articles/2003/07/04/1057179158461.htm

Sydney Airport sheds 40pc of staff

Around 40 per cent of the full-time jobs at Sydney Airport will disappear in the next 12 months in a restructure aimed at lifting competitiveness.

Full story:

http://au.news.yahoo.com/030709/2/ks87.html

HIH UPDATE

The last week has been a busy one for Adler and his cohorts but gladly the pressure will not ease.

HIH prosecutors get a kitty of $42m

Australia's corporate regulator and federal prosecutor now have a total $42.2 million at their disposal to pursue former directors and executives of the collapsed HIH and FAI for possible breaches of corporate law.

Full story:

http://www.smh.com.au/text/articles/2003/07/03/1057179101412.htm

Court upholds penalties for Adler and Williams

An appeal by former FAI Insurances director Rodney Adler and former HIH managing director Ray Williams was largely dismissed yesterday, leaving in force stiff penalties and lengthy bans imposed by the NSW Supreme Court last year.

Full Story:

http://www.theage.com.au/articles/2003/07/08/1057430209681.html

Adler wins $1m, but loses

UP to $1 million could be handed back to Rodney Adler after a court ruled yesterday that the corporate watchdog miscalculated his financial penalty in relation to HIH. But it wasn't all good news for Adler. The NSW Court of Appeal also ruled that a 20-year ban on him being a company director remain.

Full story:

http://www.dailytelegraph.news.com.au/printpage/0,5942,6724825,00.html

Adler faces court over $10m paper trail

If former FAI managing director and former HIH director Rodney Adler was flustered approaching yesterday's court hearing on five criminal charges against him, it did not show.

Full story:

http://www.theage.com.au/text/articles/2003/07/07/1057430137473.htm

LEGISLATION NEWS

While the new ACCC chief pussyfoots about and Gerry Harvey's short term, bottom line driven argument for more stock options for his execs fell on deaf ears, leading economist Hugh Stretton argued that the AIRC should set CEO wages and that no company executive working in Australia should take home more than $500,000 per year.

Samuel's first warning

NEW Australian Competition and Consumer Commission chief Graeme Samuel yesterday said he would speak out against anti-competitive behaviour in a more subdued fashion than his predecessor, Allan Fels.

Full story:

http://www.dailytelegraph.news.com.au/common/story_page/0,5936,6710495%255E704,00.html

Virtue reality for business leaders

Australia's business leaders needed to put an end to their relentless pursuit of short-term bottom-line results, the nation's peak management body says.

Full story:

http://au.news.yahoo.com//030709/2/ks84.html

Harvey to discuss options with ASA

Gerry Harvey, executive chairman and founder of Harvey Norman, will meet the Australian Shareholders Association next week to discuss his proposed executive share option issue.

Full story:

http://www.theage.com.au/text/articles/2003/07/03/1057179092371.htm

Harvey faces showdown over executive options

ING Investment Management yesterday joined the chorus of disapproval of an executive options deal to be put to Harvey Norman's shareholders later this month, declaring it would vote against it.

Full story:

http://www.smh.com.au/text/articles/2003/07/04/1057179164048.htm

INTERNATIONAL

Condemnation for WorldCom's $1.1bn settlement

A US federal judge has approved a $US750 million ($1.1 billion) settlement by WorldCom that is designed to reimburse investors who were cheated in America's biggest accounting fraud case.

Full story:

http://www.smh.com.au/articles/2003/07/08/1057430210587.html

Microsoft cuts stock options

MICROSOFT Corp. will start giving shares of stock to employees instead of granting stock options and will record the expenses on its books.

Full story:

http://www.dailytelegraph.news.com.au/printpage/0,5942,6724836,00.html

WORLD WIDE WEB

Empowering Democracy

Problem: Corporate power and influence are increasing to the point of subverting democracy. Empowering Democracy Org has establish an Annual Conference for Corporate Campaigners to teach others the basic strategies and tactics which organisations and activists can use in corporate accountability campaigns, and lay a foundation for an infrastructure for the corporate campaign movement, while each year increasing presence and influence at a single company's annual meeting.

http://www.empoweringdemocracy.org

QUOTE OF THE WEEK

10 useful expressions for those HIGH STRESS days in the office...

1. Well, aren't we just a ray of @#$%-ing sunshine?

2. Not the brightest crayon in the box now, are we?

3. Don't bother me. I'm living happily ever after.

4. Do I look like a @#$%-ing people person?

5. This isn't an office. It's Hell with fluorescent lighting.

6. I pretend to work. They pretend to pay me.

7. You! Off my planet!!

8. Therapy is expensive, popping bubble wrap is cheap! You choose.

9. Practice random acts of intelligence & senseless acts of self-control.

10. I like cats too. Let's exchange recipes.

For further information

Contact:   Chris Owen
Email:   c.owen@labor.org.au