Company should undergo review
Where, indeed, is the accountability for the inappropriate actions by Forest Growth Holdings Ltd (FGHL) and the consequences?
The incomplete replies to my questions (August 1) from Dean Johnston and Clare Hadley stand testament to that.
This really warrants an independent Audit Office review of the actions of the directors, company officers and employees.
My reason are:
1. My questions as to who were responsible, was misconduct considered and what were the consequential actions were glibly met with ‘‘actions were based on’’ and ‘‘in accordance with legal advice’’. Clearly my questions were not answered and the so called ‘‘legal advice’’ has been shown to be wrong based on the fact FGHL ‘‘contravened the act’’ and significant costs and penalties have been incurred. Beating the oft overused legal advice drum as some sort of defence or explanation is not good enough.
2. In reply to two further questions, Clare Hadley states a decision as to whether it is appropriate for the council to consider this subject would be after a ‘‘discussion with Holdco’’. Holdco has three councillors and two external directors who are by position entwined in this episode. They therefore cannot be seen to be independent so I don’t understand what conversation with them is required.
The Invercargill City Council chief executive has the responsibility to put this before the elected councillors immediately with a recommendation for an Audit Office review.
To coin a phrase that’s what the CEO ‘‘is paid the big bucks for’’.
Lindsay Buckingham
The Overseas Investment Office has formally warned three companies – an Australian fund manager, a Wairarapa investment company and FGHL, a subsidiary of Invercargill City Forests Ltd, which itself comes under the Invercargill City Council’s holding company Holdco – for breaching the Overseas Investment Act by cooperating in the acquisition of sensitive land without prior consent in a deal involving the purchase of forestry land in the Wairarapa region. – Editor