Go Back  British Expats > Living & Moving Abroad > Australia
Reload this Page >

Insurance The Australia Way

Insurance The Australia Way

Old Sep 4th 2002, 2:50 am
  #1  
Banned
Thread Starter
 
Joined: Aug 2002
Location: Perth Arse end of the planet
Posts: 7,037
pommie bastard has a reputation beyond reputepommie bastard has a reputation beyond reputepommie bastard has a reputation beyond reputepommie bastard has a reputation beyond reputepommie bastard has a reputation beyond reputepommie bastard has a reputation beyond reputepommie bastard has a reputation beyond reputepommie bastard has a reputation beyond reputepommie bastard has a reputation beyond reputepommie bastard has a reputation beyond reputepommie bastard has a reputation beyond repute
Default Insurance The Australia Way

You take an Australian out of Australia but not the convict out of an Australian?


Finance boss 'saw HIH fall coming'



By David Brearley
September 04, 2002
THE man whose hand was on the tap when "rivers of money" flowed from HIH to Brad Cooper was predicting the insurer's imminent demise even while approving those payments, according to evidence before the HIH royal commission yesterday.


Advertisement


Australia's second-biggest insurer called in provisional liquidators KPMG on March 15, 2001. In the week before that, HIH managing director Terry Cassidy told the commission yesterday, the company's financial services director, Bill Howard, had been spreading rumours that liquidators were hovering.

"There were certainly rumours around the office, whether it was going to be placed into provisional liquidation or not," Mr Cassidy said, adding the rumours came "mainly" from Mr Howard.

Mr Cassidy, who joined Ray Williams's insurance business in 1972, said Mr Howard had approached him on the evening of March 14, 2001, to say directors wanted to see him.

At that meeting, which Mr Howard did not attend, Mr Cassidy was "shocked" to learn the liquidation rumours were true. The commission has already heard that Mr Howard pushed through more than $2 million in payments that very day to Mr Cooper, the door-to-door burglar alarm salesman who came to HIH in 1999 as part of the disastrous $300 million FAI takeover.

The payments included the lion's share of a $1.96 million intermediary's fee for bringing together HIH and the Packer family for a property deal that went nowhere, and $148,000 to compensate Mr Cooper for exchange rate differences on an earlier share transaction.

Also on March 14, Mr Howard finalised negotiations for his own $130,000 termination fee and the write-off of his company home loan. For "no particular reason", he took the paperwork to the pay office himself.

The day before that, March 13, Mr Cooper wrote to thank Mr Howard for intervening to help achieve a $65,000 payout for log books and other items stolen from his Ferrari.

At this time, Mr Howard was driving a $118,000 BMW convertible that Mr Cooper had helped procure, but for which nobody had paid.

In his evidence to the commission in July, Mr Howard conceded he approved these payments but denied any advance knowledge of HIH's provisional liquidation, which was announced on March 15.

KPMG liquidators later estimated the company's debts at $5.3 billion.

The hearing continues.


back PRINT-FRIENDLY VERSION
pommie bastard is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us Archive Advertising Cookie Policy Privacy Statement Terms of Service

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.