Thursday, May 17, 2018

Outrage for the week #2

Crooks, cheats, liars and charlatans...how many more adjectives could I come up with, and in Australia if we look at our many large financial institutions, you will see much the same. Carillion in the UK had many and varied fingers in pies. If you are really interested, here is a link with the full story. Here is a snip that tells you what the company actually did, and below that is self explanatory by the headline. Nothing will ever change until board members and directors of such companies are sent to gaol. Fines mean nothing more than a business expense to them. British taxpayers will have to pay the pension contributions that the company did not.

Back home in Queensland, while I doubt he will spend any or much time in gaol, at least this scum was sentenced to imprisonment for stealing from his employees by underpaying them. This is rife in Australia and should be treated the same as an employee stealing from the employer would be.

The company, which managed huge construction projects and provided government services ranging from school meals to prison maintenance and NHS cleaning, slumped into insolvency in January. More than 2,000 people have since been made redundant.

What MPs said about the collapse of Carillion and its board.
  1. “Even as the company very publicly began to unravel, the board was concerned with increasing and protecting generous executive bonuses.”
  2. Finance director Richard Adam “was the architect of Carillion’s aggressive accounting policies and resolutely refused to make adequate contributions to the company’s pension schemes, which he considered a “waste of money”.
  3. “The mystery is not that it collapsed, but that it lasted so long.”
  4. “We have no confidence in our regulators.”
  5. “The perception of Carillion as a healthy and successful company was in no small part due to its directors’ determination to increase the dividend paid each year, come what may.”
  6. “Honouring pension obligations over decades to come was of little interest to a myopic board who thought of little beyond their next market statement.”
  7. “Carillion relied on its suppliers to provide materials, services and support across its contracts, but treated them with contempt.”
  8. “The board was either negligently ignorant of the rotten culture at Carillion or complicit in it.”
  9. Richard Adam’s sale of £776,000 shares “were the actions of a man who knew exactly where the company was heading once it was no longer propped up by his accounting tricks”.
  10. “Carillion could happen again, and soon.”

23 comments:

  1. Sigh. And these are the sorts of people/businesses that our government wants to pay LESS tax.

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  2. These mongrels are EVERYWHERE. The number of so-called "managers" in charge of Indigenous corporations/community organisations who are ripping off the Indigenous communities is alarming; most alarming in that the communities complain about not seeing the monies granted by govts yet they are ignored unless a (white) middle-aged male happens to call out the accounting acrobats.

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    1. I can well imagine Jayne. All builders of their little empires. It sounds like a large broom is needed.

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  3. The bosses line their pockets, whilst the workers drown. It happens all the time, in the most lofty of places. Most companies have a 'remuneration committee', which is made-up of directors. What can you expect!

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    1. Cro, and they seem experts at remunerating themselves.

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  4. Corruption has been around since the world began...and sadly, unfortunately, it will remain hanging around like a bad smell that just won't go away!

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    1. Lee, it has but it must be at least be contained. If it ever becomes an accepted practice in the western world, we are doomed.

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  5. Didn't hear about that - dreadful it is from what I've read on your post..

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    1. Margaret, they are just bad people with a born to rule mindset.

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  6. And will they be punished for the misery they have caused? You can bet your life they won't!

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    1. Marie, probably not as they should be. I guess you were well aware of this case.

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  7. Big Business has a lot to answer for, but I bet they'll just be getting a slap on the wrist and a "naughty, naughty" form a judge.

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    1. River, that is the usual manner of punishment. Unfortunately conservative governments are inclined to protect their own. We shall see.

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  8. Anonymous10:10 pm

    Jorgensen has only spent one night in gaol pending an appeal and need only spend another 9 if he pays his workers:

    "The Federal Circuit Court on Thursday sentenced Trek North Tours owner operator, Leigh Alan Jorgensen, to 12 months' prison and fined him $84,956 after finding he breached freezing orders by transferring company funds into a trust before back paying workers.
    The court ordered Mr Jorgensen's sentence be suspended after 10 days' jail but only if he paid the fine. The Cairns man spent the night in jail on Thursday but was released on Friday after he appealed and secured an urgent stay against his conviction."

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    1. Anonymous11:30 am

      I posted a correction b4 but it seems to have gone missing. Jorgensen has to pay the fine rather than the workers to escape more than 9 more days inside, if his appear is upheld.

      Actually his imprisonment/fine is not for what he did to the workers but for his defiance of court/tribunal orders.

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    2. Thanks Marcellous. It's all much clearer now. I really do think employers should go to gaol for gross non payment of wages, and superannuation.

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  9. Such a shame when people let money become their god, if it wasn't effecting so many people I'd almost pity them!

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    1. Yes Grace. He was cheating workers for his own profit. Disgrace not even almost pity from me.

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  10. It shouldn't, but it always surprises me, the people that have no compassion, no heart, no honor.

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    1. Sandra, a trio of words and they are severely lacking in those counts.

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  11. That makes me angry even to read about it. When I also hear stories of the massive payments to Trumps' personal attorney, for favor from Trump, from huge fat rich companies, I know we little people count for nothing, just little slaves so the fat asses can get richer.

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    1. Strayer, we are talking millions of dollars. yet Trump has been bankrupt how many times?

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