'Blind eye in Aust. on company crime'

Press, Volume CXV, Issue 33967, 7 October 1975, Page 7

'Blind eye in Aust. on company crime'

(N.Z TA. Staff Correspondent) SYDNEY. The president of the Australian Institute of Credit Management, Mr Merv Carey, is annoyed that Australians have shown little interest in his recent call for a Senate study of company crime-

Mr Carey said that he would be reviving his campaign soon, and making further calls for a study of corporate frauds. Last month Mr Carey made itwo strong speeches on the subject, alleging that legislators were turning a blind eye to much company crime. While in many cases it was true that businesses failed because of the economy, or incompetent management, in many cases they failed because of a premeditated plan to defraud, he said. Short-sightedness by legislators was encouraging "com'panv rape." Mr Carey said, estimating that the cost to creditors alone of company failures in Australia in 19741975 would be more than ssoom. “In most cases, the losses must be passed on to the consumer. and thev are a direct I cost to the national econ-

omy.” he said. “The Labour Government has a lot to say about, protecting consumers, but cracking down on corporate fraud could eventually save every Australian a dollar a week.” Mr Carey maintained that the Companies Act should have more teeth, and that company failures should be investigated more quickly. “The plundering of assets by fringe company directors is continuing unchecked, and it is most disturbing that I there is no concerted effort Iby any Australian state to I counter the actions of people ■who set out deliberately to idefraud," he said. “The Senate has unearthed : useful reforms in the stock exchanges bv making an inquiry, and. if it wanted, it could do the same in the corporate field, and save the nation a great deal of money,"