More on corporate fraud predicted

Press, 12 September 1988, Page 6

More on corporate fraud predicted

By

BRENDON BURNS,

political reporter

Further revelations on corporate fraud would soon emerge, said the Leader of the Opposition, Mr Bolger, last evening. This was one reason why the Government was now promising to act against white-collar crime.

Mr Bolger was responding to an address by the Minister of Justice, Mr Palmer, last Friday which outlined moves to reduce corporate fraud. These include making companies more accountable for losses they create, efforts to diminish “sharp practices” and a specialist unit of police, accounting and legal staff. Mr Bolger said Mr Palmer, after months of inaction, was now trying to make up lost ground. Already, an estimated 20,000 investors had been exposed to enormous

risks, he said, with the liquidation of Registered Securities, Ltd (R.S.L.), Landbase Securities, Ltd, and Burbery Finance, Ltd. There was more to emerge on corporate fraud, Mr Bolger predicted. This was one motivation for Mr Palmer now to act, he said. “I am sure he is petrified at the revelations that are going to emerge.” Mr Bolger said that for legal reasons he could not outline details of what further corporate fraud he expected to become public in the next few

weeks. But, he said, “It will add further to Mr Palmer’s embarrassment.” A Commission of Inquiry into white-collar crime was still necessary, months after it was first suggested by the Opposition, said Mr Bolger.

He welcomed, however, Mr Palmer’s suggestions of sterner measures to combat corporate fraud.

“It is hoped it will prevent a wholesale rip-off in the future.”