NCSC urges public Ariadne probe airing

Press, 24 October 1989, Page 27

NCSC urges public Ariadne probe airing

By

NICK BROWN

NZPA Sydney The National Companies and Securities Commission has recommended that details of the trans-Tasman investigation into the affairs of Ariadne be made public.. The NCSC’s executive director, Mr Ray Schoer, said the commission had sent the report of Mr Bob Gotterson, Q.C., to the Ministerial Council on Companies and Securities (comprising the state and federal ministers who ordered the probe in which New Zealand’s Securities Commission also participated).

“We’ve recommended that one of the volumes be published and, if the ministers are agreeable, be tabled in the Federal Parliament,” Mr Schoer, told Channel Nine’s “Business Sunday” television programme.

The report is in two volumes — the first comprising a narrative of the investigation and the second containing recommendations for prosecution and other action.

There are no plans to release the second volume for the time being. The report covers various transactions between January 1, 1987, and March 31, 1988. The NCSC specifically instructed Mr Gotterson to investigate whether Ariadne officers or agents committed any offence in dealings with New Zealand’s Renouf Corp, Judge Corp and Jarden and Co and with the Cook Islands-registered Willand, Windsmere and Orca Investments.

“Business Sunday” said it understood the report also uncovered a link between Ariadne and the failed merchant bank, Rothwells, involving the secret purchase of shares in Giant Resources, formerly the resources arm of Ariadne. The future control of Ariadne — whose sAust64o million (SNZB3I.6M) loss in 1987-88 was Australia’s largest corporate loss until Bond Corp’s result on Friday — remains up in the air. Former Ariadne chairman, Mr Bruce Judge, and Sir Ron Brierley are among several businessmen contesting board seats at Ariadne’s annual meeting on November 28.

Recent Australian media reports have speculated that the findings of the Gotterson report may not be favourable to Mr Judge’s plans of making a comeback at the company he founded. The release of the report before the annual meeting may be significant, in view of the NCSC’s opposition to Mr Judge returning to Ariadne’s board, “The Australian” newspaper has suggested. Mr Judge is a director of Ampersand International which claims a 19.7 per cent stake in Ariadne. Brierley Investments has recently acquired 11.9 per cent of the company and Essington, headed by Ariadne managing director, Mr Malcolm Edwards, owns 17.5 per cent.

Brierley Investments has lodged motions to remove all sitting directors except the chairman, Mr Barry Capp.