Thursday, June 13, 2013

Reopen Solid Energy inquiry - Labour

Online Reporter
Labour MP Clayton Cosgrove will ask the Auditor-General to re-open an inquiry into Solid Energy following an independent review of Treasury's monitoring of the failed energy company.
Mr Cosgrove, Labour's State Owned Enterprises spokesman, says the Auditor-General has been "ill-advised" by the Government regarding reviews of how the energy company came to be in $389 million of debt and with the losses of at least 700 jobs.
"There is no review of what happened, no accountability to the taxpayer because ministers have blocked every review." 
Late last month Auditor-General Lyn Provost ruled out an inquiry into Solid Energy's management, governance and oversight, but left the door open for an investigation "if circumstances change to such an extent that proper public accountability is undermined".
"There are already a number of reviews under way about Solid Energy's performance and the monitoring of the Crown's investment in the company, and the Treasury has released a range of information on these matters," she said at the time.
"Those reviews need to run their course."
Mr Cosgrove says Finance Minister Bill English and Minister of State Owned Enterprises Tony Ryall were too slow to act before the company went belly-up.
"They could have changed the statement of corporate intent, could have sacked the board. They are politically and commercially negligent."
Accountancy firm Deloitte carried out the review during March this year and its findings were released today.
The company said with hindsight, ministers would have been justified in sacking Solid Energy's board.
It found no material problems with Treasury's monitoring of Solid Energy.
Secretary and Chief Executive to the Treasury Gabriel Makhlouf says that for Treasury to have taken more action "would have required it to express a lack of confidence in a board with a sound track record at a time the company was performing well."
3 News

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