Page 588 - Week 03 - Tuesday, 12 April 1994
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In relation to the first issue, relating to the status of the directors and shareholders, there is an allegation that I have misled the house in relation to who the directors of VITAB are. The facts are that at the time the agreement was signed VITAB had advised that its directors were Messrs Kolomanski, McMahon and Dowd and that its shareholders were Kolomanski and McMahon. A company search conducted by Price Waterhouse in September 1993 also indicated that Oak Ltd was recorded as a director of VITAB. The Opposition now has raised the question of whether one of the directors of Oak Ltd is the Pacific Island Trust Co., which allegedly specialises in the setting up of tax havens. If the matter is of any relevance, it will be considered by the inquiry, of course. Advice provided by Macphillamys states that Oak Ltd is a local director of the company and is to be replaced by a Mr Dowd upon receipt of his Vanuatu residence status.
Mrs Carnell: So he was not a director?
MR BERRY: Oak Ltd is a local director of the company and is to be replaced by Mr Dowd upon receipt of his Vanuatu residence status. I understand from ACTTAB that the reason Mr Dowd does not show up on the corporate records in Vanuatu is that VITAB has been tardy in notifying his appointment to the registrar in Vanuatu. I provided you with the record of the meeting. I also understand that the board of VITAB appointed Mr Dowd as a director of VITAB, as I showed to you, on 10 October 1993. You have the document.
The second issue related to the checking of the bona fides of directors and shareholders of VITAB. I requested ACTTAB on 23 July 1993 to undertake a full check of the company and its principals and shareholders. It was not until February 1994 that I learnt from ACTTAB that they had commissioned Price Waterhouse to undertake the required company check in September 1993. I also learnt at that time that they had not yet obtained the personal checks which I had requested in relation to the directors and shareholders. I immediately at that time requested that the required character checks be obtained through the Australian Federal Police. Whilst I acknowledge that it is unsatisfactory that ACTTAB had not undertaken these checks prior to the contract being signed on 22 October 1993, the AFP advised ACTTAB's solicitors on 17 March 1993 that Messrs Kolomanski and McMahon were not recorded in their criminal indices and Mr Dowd was not adversely recorded in their criminal indices.
In relation to the financial security of the directors, the contract provides for a security bond of $50,000 to be held in the name of ACTTAB. Additionally, two directors provided performance guarantees for VITAB's obligations. Further, any changes to the company's directors or changes of shareholding greater than 5 per cent need to be submitted to ACTTAB for approval. On 21 January 1994 VITAB submitted a request for the approval of five new shareholders for VITAB. Macphillamys have arranged for company and police checks on the proposed shareholders. I think I have mentioned this in the past. As I have previously advised the Assembly, no approvals will be given until all of the required checks prove to be satisfactory. I believe that it is clear that, whilst the appropriate police checks were not carried out, the record shows that I responded quickly to have the matter rectified. All checks of VITAB have proved satisfactory. So we can stop blackening the names of these people. There is no point in it any more.
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