Page 3941 - Week 12 - Thursday, 23 November 2006
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(1) The Rhodium Board approved the remuneration package.
(2) The salary package did not provide for a cash advance. The final employment contract for the former CEO, commencing 1 December 2005, provided for Rhodium to pay the lease costs for the Lexus motor vehicle. However, the vehicle was actually bought by Rhodium management without the knowledge or approval of the Board.
(3) The Rhodium Board approved the remuneration package. The Voting Shareholders were not advised of the remuneration package.
(4) The Government was not made aware of the remuneration package until details were provided in the context of the Auditor-General’s Performance Audit report.
Rhodium Asset Solutions Ltd
(Question No 1357)
Mr Stefaniak asked the Chief Minister, upon notice, on 19 October 2006 (redirected to the Treasurer):
(1) When were the shareholders of Rhodium briefed about progress of the company;
(2) How were they briefed and by whom;
(3) Did any of the shareholders express concern about any aspects of Rhodium’s operations; if so, when and where.
Mr Stanhope: The answer to the member’s question is as follows:
(1) Since Rhodium was established the Voting Shareholders were briefed by the Rhodium Board and the Department of Treasury on various issues including strategic directions, working capital requirements, borrowing limits, and the Statement of Corporate Intent. In addition, commencing from 21 February 2006, the Board has provided a number of briefings in relation to its response to management deficiencies in Rhodium and concerns about the conduct of the former Chief Executive Officer.
(2) The Voting Shareholders were mainly provided with written briefs. Several meetings were also held with both or one of the Voting Shareholders and either the full Board or several directors.
(3) Yes. The former Treasurer wrote to the Board on 10 June 2005 because the initial Statement of Intent was overdue. The former Treasurer also wrote to the Board on 2 November 2005 about an interview with the former Chief Executive Officer that featured in the Canberra Times and that had contained a number of errors and assertions about Rhodium’s business activities. On a number of occasions since being advised of the management deficiencies at Rhodium in February 2006, the Voting Shareholders have expressed concerns about the circumstances.
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