QFNZ Accountability
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QFNZ Accountability
Qantas New Zealand executive accepts blame
20.07.2002
By DANIEL RIORDAN
All but one of Qantas New Zealand's seven directors are off the hook after the failed airline's chief executive, Kevin Doddrell, fell on his sword yesterday.
The six directors include some of the country's biggest business names.
Mr Doddrell, also a director, pleaded guilty to three charges of failing to file financial accounts on time, and could be fined up to $300,000 under the Financial Reporting Act 1993.
His case, being heard in the Auckland District Court, has been adjourned until Tuesday.
The Companies Office dropped the same charges against Ken Cowley, Fred Watson and David Belcher, after previously abandoning its cases against Trevor Farmer, David Skeggs and Rob Campbell.
Mr Cowley, Mr Watson and Mr Belcher did not appear in court yesterday, but each sent in a high-powered legal team - including former Air New Zealand chairman Jim Farmer, QC, representing Mr Belcher, the merchant banker who stitched together the deal to buy the airline.
The airline's collapse in April last year left creditors about $136 million out of pocket. The liquidators are still sifting through the rubble but do not expect to return unsecured creditors more than 20c in the dollar.
The Crown accepted that the failure to file the accounts for the June 2000 year by the statutory deadline of December 31 had not contributed to the airline's collapse almost five months later.
Crown counsel Hugh Rennie, QC, argued that there was no substantive reason the accounts could not have been completed in time, and said there had clearly been deficiencies in the company's corporate governance.
Companies Office enforcement unit manager Shane Keohane said afterwards that by pleading guilty, Mr Doddrell had accepted the directors' failure, and the public interest would not be served by trying to prosecute the other three directors.
Although Mr Rennie asked for Mr Doddrell to be fined $25,000, Judge Fred McElrea said it was not appropriate for counsel to suggest figures, given the prosecution was being brought under a relatively untested piece of legislation.
Mr Doddrell's lawyer, Paul Davison QC, told the court his client found himself in a "modest" financial position, but with enough money in the bank to meet a fine similar to the amount proposed by the Crown.
Mr Doddrell sat through almost three hours in court, only to have Judge McElrea decide it was getting too late to conclude matters.
Asked outside court if his fellow directors would be chipping in for any fine he had to pay, Mr Doddrell shook his head and refused to answer further questions.
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I suppose it is a step in the right direction for getting directors more accountable for their actions. As the article mentions, the airline had already lost so much from industrial action that it would have folded anyway. Maybe the loss of confidence by the travelling public and in particular business travellers who deserted in droves wasn't about to change overnight.
20.07.2002
By DANIEL RIORDAN
All but one of Qantas New Zealand's seven directors are off the hook after the failed airline's chief executive, Kevin Doddrell, fell on his sword yesterday.
The six directors include some of the country's biggest business names.
Mr Doddrell, also a director, pleaded guilty to three charges of failing to file financial accounts on time, and could be fined up to $300,000 under the Financial Reporting Act 1993.
His case, being heard in the Auckland District Court, has been adjourned until Tuesday.
The Companies Office dropped the same charges against Ken Cowley, Fred Watson and David Belcher, after previously abandoning its cases against Trevor Farmer, David Skeggs and Rob Campbell.
Mr Cowley, Mr Watson and Mr Belcher did not appear in court yesterday, but each sent in a high-powered legal team - including former Air New Zealand chairman Jim Farmer, QC, representing Mr Belcher, the merchant banker who stitched together the deal to buy the airline.
The airline's collapse in April last year left creditors about $136 million out of pocket. The liquidators are still sifting through the rubble but do not expect to return unsecured creditors more than 20c in the dollar.
The Crown accepted that the failure to file the accounts for the June 2000 year by the statutory deadline of December 31 had not contributed to the airline's collapse almost five months later.
Crown counsel Hugh Rennie, QC, argued that there was no substantive reason the accounts could not have been completed in time, and said there had clearly been deficiencies in the company's corporate governance.
Companies Office enforcement unit manager Shane Keohane said afterwards that by pleading guilty, Mr Doddrell had accepted the directors' failure, and the public interest would not be served by trying to prosecute the other three directors.
Although Mr Rennie asked for Mr Doddrell to be fined $25,000, Judge Fred McElrea said it was not appropriate for counsel to suggest figures, given the prosecution was being brought under a relatively untested piece of legislation.
Mr Doddrell's lawyer, Paul Davison QC, told the court his client found himself in a "modest" financial position, but with enough money in the bank to meet a fine similar to the amount proposed by the Crown.
Mr Doddrell sat through almost three hours in court, only to have Judge McElrea decide it was getting too late to conclude matters.
Asked outside court if his fellow directors would be chipping in for any fine he had to pay, Mr Doddrell shook his head and refused to answer further questions.
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I suppose it is a step in the right direction for getting directors more accountable for their actions. As the article mentions, the airline had already lost so much from industrial action that it would have folded anyway. Maybe the loss of confidence by the travelling public and in particular business travellers who deserted in droves wasn't about to change overnight.
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Oh how big of him to fall on his sword! Bull bloody cr@p!!
As far as not continuing prosecutions (not in the public interest), how about the interests of the 1200+ employees who have been knocked out of a job due to mismanagement, siphoning of funds outside the country and many other dodgy practices. Don't even go there as to try to blame the pilots. Cowley in particular needs to be held accountable. He was the one pulling Doddrells's strings. Man - when are people going to wise up?!?!?!?!?
Oh - by the way. Where in the article does it mention the industrial action?
As far as not continuing prosecutions (not in the public interest), how about the interests of the 1200+ employees who have been knocked out of a job due to mismanagement, siphoning of funds outside the country and many other dodgy practices. Don't even go there as to try to blame the pilots. Cowley in particular needs to be held accountable. He was the one pulling Doddrells's strings. Man - when are people going to wise up?!?!?!?!?
Oh - by the way. Where in the article does it mention the industrial action?
Last edited by gearupmaxpower; 20th Jul 2002 at 03:42.
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Well I kind of thought since people stopped flying with them, the loads dropped off and as a result they went to the wall. People stopped flying for them when they couldn't be sure they were going to rock up at the airport and get where they wanted to go. This wasn't on account of weather or defects as much as it was on account of management and NZALPA being unable to find a solution. I didn't think I was stretching too much to draw a few things together.
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What goes around comes around
Good to see that he's answering from the other side of the bench.
After his involvement in the Ansett debacle a couple of years back with the pilots on strike he didn't earn any kudos with the boys. Admittedly he was only carrying out the orders of management, when presenting the deals to the pilots at Ansett, but that happened during WWII from memory as well....?
Pity he couldn't be held accountable for the lack of scruples displayed too. At least this is better than nothing.
After his involvement in the Ansett debacle a couple of years back with the pilots on strike he didn't earn any kudos with the boys. Admittedly he was only carrying out the orders of management, when presenting the deals to the pilots at Ansett, but that happened during WWII from memory as well....?
Pity he couldn't be held accountable for the lack of scruples displayed too. At least this is better than nothing.
