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ICAC calls for prosecution of grains board officials
29 Aug 2003
The Independent Commission against Corruption has recommended criminal charges be laid against three former executives of the NSW Grains Board, which collapsed in 2000 leaving a deficiency of $151 million. One of the three executives, Queensland manager Darren Bizzell, was found to have benefited personally, through a series of private grain dealings that lost the board $1 million.
ICAC recommended that the Director of Public Prosecutions consider prosecuting the board's former managing director, Graham Lawrence, and its chief financial officer, John Fitzgerald, for publishing fraudulent financial reports. The board's accountant, Gregory Broadfoot, was found to have acted corruptly in preparing the reports, but no recommendations for prosecution were made.
Creditors left out of pocket include the Commonwealth Bank, Rabobank, suppliers such as storage and freight companies, and interstate farmers. NSW's grain growers were compensated through a government loan after the collapse.
ICAC found the grains board embarked on a risky growth strategy as it feared losing its monopoly status and was determined to survive. Accounts were falsified to mislead directors, auditors and banks after the board lost money in grains trading and currency speculation. ICAC found that Mr Lawrence had instructed Mr Broadfoot to cover up the losses.
Sydney Morning Herald, 29/8/03.
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