![]() ![]() ![]() The Sydney-based company has been reeling under extreme regulatory scrutiny, which even led its chairman and finance chief to step down earlier this year. It has hired an external firm to review its policies for dealing with subcontractors, and is examining why allegedly corrupt conduct was not detected earlier.The class action, filed on behalf of shareholders who purchased Downer shares between July 2019 and February 2023, comes after the Australian contracting firm last December admitted to overstating its pre-tax earnings due to accounting irregularities.Īs a consequence of accounting discrepancies, Downer had revised down its FY23 underlying net profit after tax attributable forecast to between A$210 million ($140.60 million) and A$230 million from prior expectations of 10% to 20% growth on FY22's A$225.3 million.Įarlier last month, a shareholders' lawsuit was filed against Downer, claiming it breached certain disclosure obligations under listing rules while also making misleading statements over its financial performance.ĭowner shares have lost 24% since the company disclosed the irregularities and its forecast downgrade on Dec. It would also examine “what can you do to ensure that that doesn’t happen again, and continue to … drive culture,” she said.ĭowner is trying to restore its reputation and new chief executive Peter Tompkins, who succeeded Grant Fenn at the end of February, said last month that the company is reviewing how to identify dishonest, illegal and corrupt conduct. And we need to take the learnings from that, and we will take the learnings from that.”Īsked about specific lessons, Brisbane-based Ms Hollows, who earned $224,000 in her position and since last year has also been on the board’s tender risk evaluation committee, said the board would take home “how did that happen”. And we need to ensure that from a risk management perspective, that we manage those and deliver and manage those controls,” Ms Hollows said. “A board ensures that they set the tone at the top, that we have a culture, that we have governance, and we have processes and systems. ![]() ICAC has been examining claims that some former Downer employees provided confidential information and accepted cash bribes to help private companies win work on government-backed train station projects. You can repeat any section of the music at full speed, slow it down or even speed it up by. She was answering a question from The Australian Financial Review on the board’s responsibility for matters emerging in evidence at hearings held by the Independent Commission Against Corruption. Slow Down Music If youre a musician who likes to learn new songs and techniques by listening to the same piece of music over and over but wish that the music could be played a little slower, then youll enjoy 'Amazing Slow Downer'. We are all responsible,” Ms Hollows said following a speech in Brisbane on Wednesday about leadership. “The board is responsible ultimately, and so is management. Nicole Hollows, a director of Downer since 2018 and chairwoman of the company’s audit and risk committee, told a Governance Institute of Australia conference that lessons would be learned from the unravelling scandal to avoid any repeats. The risk committee chief of Downer EDI, the engineering group embroiled in a NSW corruption inquiry, said the board and management are responsible for apparent failures in the company’s processes and systems. ![]()
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