[Greens-Media] Young Abattoir and Commonwealth Bank: further investigation needed into dodgy practices

[Lee Rhiannon]

MEDIA RELEASE
27 mAY 2010


Young Abattoir and Commonwealth Bank: further investigation needed
into dodgy practices

NSW Greens MP Lee Rhiannon has called for immediate scrutiny by ASIC
of the events surrounding the closure of the Young abottoir and an
investigation into the actions of the Commonwealth Bank in covering up
evidence of possible fraud involving the abattoir’s former owner and
his partner who worked at the bank in the mid 1980s.

Ms Rhiannon was featured in a special ABC 7.30pm Report investigation
last night: http://tiny.cc/3iac7

“Evidence that the Commonwealth Bank turned a blind eye and failed to
report possible fraud by its bank employees to police is disturbing
and needs immediate investigation,” Ms Rhiannon said.

“Because the abattoir owner Mr Edmonds was not properly investigated
by police for his conduct at the bank, he was later free to purchase
and operate the Young abattoir.

“The abattoir’s subsequent closure led to the loss of over 300 jobs,
millions left owing to local businesses and $2 million in missing
workers’ entitlements and superannuation.

“An internal investigation by the Commonwealth Bank into the actions
of the former owner and operator of the abattoir and his partner
revealed possible fraud, but the bank pulled down the shutters and
failed to report this to police.

“The Bank’s internal investigation found evidence of deceptive and
dishonest conduct, including the approval of risky loans, overvaluing
of assets, use of fake company seals, forgery of signatures and
operation of bank accounts opened with fictitious names.

“The Commonwealth Bank appears to have acted in a highly
unprofessional manner, no doubt in fear of its reputation if news of
this conduct became public.

"The public deserves to know why CBA failed to report these possible offences.

“The Young abattoir is currently back on the market and Mr Edmonds
wants to buy it.

“Investigations must to be held before this occurs to ensure similar
events do not occur in Young in future.

For more information – 9230 3551, 0427 81 568