PEO people telecom limited

sleeper, page-14

  1. 169 Posts.
    Lachlan Murdoch became the second former One.Tel director in as many months to be chided by a judge over evidence about the telco's 2001 collapse.

    NSW Supreme Court Justice Robert Austin told Mr Murdoch to listen to questions put to him at the corporate regulator's civil case against One.Tel founder Jodee Rich and finance director Mark Silbermann.

    "Mr Murdoch, could you listen carefully to the questions before you answer them," Justice Austin said.

    "Sometimes the answer 'I do not recall' is not an answer to the question asked."

    Counsel for Mr Rich, David Williams, SC, had asked Mr Murdoch if he was in the habit of ignoring requests for discussion by then One.Tel managing director Mr Rich.

    Mr Murdoch had replied: "I don't recall conversations on such matters with Mr Rich outside of board meetings, I'm sorry."

    Mr Austin noted that Mr Murdoch had agreed an email request for discussion on board composition and year-end forecasts were important matters for a director to consider.

    "The question you are being asked about is your present assessment of the likelihood that you would have had such a discussion," the judge said.

    Mr Murdoch replied: "A discussion may likely have happened, I just don't recall, I'm sorry, your Honour."

    Mr Murdoch said it was likely he had discussions with One.Tel management prior to the May 30, 2001, failure of One.Tel but he did not remember any specifics.

    "My memory is hazy, yes," Mr Murdoch said.

    The court also heard that if Kerry Packer saw the writing on the wall in the months before the telco collapsed, Mr Murdoch did not remember hearing about it.

    He denied remembering James Packer saying that his father Kerry Packer didn't like cash-negative businesses.

    "I think that was common knowledge," Mr Murdoch said.

    Rupert Murdoch's News Corp and Kerry Packer's Publishing and Broadcasting Ltd (PBL) together lost almost $1 billion when the telco went into voluntary administration in 2001.

    Mr Rich and Mr Silbermann are being sued for $92 million by the Australian Securities and Investments Commission (ASIC) over the telco's 2001 demise.

    Last month Mr Austin interrupted a series of "I do not recall" responses by former One.Tel director and PBL chief executive Peter Yates to ask if that witness understood what was being asked.

    "You say you do not recall. I don't think that's an answer to that question," Mr Austin said at the time.

    The case continues.

 
watchlist Created with Sketch. Add PEO (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.