Getting the plant ready for performance trials and the marketing of the Anaeco System are obviously the priority for management. Legal wrangles are distracting and costly.
Still, as a shareholder I have been told that the commissioning, performance trials and ultimately handover to the client have been delayed by months due to:
According to the MD, faults a) and b) caused 7 months of delay, the impact of fault c) has not been quantified.
- a) Leaks in process water storage tanks.
- b) Manufacturing faults in bioconversion vessel conveying systems.
- c) Defective gas analysing sensors
Whilst Monodelphous as the main contractor would be the first in line to claim redress, ANQ had to bear substantial additional costs; inability to support its marketing drive with presenting a working plant and potentially loss of good will and reputation.
The Annual Report under “Proceedings on Behalf of the Group” on page 19 does refer to any pending claims.
The statement of Comprehensive Income shows for the year 2015 costs of $7,905,307 for “Project Delivery Costs”. A good part of these and the other expenses would be due to the delays caused by the faulty equipment.
Is the inaction on this matter due to the fact that the main contractor – who happens to be a main shareholder – would be first in line to defend a claim?
Whilst I accept that the Directors have other priorities, I think they owe the many smaller shareholders an explanation. Unfortunately I cannot attend the AGM – but the question should be raised.
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