administrators sacked

It goes from bad to worse:

Paul Garvey
Thursday, 15 March 2007

THE administrators of failed Queensland miner BMA Gold have stepped down after corporate watchdog ASIC identified one of the firm's partners as a major shareholder in the gold play.



Core from BMA Gold's Twin Hill project

ASIC had raised concerns over the fact that a partner at Ferrier Hodgson not only held a major stake in the company through his private company, but was also involved in BMA's acquisition of the Twin Hills gold project as a director of the vendor company.

As a result of the conflict, the Supreme Court of Queensland ordered Deloitte to become a special purpose administrator of BMA.

ASIC deputy executive director of enforcement Allen Turton said administrators must be, and be seen to be, impartial.

"The court's decision confirms that disclosure after accepting an appointment in circumstances that may give rise to a real risk and perception of a conflict of interest, is not adequate to overcome the perceived or actual conflict," he said.

"This action serves to remind registered liquidators to carefully consider the issue of conflicts before accepting any appointment to act."

BMA collapsed at the end of February with debts of $2.2 million after a poor reconciliation of actual grades with those of the mining plan.