Ann: Agreement Signed to Save Arrium Australia and Whyalla, page-90

Who wants to report a breach of Australia's foreign investment rules?

You will find a link to the Australia's Foreign Investment Policy in this link:

http://compliance.firb.gov.au/compliance-reporting/

Please read the document and identify any suspected breach of Australia's foreign investment rules that applies to Arrium's sale to a foreign investor and send an email addressing your concerns (email address below).  I have identified some breaches:

The policy document says on page 8 "The  national  interest  test  also recognises  the  importance of  Australia’s  market-based  system, where companies are responsive to shareholders and where investment  and  sales decisions  are driven  by  market  forces". Is Arrium Limited responsive to its shareholders? The answer in NO. The Arrium Board appointed Grant Thorton as Voluntary Administrator and only them have the legitimate power vested by the Board to represent shareholders interests in the recapitalisation process of Arrium Limited following improved market conditions; KM does not. Is the sale of Arrium driven by market forces? The answer is NO. Recent market forces have improved substantially for Arrium Limited and the sale of Arrium is justifiable only if market forces in which Arrium operate deteriorate which is not the case, especially when one of its business units was sold for A$1.6 billion.

On page 9 it says "The  Government  considers  the  impact  of  the  investment  on  the  general  economy ... It  also  considers  ... the  level  of Australian  participation  in the  enterprise  after  the  foreign  investment  occurs,  as well  as the interests  of  employees,  creditors  and other  stakeholders." Are the interests of shareholders, whose Board appointed Grant Thorton to deal with the Voluntary Administration, being considered in the sale of Arrium Limited? The answer is NO. The sale of Arrium satisfies the interests of the lenders who a few years ago provided funding to Arrium without making proper due diligence and without any security over their loans. Had they done proper due diligence into the proposed acquisition of Southern Iron they would have rejected the loans and no acquisition would have taken place, saving Arrium Limited from going into Administration. The lenders have part responsibility in the financial difficulties faced by Arrium and as such the FIRB has to measure the interest of the lenders and shareholders in equal terms before approving the sale of Arrium.

Keep copies of your emails as these will be valuable in court later on.

From the FIRB website:

Compliance

For all reports of suspected breaches of Australia’s Foreign Investment Policy, please complete the foreign investment breach reporting form. Reports can be made anonymously.

You can also contact us by phone or email.

Subject Contact Operating hours

Compliance – commercial, agricultural or business investment 1800 050 377 +61 2 6216 1111
[email protected] 8am–5pm, Mon–Fri (AEST*) except national public holidays
*Australian Eastern Standard Time