for mitta, page-17

Jackgreen

It may not appear that many directors have been taken to task but IMF is doing a good job of funding litigation where directors dont do what they are supposed to have done.

In addition auditors (especially of infrastructure assets) seem to have been asking harder questions than before and they will probably seek written directors valuations to support the asset base. Its at these times that directors get wobbly - A few years ago a note on file that the directors were happy and no bank covenant issues may have been acceptable but with rating agency issues - asset value issues the whole thing seems a bit more robust these days. You also have very big highlights about other failures - Lane Cove cost $1bn and has now been sold for around $630m thats 37% below cost. These events plus the brisconnections fiasco must be grounds for audit vigilance and some good hard work.

Its by no means certain but it also is by no means certain that this will just play out to 2012. thats what drove the decision for me.