more snouts in the trough

Gottliebsen
Business Spectator

NEWS
8:18 AM, 27 Jul 2009

More Great Southern allegations emerge

No end to fat payouts
Insolvent agribusiness Great Southern Ltd reportedly paid its general manager of cattle, David McLeod, and his brother-in-law, Sterline Buntine, a $10.65 million commission for securing three cattle properties worth millions of dollars.

According to The Australian Financial Review, the company's 2007 annual report lists a $10.65 million commission paid to an "expert third party" for "identification and acquisition of three cattle stations."

The company said in the report that "such knowledge and expertise required for purchases of this kind was not well established in the company at this time" and the third party received $5 million in cash and the remainder in shares.

Four days after the annual report was released, the AFR says, Great Southern announced it had issued more than 2.5 million million shares to Leichhardt Pastoral Pty Ltd - of which Mr McLeod and Mr Buntine were sole directors and shareholders. The shares were then worth $5.65 million, and were listed as for a "cattle property selection agreement."

The company also told shareholders the "third party" had received "33 per cent of the gain in the value of the properties (excluding livestock)."

The AFR also says Mr Buntine is believed to be negotiating to buy about $6 million worth of cattle from Great Southern's receivers.