Harris Scarfe Holdings

HARRIS SCARFE HOLDINGS

The facts of the incident.

In chronological order the “facts”, as reported in the media, are below. This matter is still unfolding and Board members and former staff are to appear before relevant tribunals. Those appearances will add to the public knowledge of the events which culminated in the appointment of receivers.

30 March 2001; - trading in Harris Scarfe Holdings’ (HSH) shares was suspended at the request of the firm pending “a significant announcement”. The firm had previously announced that interim profit to March 2001 was down 45% on the previous year (BRW Vol 23 No 15).

3 April; - the Board appointed KPMG as voluntary administrators citing “accounting discrepancies” which became apparent after the departure of Dan McLaughlin, the Chief Operating Officer (COO) who had resigned on 27 March after 22 years service. The accounting situation related to an overstatement of stock and an understatement of liabilities. The Board had not...