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February 2016 Edition

Yes we are still on the ball. The accounting corruption instigated or fosters by the Australian and New Zealand Governments so that the respective countries can "earn" many times their natural quota of summer Olympic medals and similar awards continues. Along the way the facilitating business people and politicians (ie crooks) get rich and conscious people and young people who get mixed up in the racket die or suffer extreme poverty . But the thinking public who are aware of what is going on find the matter too embarrassing to do anything to put a stop to it, or fear for their personal safety too much to do so.

The latest case of robbery is Dick Smith. In this case it is mainly the unsuspecting Australian public who have suffered and no doubt it is the Australian cheating coffers for Rio which have gained. Not that we intend trying to become experts on the Australian corruption. Dick Smith is a well known brand marketing generally wholesome products, but since the founder of the same name quit the business it has probably been less profitable than the general public think. So the promoter gets the nod from the regulation authorities to "envisage" a huge profit improvement set out as "pro-forma" income and shares are issued on the basis that the pro-forma income is real. Much of the proceeds of the big share issue goes to the sports cheating coffers but the promoters are still doing all right. Then the time comes when there is the need to pay the indicated dividend on the huge shareholding. Generally the rules say that this dividend must be paid or the subscription money must be refunded. This puts all sorts of strains on the finances. So soon after an announcement comes, that stone the crows, the company has unexpectantly come up against adverse trading conditions. And receivership and liquidation of the company will follow although the business might continue with a different owner.

The Judicial Conduct Commissioner and the Press and Broadcasting watchdogs have special responsibilities to disclose this corruption and our attention should turn to them.

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