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Asbestos scandal forces Hardie CEO, CFO to step down
28 September 2004
SYDNEY: The top two executives of James Hardie Industries NV stepped down today, a week after a government inquiry found the company broke the law and lied to thousands of asbestos victims and financial markets.
The inquiry found Chief Executive Peter Macdonald and Chief Financial Officer Peter Shafron broke the law after the company engaged in "misleading and deceptive" conduct by underestimating its asbestos liabilities by up to $A2 billion.
James Hardie said it would appoint an acting chief executive and chief financial officer.
To preserve business continuity, Macdonald would continue to oversee the group's business operations from the United States and his position would be reviewed as matters became clearer, the company said.
It would also seek to work with unions to assist asbestos-disease sufferers.
Macdonald said in a separate statement he intended to defend himself vigorously against allegations.
Macdonald and Shafron may face criminal charges after Australia's corporate watchdog began investigating certain directors of the Australian building products firm and said it would "vigorously pursue breaches of the law".
Shares in Hardie last traded at $A5.78.
Hardie, which earns nearly three-quarters of its sales in the United States, has said it would fund a statutory scheme despite having no legal obligation to hand over any extra cash.
The stock is still more than a fifth below a record high of $A7.81 struck last October, before the foundation the company set up said it faced a shortfall in cash to meet future claims.
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Meeting to focus on hospital asbestos concerns Tuesday, 28 September 2004 There will be a meeting today between the Department of Human Services, Echuca Hospital and the Health Services Union about the welfare of hospital staff.
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