September 01, 2004

Liquidity needs

The Breeden Report on the corporate mismanagement of Hollinger International by its controlling shareholders, led by Conrad Black, contains in its executive summary this happy phrase:

The Special Committee believes that the events at Hollinger were driven in large part by insatiable pressure from Black for fee income from Hollinger....to satisfy the liquidity needs he had arising from the personal lifestyle Black and his wife had chosen to lead.

This is nicely illustrated by one of the items Black is shown to have claimed in expenses:

"Summer Drinks" ($24,950).

1 Comments:

At September 01, 2004 11:17 pm, Blogger AngusF said...

If a total $400m was plundered then that's the equivalent of summer drinks * 16,000. What other expenditure was there?

I read also that:

- The auditors, KPMG, were criticised for not co-operating with the investigation. But, I wonder, what about their auditing?

- Richard Perle was paid $3m as director.

 

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