Month: July 2012

Graziers may have to surrender parts of their land for a coal-seam gas pipeline after the Queensland government granted compulsory acquisition powers to a consortium of international energy giants.

The Queensland Governor-in-Council approved the pipeline for the $18.5 billion GLNG project as an “infrastructure facility of significance” on Friday, providing approval for compulsory acquisition if negotiations between gas company Santos and landholders break down.

The 420km underground pipeline will require a 40m-wide corridor through 177 properties to transport coal-seam gas from the Surat Basin to a liquefied natural gas facility in Gladstone.

Cabinet approved the Santos request for the approval, following similar agreements with two other international gas companies, as it ramps up construction to meet its deadline of export production by 2015.

Santos GLNG Pipeline manager Greg Jones said 87 of the 92 agreements were in place.

“We are currently in advanced negotiations with the remainder and we are confident that we will secure these agreements through our current landholder engagement process” he said.

A spokesman for Deputy Premier Jeff Seeney said the company could apply for compulsory acquisition only as a last resort, and that landholders were compensated and had the right to object to the Co-ordinator-General.

Companies must provide extensive evidence they had taken reasonable steps to secure land agreements, he said.

“IFS approval can only be sought for projects which meet the strict definition of a significant infrastructure facility that has the potential to contribute to the state through economic growth or new jobs and provide wider economic and social benefits to Australia, Queensland or the region” Mr Seeney said.

The GLNG project, a joint venture between Santos, Malaysian gas company Petronas, international resources firm Total and South Korea’s KOGAS, is expected to boost the state’s revenue by $4.1bn each year until 2033 and create 5000 jobs during construction.

In its application, lead partner Santos said the project would have a significant impact on Australia’s balance of trade, with agreements to total $120bn.

But AgForce president Brent Findlay urged all stakeholders to “negotiate in good faith” with realistic expectations.

He said the impact of clearing the easements could have a major impact on landholders’ farms.

“We know that they’re rushing to get the pipelines in place from the gas fields so they can start to move the gas and earn money for the state” he said.

“They need to compensate and respect the landholder.

“It’s a big impost on landholders and every piece of land is different.”

Mr Findlay said it was “absolutely unforgivable” to cut fences or leave holes on properties where stock could fall, as some landholders had reported.

(Source: Rosanne Barrett, The Australian, 17 July 2012)

About Rushmore Forensic – Compulsory Acquisition Valuations

Andrew Firth is a director of Rushmore Group. He is a forensic accountant and business valuer. Andrew has conducted business valuations across a wide range of businesses and for different court jurisdictions. This includes compulsory acquisition valuations.

He is a member of the Institute of Chartered Accountants, and the ICAA Special Interest Group in Business Valuations. He has appeared as an Expert Witness in numerous jurisdictions.

A multimillion dollar compensation payment to a Melbourne woman whose mother took the drug thalidomide during pregnancy will provide her with care for the rest of her life, her lawyers say.

UK company Diageo, which distributed thalidomide, has settled with Lynette Rowe, who was born without arms and legs.

There was no settlement with the drug’s manufacturer Grunenthal.

Ms Rowe remains the lead plaintiff in a class action against Grunenthal as negotiations with more than 100 other thalidomide victims in Australia and New Zealand continue.

Ms Rowe, 50, wept as her father Ian spoke on her behalf.

“The things she has achieved are absolutely amazing” he told reporters on Wednesday.

“You don’t need arms and legs to change the world.”

Ms Rowe’s lawyer Peter Gordon said the settlement was “more than adequate” to compensate Ms Rowe in the future.

She had struck a blow for “thalidomiders” all over the world, he said.

“We are really proud of Lynette, we are really proud of her parents Wendy and Ian” he said.

Mr Gordon described thalidomide as “the greatest pharmaceutical disaster in history“.

Thalidomide drugs were distributed in Australia and New Zealand around 1960 and 1961 by Distillers, which became part of Diageo in 1997.

Mr Gordon said executives at Diageo were “good and responsible corporate citizens“, but that Grunenthal had taken a position they deplored.

The drug was withdrawn in Australia in 1961.

(Source: News, 18 July 2012)

About Rushmore Forensic

Andrew Firth is a forensic accountant who has conducted numerous investigations and other forensic accounting engagements in both Australia and overseas. He specialises in economic loss and loss of earnings calculations, personal injury compensation and other forensic accounting services for commercial disputes.  He is a member of the Institute of Chartered Accountants and has appeared as an Expert Witness in numerous jurisdictions.

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The following article is reprinted from the BBK Blog in the UK. It describes developments in the UK’s Court of Appeal in relation to military compensation claims for servicemen killed in Iraq.

Three Court of Appeal judges are to make a decision in the next week about whether the relatives of soldiers killed in Iraq in unarmoured vehicles can pursue claims against the Government.

Private Phillip Hewett, 21, died in July 2005 when a Snatch Land Rover was blown up. The same accident also killed 2nd Lt Richard Shearer and Private Leon Spicer. Similar explosions also claimed the lives of Lance Corporal Kirk Redpath in August 2007, and Corporal Ivano Violino in September 2007.

The MOD has been accused of being negligent in failing to provide armoured vehicles. The relatives of the servicemen killed are arguing that the provision of armoured vehicles could have saved their lives.

The MOD have said that decisions about battlefield equipment are for politicians and military commanders and cannot be the subject of a negligence action.

It certainly seems a difficult case to argue against; our troops go to war and risk their lives every day; they work under tremendous pressure in extreme conditions. Is it too much to ask that the MOD protect them as far as they possibly can by providing them with sufficiently protected vehicles and armour so that the risks inherently associated with going to war are minimised? There are, of course, always going to be casualties in a war but is it not the MOD’s job to ensure that the number of these casualties is kept as low as possible and that the equipment being given to our troops does not contribute to producing them?

On the other hand, supporters of the MoD’s position will say we are fighting a war, the MOD has updated vehicles when weaknesses have been highlighted, and they have taken vehicles out of commission when they are deemed as too unsafe for our troops to use; we only need to look at the upgraded Snatch Land Rover vehicles for confirmation. Wars are inherently more dangerous now than they have ever been; can the MOD really be expected to cater for every eventuality?

There are perhaps arguments for both sides here but one thing is for certain; if the decision comes back saying that it IS possible to sue the MOD for a failure to provide armoured vehicles this may have far reaching effects on the number of military compensation claims being pursued by injured soldiers, and by relatives of those killed in service.

(Source: Vicki Reid, BBK, 26 June 2012)

About Rushmore Forensic

Andrew Firth is a forensic accountant who has conducted numerous investigations and other forensic accounting engagements in both Australia and overseas. He specialises in economic loss and loss of earnings calculations, personal injury compensation and other forensic accounting services for commercial disputes.  He is a member of the Institute of Chartered Accountants and has appeared as an Expert Witness in numerous jurisdictions.

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It could take another five months for a forensic accountant employed by Queensland Police to analyse financial records belonging to accused murderer Gerard Baden-Clay, prosecutors say.

Mr Baden-Clay is accused of killing his wife and the mother of his three daughters, Allison, in their Brookfield home in April this year.

I can’t believe for any minute that it would take five months for an investigative accountant to look into the affairs of one defendant

Lawyers prosecuting the real estate agent briefly faced Brisbane Magistrates Court today to arrange the handing over of a “voluminous” brief of evidence to Mr Baden-Clay’s defence team.

Mr Baden-Clay was due to face the court via video-link from prison, but was instead represented by his solicitor Darren Mahony.

Prosector Danny Boyle told the court the Office of the Director of Public Prosecutions was ready to hand over 330 witness statements already contained in the brief of evidence, but said it could take up to five months for a forensic accountant with Queensland Police to provide her report on Mr Baden-Clay’s financial affairs.

Mr Bolye said police were also in the process of obtaining a further 50 to 100 witness statements.

Mr Boyle said police were also waiting on computer and phone examinations, as well as results from the post-mortem.

“The post-mortem tests are outstanding … the forensics pathologist was away last week and this week until Wednesday” he said.

Magistrate Chris Callaghan said he was “flabbergasted” to hear of the lengthy delay.

“I can’t believe for any minute that it would take five months for an investigative accountant to look into the affairs of one defendant” he said.

“The defence can’t be asked to make any decisions without the full brief.”

Mr Boyle argued the accountant’s statement was a “discreet matter” compared to other matters in the brief.

However, Mr Mahony also voiced concern at the delay.

“I don’t want there to be any delay in provision of other material, because we’re waiting on the statement of one accountant” he said.

Mr Callaghan ordered that the brief of evidence, excluding the statement from the forensic accountant, be handed to Mr Baden-Clay’s legal team by August 20.

He ordered that Mr Baden-Clay face court again on September 3.

Mrs Baden-Clay’s body was found on a Brisbane creek bank 10 days after her husband reported her missing on April 20.

Earlier this month, Mr Baden-Clay was arrested and charged his 43-year-old wife’s murder and interfering with her body by moving her to the location where she was found.

Court documents have previously revealed that Mr Baden-Clay’s debts totalled about $1 million. It is alleged he stood to gain about $960,000 from his wife’s life insurance and superannuation policies.

He was refused bail and remanded in custody.

(Source: Marissa Calligeros, Brisbane Times, July 9, 2012)

Further Information – Forensic Accountant

If you would like further information about using our forensic accounting services for a financial investigation or other expert witness matter, then please contact us for an obligation free discussion.

We provide services to corporations, law firms and individuals in Sydney, Brisbane, Melbourne, Adelaide, Perth and across Australia.

The drawn-out pastoral compulsory acquisition process for the Cultana Military Base expansion has been a bureaucratic mess and the federal government has been “disrespectful” to families who have been on the land for generations, according to pastoralist Bruce Nutt.

It has taken seven years to get to pre-acquisition point, in which time involvement in the Afghanistan conflict – a key reason cited by the Australian Defence Force for expansion in the area – is being scaled back.

Despite the government’s commitment to have troops exit Afghanistan at the end of 2014, an ADF spokeswoman said a “reduction in offshore operational commitments will not result in reduced training activity“.

She said while the expanded base was primarily required for the defence force, it would also provide training options for “selected coalition partners”.

About half of Pandurra Station, Port Augusta – owned by Mr Nutt – will be ‘swallowed’ in the $59.5 million expansion.

He is fighting against the acquisition of the lease, which has been in his family since 1895, and will affect the aspirations of his grandchildren.

“I still do not believe it is in the right place and their environmental assessments have been completely off the mark” he said.

“And I worry that they are just going to be hiring out this area to foreign troops, such as the Americans, as a money-making operation, which was not stated as the expanded base’s intended use.”

He said an influx of Australian and foreign troops into the small, local communities could have negative social impacts.

Mr Nutt is also concerned that the expanded area – the existing base has severely degraded the fragile environment – will still not be big enough to offset the environmental impact, and the “net will be cast wider” next time, threatening the rest of his property.

He feels frustrated, overpowered, and devastated.

“It is a horrific situation to be in” Mr Nutt said.

“Our past, present and future are being taken away from us.  My priority is to keep my land and we will continue to fight this process.”

The four pastoral families embroiled in the army training area expansion are getting closer to holding direct negotiations with the government about the terms of the compulsory acquisitions.

The pre-acquisition process has finally started with the government flagging its intention, in extensive paid local newspaper advertisements, to acquire the pastoral properties.

(Source:  Stock Journal, June 28 issue, 2012, Louise McBride)

About Rushmore Forensic – Compulsory Acquisition Valuations

Andrew Firth is a director of Rushmore Group. He is a forensic accountant and business valuer. Andrew has conducted business valuations across a wide range of businesses and for different court jurisdictions. This includes compulsory acquisition valuations.

He is a member of the Institute of Chartered Accountants, and the ICAA Special Interest Group in Business Valuations. He has appeared as an Expert Witness in numerous jurisdictions.

 

A former US Guantanamo Bay guard will travel to Sydney this month to give evidence in David Hicks’s legal battle with the Director of Public Prosecutions.

The DPP has brought a case against Mr Hicks, arguing the profits of his memoir, Guantanamo: My Journey, are the proceeds of crime.

Brandon Neely, a guard at Guantanamo at the time of Mr Hicks’s detention, tweeted that he would give evidence in the case when it comes before the NSW Supreme Court on July 30.

Mr Neely has spoken publicly of the human rights abuses at Guantanamo, and is expected to testify under oath that any evidence obtained during the time Mr Hicks was in Guantanamo was unreliable due to his mistreatment there.

Just after midnight yesterday, Mr Neely tweeted about his involvement with the case.

“Going to OZ this month to testify under oath about #GTMO & David Hicks treatment” the tweet said.

A later tweet implied he would testify in favour of Mr Hicks.

“July 30th #Sydney Aus at the Supreme Court of NSW come out & support David Hicks as the Govt attempts 2 take his profits from his book #GTMO” Mr Neely tweeted.

If the court finds the evidence against Mr Hicks was obtained illegally or improperly, the judge may choose to exclude it from the case.

The DPP decided to pursue the case after receiving an initial brief from the Australian Federal Police. A spokesperson for the acting federal Attorney-General, Jason Clare, said that there was no governmental involvement in the case.

“All prosecutions, including this one, are decisions for the independent Director of Public Prosecutions” the spokesperson said.

(Source: “Hicks guard evidence”, James O’Doherty , SMH, July 8, 2012)

Further Information on Proceeds of Crime

If you would like further information about using our forensic accounting services for a proceeds of crime or other expert witness matter, then please contact us for an obligation free discussion. We provide services to corporations, law firms and individuals in Sydney, Brisbane, Melbourne, Adelaide, Perth and across Australia.