5 Sep 2011

Smoking Gunns. Caught Lying To The Stock Exchange

The Devolution Of Gunns
On August 25 2011 Gunns released a 'Full Year Results Briefing' to the Australian Stock Exchange. Gunns told the market 'Bulk earth works to commence in August 2011'.
That was a lie about earth works at their stalled pulp mill. No bulk earth works commenced in August because they had no equipment on site. When they did bring in equipment in September activists chained themselves to the machinery, were arrested and it was widely covered by the media. Gunns again lied about earth works on the 31st of August in a Market Update. 'The company has executed a contract for bulk earthworks at the site and these works commenced on 29 August 2011.' Gunns criminally attempted to cover-up their failure to make a 'substantial commencement' on the project in order to retain the expired pulp mill permits. They tried to do this by lying to the ASX. The proposed pulp mill site was extensively photographed from the air on August 30 and no bulk earth works had commenced. Gunns then lied to the ASX again in another  'Market Update' on August 25 about the 'settlement proposal' they had received from the state government. This is what supposedly led to their month long trading halt. 'The Company is seeking to resolve the matter expeditiously and WILL provide a further market update on Friday 26 August 2011.' That update never came because Gunns made no ASX releases at all on August 26. This is further proof that Gunns is systematically misleading The Australian Stock Exchange. Gunns continuously breaches the reporting requirements of the Corporations Act. Both ASIC and Attorney General Robert McClelland are aware Gunns are lying to the market and have so far failed to act.

1 comment:

Anonymous said...

The ASX is complicit by omission. Add to that
Gunns shonky accounting with the capitalisation of expenses means no bickies in the tin and overvalued assets when the liquidators step in. The State Govt. as a major creditor must forclose. A.N.Z with major loans to Gunns must foreclose. ASX with the need to enforce the Corporation Act must act promptly. Creditors,shareholders and general public are being let down when the laws of the nation are ignored.

Roger Law - Rosevears - Tamar Valley