project losses/repost, page-2

Well expressed jxkmarvin, your commentary is in line with my many years of industry experience as well as what I have heard and seen of FGE.

Some other comments;

1. The CEO relocated to Sydney, further away ( and a different time zone) from the largest project on the company's books .. Roy Hill.

2. The organisational structure appeared to have at least three layers of management between the CEO and the Project Manager for Roy Hill... A large and high risk venture. In addition the so called "Independent Engineer " that the CEO promoted to provide the oversight, was in fact an "Independent Quantity Surveyor".

3. The business had weak systems and controls. It was the responsibility of the CEO to drive the development and implementation according to the Corporate Business Plan, from what I hear.

4. The CEO's unrelenting push to rebrand the business disenfranchised and alienated the vendors of acquired businesses.

5. due diligence process to acquire it power capability was at best cursory , rushed . The consideration for the acquisition was poorly structured.

I hope that enquiries are made by the Authorities and that action is taken.