Lateline reporter Tony Jones is joined by Shareholder activist Stephen Mayne to discuss the share dealing of ABC Learning.
Excerpts from interview:
"The slump in the fortunes of Eddy Groves and his ABC child care empire has raised questions about the future of the centres it controls."
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"There are other issues for ABC Learning as well. Their governance issues around that company that have been around for a long time."
"It fails most of the governance tests I think it's fair to say. For instance, Eddy Groves' brother-in-law has had more than $100 million worth of construction and maintenance contracts from the company, most of which hasn't gone to tender."
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"He's well known to lodge objections when community centres, or other centres, council run centres put up proposals to create a new centre. He's been known to lodge many dozens of objections to try and stop competitors opening up near him."
"Now, that's the sort of tactic you see in the shopping centre business or in the hotel business, but it's a bit unusual to see that in something like child care."
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- reprinted from ABC News
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