Article by Sean Smith, courtesy of Kalgoorlie Miner
The Pastoralists and Graziers Association is “back in business” after creditors approved a rescue of the lobby group, five weeks after it was put into administration amid revelations of “financial misconduct”‘
A meeting of creditors on Friday backed a deed of company arrangement endorsed by administrators from RSM that will provide for the PGA’s debts to be cleared. “We’re back in business, and leaner and meaner than ever.” PGA president Tony Seabrook said.
“We’re back to doing all the things that we should be doing.” The PGA unravelled over Christmas after a $1 million-plus claim from the Australian Taxation Office for a long-running debt that was previously unknown to key officials.
The group had simultaneously been scrutinising a long-term investment account thought to hold $2m.
RSM’s administrators said last week they had investigated “the organisation’s financial irregularities” and passed on their findings to WA Police, with a request they undertake “further investigations as to whether there has been any criminal activity”
On Friday, lead administrator Jerome Mohen said that RSM and the PGA committee had co-operated to ensure “the PGA’s important services to the agriculture sector continue”.
“We recognise that this outcome is important for the PGA and its creditors, and also important for its members and the wider agricultural community too, given the significant role the PGA has played in advocating for the agricultural industry for more than 100 years,” Mr Mohen said.
RSM has argued that the deed of company arrangement was a better alternative than liquidation for creditors, the PGA and its members.
The PGA’s troubles rocked the industry, sparking Hancock Prospecting chief Gina Rinehart to swiftly swing behind the organisation.
