Tasmania’s main business lobby group is refusing to reveal what led to a $700,000 dollar shortfall in its accounts.
The Chamber of Commerce and Industry is planning to sell its real estate assets after auditors discovered financial anomalies and undisclosed transactions.
The result of the audit is an embarrassment for the Chamber which for the last 12 months has been lecturing the State Government on the need for better financial management.
The Chairman, Troy Harper, says the loss was discovered in the audit by accounting firm Deloitte.
“It would appear that there’s been a comprehensive failing of management and reporting to the board,” he said.
Mr Harper says criminal charges will not be pursued.
The Chief Executive, Neil MacKinnon, who succeeded Robert Wallace in March, says he commissioned the audit because he did not believe the Chamber’s accounting practises were up to standard.
The Chamber has apologised to members for the $700,000 dollar deficit which was not noticed by management or the board.
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“While the Chamber is confident it will not collapse, it admits membership, its credibility and relevance is likely to suffer.”
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• What the TCCI says …
The Board of the Tasmanian Chamber of Commerce and Industry (TCCI) has
today advised members of steps which will be taken to address its financial
position.
Chairman of the Board, Mr Troy Harper said the decision was made to inform
members of the changes within the organisation after an investigation of the
financial reporting to the TCCI by Deloitte confirmed a number of financial
anomalies and undisclosed transactions.
“Upon receiving advice from our CEO Neil MacKinnon that financial management,
reporting and oversight at the TCCI were not up to standard, I requested an
independent investigation of the financial reporting of the TCCI be undertaken by
forensic accountants Deloitte.
The Board has yesterday received this report.
“This has resulted in a predicted operating loss for the current financial year in the
vicinity of $800,000, as opposed to the original reported predicted loss of
$100,000,” Mr Harper said.
“While the Board is working hard to reduce this figure by the end of the financial
year, it will have consequences for the organisation.
“Given this, I have apologised to our members on behalf of the Board for this
development.”
“With this in mind, the Board and the CEO have adopted an immediate strategy to
address the situation, which will result in a refocussing of the organisation to core
support and advocacy for the business sector in Tasmania.
“It will also see sale of the TCCI’s real estate holdings.
“I would like to take the opportunity to reassure you that our core operations will
continue and we are confident that we have set in process appropriate checks and
balances to ensure such a situation does not occur again,” Mr Harper said.
