Funny Time To Leave Cash Behind

Sydney Morning Herald

Monday May 26, 2008

Matt O'Sullivan

Forgotten savings are awaiting collection, writes Matt O'Sullivan.

INVESTMENT bankers are not the types to leave money lying around - especially during a meltdown in credit markets.

But not, it seems, the investment banker Paul Robertson Espie, 63, who lives in the battler suburb Darling Point. The chairman of the Australian Infrastructure Fund, who was once the boss of Bank of America's Australasian business, has left $3609.79 sitting in his savings account.

Espie's bank has passed the cash onto the Commonwealth, and it is available for collection.

Linwar Securities's property analyst, Richard George, will also be hoping he is the same Richard George who lives in Vaucluse. If he is he can pick up the phone to the bureaucrats to organise the collection of $740.67 that he forgot he had.

One group you'd think wouldn't misplace a dime in dire times has two bags of cash to collect.

The NSW Farmers Association of Mosman might be facing a Federal Government that is not as disposed to its farming constituents as Howard's mob, but it will at least be happy to hear it has $2909.54 squirreled away in a savings account.

Flying tools

The soaring cost of fuel is not going to dampen Frank Lowy's love for flying.

Lowy, 77, the Westfield chairman of, has brushed off shareholder concerns that the price of oil hitting the $US135-a-barrel mark may limit the number of circuits his fleet of flying gin palaces can do.

The patriarch of the shopping mall dynasty was adamant at the annual meeting on Friday that Westfield's three Global Express and one Challenger 604 jets were essential "business tools" necessary for delivering decent returns to investors.

Shareholders may nevertheless be in for a shock about Lowy's petrol bill next time it is revealed in Westfield's annual report. Last year he notched up more than $800,000 of flying time.

Just check out the running costs for the Gulfstream IV-SP partly owned by Pankaj Oswal, the Perth-based Indian billionaire who is behind Burrup Holdings. Burrup is budgeting on its Gulfstream costing $650,000 a month.

Bean counted, gone

Good to see the Allco boss David Clarke noting the "major role" of the outfit's departing bean counter. Tim Dodd, who apparently is leaving on June 12 for reasons not at all connected to a few teething problems, "played a major role in the transition" of Allco over almost two years, Clarke said.

We're sure the shareholders will also take off their hats to Dodd.

Allco is at least still breathing after a 95 per cent fall in its share price over the past year.

All is forgiven

BHP Billiton seems to have a forgiving streak.

Chris Pointon, the long-serving former chief of BHP's stainless steel materials operation, resigned in October 2006 amid speculation he had been asked to leave after the capital costs at the Ravensthorpe nickel project in Western Australia more than doubled from initial estimates.

But it turned out that BHP had assigned Pointon a seat at the opening on Friday of the $US2.2 billion mine, about two hours' drive from Esperance.

His seat was only a few rows back from Don Argus, the BHP chairman, who was seated alongside the WA Premier, Alan Carpenter, and the Federal Industry Minister, Martin Ferguson - in a marquee that seemed only just able to withstand high winds.

Carpenter was also in a forgiving mode. He surprisingly thanked a number of people for their assistance, including the former premier Richard Court.

Even the disgraced former WA resources minister and member for Kalgoorlie, John Bowler, drew a favourable mention, albeit to the snickers of some locals.

Checkout the listener

Coles's new boss, Ian McLeod, has taken a leaf out of the book of the federal Liberal leader, Brendan Nelson.

In his first day at the checkout today the Scot plans to embark on a walkabout that sounds mightily similar to the "listening tour" of the Opposition's dead man walking.

"I will be listening first and acting second," McLeod said

"My first month will be spent going out and around my stores talking to my colleagues and my customers around Australia."

We all know how successful Nelson's "listening tour" has been.

Then again, McLeod was not wanting to raise the bar too high on Friday as he outlined his "transformation" plans for the supermarket chain.

He is well aware that Coles's second-placing to Woolworths is also mightily similar to Nelson's lagging of the Prime Minister, Kevin Rudd, in the polls.

Shoppers may want to watch out for a man with a Scottish accent who wants to kiss babies.

The week that was

They say a week is a long time in politics, but it can be a long-time in the corporate sphere too.

Take the changing winds at Babcock & Brown Power.

Less than two weeks ago, at a Merrill Lynch talkfest in Singapore, its boss, Paul Simshauser, was trumpeting how the electricity generator was "well positioned for continued growth". Not to forget the outfit had an "experienced operating management team" at the helm.

It just so happened that Simshauser was talking at the "Rising Stars" conference.

And then late last week the energy suddenly went out of B&B Power. More than $500 million was wiped from its market value in two days after a few "communications issues" over a refinancing.

Simshauser was, at least, taking it on the chin on Friday.

"I'm happy to give myself a nice crisp upper cut over this whole thing," he confessed, admitting that taking a careful look at announcements before they go to the exchange is not such a bad idea.

Part of the confusion apparently arose because he was on a plane for five hours (although we'd have thought five hours was plenty of time to peruse a draft company notice).

"You know who the culprit is - that would be me, and I guess I have to cop that one on the chin."

The Babcock mother ship's boss, Phil Green, knows who you are too.

Meanwhile, we can confirm that the John Fletcher who happens to sit on B&B Power's board is not a Mr J. Fletcher, formerly of Coles Myer (although he does have some retail nous, having been a director of Foodland Associated).

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© 2008 Sydney Morning Herald

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