THE Tasmanian Chamber of Commerce and Industry has admitted it didn't know its new managing director Andrew Scobie had been declared bankrupt in NSW in 2001.
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Mr Scobie, a Hobart businessman, had been the chamber's executive chairman since February after Craig Symons resigned in controversial circumstances after just two days as chief executive.
TCCI interim chairman Martin Rees, the Launceston managing partner of KPMG, emailed TCCI members today outlining recent changes to the business organisation and defending Mr Scobie and its financial position.
This is part of his statement:
"At its meeting on July 14 the board determined changes to its governance arrangements. The current arrangements were originally established as a short term solution whilst a permanent chief executive was appointed.
"However, as this is yet to be finalised, the Board has decided that in the interest of best practice governance, the roles of chief executive and Chairman should be independent of each other.
"Accordingly, Mr Andrew Scobie will remain on the board but will step down from his current position as executive chairman to take up the full time role of managing director of the TCCI, continuing the normal operational functions of TCCI chief executive.
"The Board has full confidence in Mr Scobie fulfilling this role and continuing to build strong value for members.
"As you are undoubtedly aware, there has been media regarding Andrew's previous bankruptcy.
"Although the board was not advised of this by Andrew, based on his performance to date, the board does not believe this matter has impacted on the operations of the TCCI and will continue to support him until a permanent chief executive can be found.
"Additionally, there has been some recent media speculation about the financial position of the TCCI. The financial position of the TCCI is sound and sustainable.
"Over the past three years, sound financial management of the organisation has enabled cash reserves to be built up that were available for investment to further the members business interests.
"The current and previous Boards made strategic decisions to apply these funds to research so as to influence specific policy outcomes and to reshape and reinvigorate the whole TCCI organisation.
"This work has re-shaped the organisation to such an extent that the board now feel the position of chief executive would be likely to attract strong calibre candidates and we will now be expediting the search for our permanent chief executive.
"Members have recently been provided with renewals and to date the response has been very strong. The final 2008-09 financial accounts will be tabled to members at the TCCI annual general meeting scheduled for September 17."
Mr Rees invited TCCI members to contact the organisation if they had any questions about the changes.
