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Fund manager sacked employee for raising concerns

Failed fund manager MFS, previously known as Octaviar is under the microscope in the NSW supreme court, with former chief operating officer David Kennedy sacked after he raised concerns over the company.

ASIC MFS/octaviar”I sent an email to the then chief executive Craig White about some concerns I had about the way some of the directors were doing their job, doing their duties,” Mr Kennedy said.

”I was considering whether I should be bringing any action against them.”

‘The next day ‘Craig called me and told me I should go home,” said Mr Kennedy.

Asked in the court if he was a director of MFS Castle, or MFS Investments Limited two of the companies that made up the larger MFS/Octaviar group in question Mr Kennedy responded: ”I have no idea. I think I was a director of 26 companies in the group.”

The Gold Coast finance group Octaviar, now known as MFS, owes creditors $2.5 billion.

When raising questions over a $130 million transaction to the company’s Dubai operations Mr Kennedy was warned off the issue by by co-founder and chief executive of the failed company, Michael King.

Mr King’s behaviour is under attack with Mr Kennedy claiming he was operating dangerously and outside his obligations.

“I had some concerns about the way directors were doing their job or duties,” Mr Kennedy said.

“He was pushing people for it to be done by yesterday,” Mr Kennedy said. “He would push for things before the Is were dotted and the Ts were crossed.”

While company secretary Kim Kercher, oversaw corporate governance, Mr Kennedy contends that she was operating under duress, due to the behaviour of Mr King and chairman Andrew Peacock.

“The chairman had a large ego,” Mr Kennedy said. “I talked to him about yelling and screaming at our IT people. He could be difficult.”

Bentleys Corporate Recovery, the liquidators appointed to MFS/Octaviar have so far recovered $145m since September last year.

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David Olsen

David Olsen

An undercover economist and a not so undercover geek. Politics, business and psychology nerd and anti-bandwagon jumper. Can be found on Twitter: <a href="http://www.twitter.com/DDsD">David Olsen - DDsD</a>

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