The latest NSW ICAC report imposes an impossible due diligence standard on investors
The latest NSW ICAC report imposes an impossible due diligence standard on investors. According to the counsel advising ICAC We would not go so far as to describe Mr Macdonald's decision to grant the exploration licence to DCM as so unreasonable that no reasonable decision-maker could have so decided ..... nor does it suffice to make out .... that a minister acted contrary to the advice, however considered and cogent, of his or her public servant advisers ..... Counsel also says .... the evidence was insufficient to demonstrate that any of Messrs Maitland, Ransley or Poole were actually aware that Mr Macdonald was proposing to act with partiality. ICAC is saying investors should have delved more deeply than the inferences to be drawn from these conclusions. If their due diligence did not extend beyond this, they should incur the consequences. Totally impractical.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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