24 March 1998
Powerscreen should ‘come clean’ over Matbro
POWERSCREEN Internationals board should make clear now which directors knew what and when about the extent of problems at its specialist tractor subsidiary Matbro, writes Lex in the Financial Times.
It comments on yesterdays report claiming that finance director Barry Cosgrove attended a meeting to discuss pricing problems at Matbro more than two weeks before the parent company issued shares without announcing the difficulties. It was nearly another two months before the pricing problems and other “malpractices”, were announced publicly, according to the newspaper.
It says the saga is turning into a can of worms that “should turn investors stomachs”. And it calls for the resignation of any directors who appreciated the extent of Matbros problems before the share placing.
The article says the KPMG auditors report into the affair should also examine the role of the non-executive directors “who, apart from the chairman, have been too quiet”.
- Financial Times 24/03/98 page 24 (Lex)