1 week Ago By Jesinta Burton
Embattled mining billionaire Chris Ellison has expressed deep regret over the tax scandal that has cost him his role at the helm of the company he founded 32 years ago, conceding things could and should have been done differently and labelling his mistakes “a dark cloud” over his life while fronting shareholders. In a brief statement at the miner’s annual general meeting on Thursday, a downcast Ellison told shareholders he made an “error of judgment” in failing to report his personal tax and expressed regret for the impact his decision had on the business and its staff. Mineral Resources was founded by Chris Ellison, who remains its managing director.
He says he will leave the company in the next 18 months. Credit: Trevor Collens He went on to assure shareholders he had repaid all personal expenses the company footed the bill for and vowed to support the board as it searches for his replacement within the next 18 months. “I can’t express how much I hate what I have done, this is a dark cloud over my life,” he said.
“For 32 years, my focus has been on building a great Australian company. I am proud of the value I’ve created and the changes I’ve brought to the industry, and the return I have provided to shareholders. “Looking back, I accept things could have and should have been done differently around corporate governance, but those measures are now in place.
“I’ve made some mistakes along the way; I own those mistakes and take full responsibility. “I’ve built a great company, delivered extremely good returns for MinRes shareholders, employed thousands of people, created a great working environment for my employees – and delivered huge benefits to Australia. I can’t express how much I hate what I have done, this is a dark cloud over my life Chris Ellison “We have a very strong board that will ensure the ethics and governance processes are very strong going forward.
I support the board and will continue to manage this great business with all my capability and energy through this transition phase.” Ellison spoke after Mineral Resources chair James McClements opened the company’s annual general meeting by addressing the tax scandal engulfing the miner. McClements acknowledged the recent probe which uncovered founder and managing director Chris Ellison used company resources for personal gain, with the billionaire having been involved in an offshore equipment markup scheme and had staff working on his own properties and finances.
“From time to time, Chris lacked judgment and used company resources for personal matters,” he said. “The board accepts that Chris’ intention was never to cause detriment to the company or its shareholders and there were processes in place for amounts to be repaid to the company in a timely manner. Loading “As we made clear in our statement on November 4, there have also been occasions, including in respect of historical dealings with Far East Equipment Holdings Limited and the subsequent personal tax implications, where Chris lacked the judgement and integrity we would expect of our managing director.
This resulted in a range of financial penalties that we felt were appropriate and warranted in the circumstances.” McClements, who has declared he would follow Ellison by departing after 10 years with the company, insisted the related-party arrangements uncovered by the probe would remain the subject of rigorous independent testing and was committed to improved transparency. But he concluded by praising Ellison for his contribution to the company’s operations, growth and shareholder value creation.
The Osborne Park-headquartered diversified mining services company has been grappling with a plunging share price amid shock revelations by the Australian Financial Review that Ellison and four other executives had profited to the tune of millions of dollars in an offshore scheme that ran for a decade. Ellison, who remains the largest shareholder with an 11.5 per cent stake in the $7 billion miner he founded 32 years ago, has publicly apologised and vowed to fork out $18.
4m in penalties before he departs in 12 to 18 months. Ellison had maintained a low profile since the scandal was thrust into the public arena — until now. The AGM continues.
Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter . Save Log in , register or subscribe to save articles for later.
License this article Chris Ellison Mineral Resources Jesinta Burton – is a journalist with WAtoday, specialising in civil courts, business and urban development. Connect via Twitter or email . Most Viewed in Business Loading.
