Ten former directors and executives of James Hardie learned their fate yesterday. The former chief executive was banned from managing a company for fifteen years - and fined $ 350,000. The others were given a lesser fine, and banned for a five year period.
The offence for which they were punished was willfully misleading both the public and the stock exchange that a compensation scheme for asbestosis victims was fully funded. In fact, there was a shortfall of over a billion dollars - and they knew about it.
James Hardie made products containing asbestos in the full knowledge that this was a dangerous substance and that exposure would result in fatal illnesses. Despite this, they continued it's use because it contributed to profits.
Company management used every ruse in the book to avoid their obligations, including moving their head office to Holland, where different laws were in place.
The perpetrators have received their punishment, but their victims are still left in no-mans-land. The compensation fund will run dry in about two more years and Hardies is crying poor because the recession has decreased profits - and now they are again on the move - this time to Ireland.
It seems that nothing has really changed. James Hardie has no real compassion for the people they bestowed with a painful death and if they can wriggle out of topping up that compensation fund they will do so.
The legal system has only done half the job. Punishment is one thing. Holding a reluctant company to it's legal obligations seems to be slipping through the cracks !
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