Trouble at the mill

By Jock Anderson

Friday 16th July 2004

Mates who bought the former Fletcher Challenge-Citic timber mill in Rotorua are now at loggerheads over claims of impropriety.

Directors Philip Verry, his son Martin Verry and Gary Catley look set to be locked in High Court wrangling after Catley's shock dumping from the Waipa Corporation board this week.

It is understood the claims of misconduct, being made by both sides, resulted from a March 2 board meeting where a remuneration review was discussed. Verry said it was agreed by the Waipa Corporation board he would receive an advance of $600,000 against his entitlement to remuneration for work done last year to bring the Waipa mill transaction together.

Verry, who claimed there were complaints about Catley's conduct, said Catley also received $200,000 from the company "which is not matched by value, mine is."

He said there was conduct causing difficulties for the company but refused to go into details because of board confidentiality.

Catley, who declined to comment on the fallout, wanted a shareholders' meeting chaired by Rotorua forensic accountant Dennis Parsons. Phil Verry headed this off with a directors' meeting that removed Catley from the Waipa board. Catley was said to be considering High Court action to injunct the move.

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