Australian listed media company warned on credit cards amid CEO sex scandal
Investigators say inadequate management oversight allowed ‘significant employee fraud to be perpetrated’
Perth-based media company Seven West Media was warned it had “inadequate management oversight” of corporate credit card use which posed an ongoing risk to the company, as it dug through the expenses of former employee Amber Harrison amid a bitter workplace dispute.
Ms Harrison, 35, had been having an affair with chief executive Timothy Worner and claims Seven launched an investigation into her credit card use after she tried to end the relationship in 2014. The company later accused her of making A$262,000 (US$193,321) in unauthorised transactions and made her redundant.
A confidential report completed by Deloitte in September 2014 has emerged detailing how Seven executives and their assistants used company cards at the time, and raising questions about corporate governance and oversight.
The report shows Mr Worner racked up over A$600,000 (US$442,722) on his company card over three years, spending A$310,000 (US$228,739)in the 2012 financial year, A$160,000 (US$118,059) in 2013 and A$150,000 (US$110,680) the year after. Excluding travel expenses, his bill in those years was A$160,000, A$35,000 (US$25,825) and A$40,000 (US$29,515).
Ms Harrison meanwhile spent A$400,000 (US$295,148)over the three year period, including almost A$120,000 (US$88,544) on non-travel expenses in 2013. She agreed in July 2014 to pay back A$14,000 (US$10,330) of unauthorised transactions.
Deloitte partner Neil Gary’s forensic investigation of Ms Harrison’s credit card expenses found that “inadequate management oversight have permitted a significant employee fraud to be perpetrated and remain undetected over a number of years.”