Adjudication No. 1128 (July 2001; re-issued November 2001)

The Australian Press Council has dismissed a complaint against an article headed How Skase got our company in the Focus section of The Australian on 20 January 2001.

Dudley Braham complained that the article was harmfully inaccurate, that his privacy had been invaded, and that his reputation would be damaged.

The article reported on how Christopher Skase had become "the cuckoo in the nest" of the Tasmanian publicly-listed company Nettlefolds, ultimately taking it over. He was appointed a director at the instigation of Mr Braham, who had met him when Skase made a friendly takeover of Hardy Bros in Melbourne, and whom Skase retained as chairman of that company.

Following the death of Len Nettlefold, chairman of Nettlefolds, Mr Braham married his widow and became chairman in his place.

The article, written by Tim Blue, says that as a director and privy to information about company members selling shares, Skase quietly built a stake in Nettlefolds, managing to conceal the full extent until he was ready to launch his takeover. The article claims that "how Skase grew wealth in his early days is inextricably linked to the Nettlefolds of Tasmania".

The profit from buying and selling Nettlefolds is estimated by the writer at about $4 million; by the complainant at $1.5 million. However it is not denied that Skase made a substantial profit on the transaction. Nor is the series of events that threw Skase and Dudley Braham together and that Skase secretly engineered from his position as a director to take over the public company.

Complicating the article is the fact that Robt Nettlefold, a private family company, existed at the time of the takeover, and still exists today with Mr Braham as chairman. There is dispute about the timing and impact of some investments of the family company, but this is peripheral to the public company activities.

To illustrate "the Skase skills as a flatterer" the article also uses a story about Christopher and Pixie Skase visiting Braham's sick wife with a large hamper and an offer of use of their private jet. The writer says that a family member who was present told him of the incident. Dudley Braham says that the hamper was delivered by courier, and contained one small bottle of champagne and one small bottle of caviar. The offer of the use of the private jet is not disputed.

The article was wrong in its statement that Mr Braham married the former Mrs Len Nettlefold 10 months after her husband's death. The correct figure was 19 months.

Following publication of the article, solicitors acting for Mr Braham demanded publication of an apology from the newspaper. This was refused, but a personal apology offered for the inaccuracy regarding the remarriage.

The story is clearly of public interest, illustrating the machinations of Skase and their legacy for a family. The article relied on information supplied by other family members and an officer of the company. Perhaps the writer should have talked with Mr Braham, but there is no suggestion of improper behaviour by anyone other than Skase himself.

Christopher Skase's rise and fall is now part of Australian business history. Along the way he used many people in the worst sense to achieve his ends. To be reminded of how they were taken in by him may be hurtful to many of these people. Nettlefolds was but one of the victims.

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