In Brief - This first ever whistleblower prosecution by The Australian Securities and Investments Commission (ASIC) highlights the need for human resources professionals, company executives and directors to ensure there is a comprehensive approach to whistleblower governance within their organisation. This includes policies, procedures, training and handling of complaints.
Background
TerraCom Limited (TerraCom) is an ASX-listed mining resources company. TerraCom operates the Blair Athol coal mine located in Queensland, as well as operating mines internationally.
As an aspect of their operations, TerraCom undertakes coal quality testing which forms the basis for coal prices in their commercial contracts with consumers.
On or around 9 July 2019, Mr Williams commenced employment with TerraCom as a General Manager.
Within the first month of his employment, Mr Williams raised concerns with TerraCom's Chief Executive Officer (the Second Defendant) and Chief Financial Officer (the Third Defendant), alleging that the company had falsified their coal quality results for the purpose of obtaining higher coal prices with consumers.
Mr Williams was made redundant on 13 August 2019.
On 14 August 2019, Mr Williams had a discussion with an advisor to TerraCom's Board of Directors, who subsequently became a director and Deputy Chairman (the Fourth Defendant). Mr William's reiterated his concerns and additionally advised that the companies Chief Executive Officer and Chief Financial Officer...
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