Review 22.10
25 July - 7 August 1997

Following last week's story on Senator Ross Lightfoot the Review has learned that the Senator and his company A-CAP Development Ltd, which is now in liquidation, was also under investigation by the Australian Securities Commission. The investigation by the Perth Office of the ASC commenced in 1990 and continued for 2 years. It followed a report to the ASC by the liquidators for A-CAP, Ferrier Hodgson, which suggested breaches of the Companies Code by directors of A-CAP.

The investigation looked at allegations of breaches of directors' duties by directors of A-CAP, and circumstances surrounding a mining lease that the company held. A spokesperson for the ASC, Irene O'Brien, told the Review that "the ASC found insufficient evidence on most of the allegations and no evidence on others", and in 1992 the investigation was dropped.

The Federal Opposition also announced last week that it was considering calling for a Senate Privileges Committee inquiry into Senator Lightfoot following the Review's revelation that the Senator had failed to declare his involvement with A-CAP Development Ltd on the Senators' Interests register. A spokesman for Senate opposition leader John Faulkner said the Opposition was likely to refer the matter to the Senate Privileges Committee.

The Senate does not sit again until August 25 and if Senator Lightfoot is found guilty by the Senate Privileges Committee for failing to declare a directorship on his pecuniary interests statement he could be censured by the Senate.

An opinion prepared for the Review by the Senate's Assistant Clerk, Peter O'Keeffe, states that a Senator should "bear in mind the purpose and spirit of their return, which is to inform the Senate and the public of private interests that might conflict with public duties and to do so in a spirit of openness, frankness and honesty." The Senate clerks' office said that all directorships have to be listed on the register of Senators' interests whether or not a given company is solvent. A failure to do so is considered a serious contempt of the Senate.

During the course of preparing the article for the previous issue, a spokesperson for the Federal Police told the Review that a previous investigation into A-CAP and Ross Lightfoot by the Perth AFP was no longer current and no charges had been laid. The Federal Police have since withdrawn their claim of an earlier investigation. However, Sgt. Graeme Clifford of the West Australian Police has now confirmed to the Review that last year the WA Police had investigated A-CAP and Ross Lightfoot but found no criminal action and closed the case.

Senator Lightfoot is still in Poland, and unavailable for comment.