Hollinger described as ‘corporate kleptocracy'

[UpInArms]

http://www.theglobeandmail.com/servlet/story/RTGAM.20040831.wholling0831/BNStory/Business/

Hollinger International Inc.'s special committee delivered its long-awaited report into alleged financial wrongdoing among company executives Tuesday, describing the company as a “corporate kleptocracy” with an overwhelming record of abuse.

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“To fully gauge the level of Black and Radler's disregard for shareholder interests, one must step back from individual transactions and note the myriad of schemes, fiduciary abuses and fraudulent acts that were used to transfer essentially the entire earnings output of Hollinger over a seven-year period to the controlling shareholders.”

The report chronicled events at Hollinger — which became a U.S. public company in 1994 — over the past decade. But during that time, the value of the publishing company's assets and staff was far outweighed by the actions of its top executives.

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“Not once or twice, but on dozens of occasions Hollinger was victimized by its controlling shareholders as they transferred to themselves and affiliates more than $400-million (U.S.) in the last seven years,” the report charged.

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