MELBOURNE, Australia-Lachlan Murdoch, News Corporation’s deputy chief operating officer (COO), appeared in the Australian Federal Court in Sydney on Wednesday to give evidence in the recommenced liquidators’ inquiry into the collapse of mobile operator One.Tel after a two-month recess.
Murdoch, in a pin-striped suit and tanned, told the court that he refused to pay One.Tel chiefs Jodee Rich and Brad Keeling US$1 million “over-performance” bonuses until the company achieved a A$3 billion (US$1.6 billion) capitalization.
Later this figure was reduced to A$2.4 billion (US$1.3 billion), but Murdoch had no recollection as to why the threshold was lowered again to A$600 million (US$320.3 million). Rich and Keeling were paid bonuses totaling more than A$7.5 million (US$4 million).
Murdoch, who was introduced to the company by James Packer, son of Australian media mogul Kerry Packer, also could not explain changes to One.Tel’s accounting procedures.
One.Tel collapsed in June 2001.
