A special committee working on behalf of the Hollinger International's board of directors, submitted a scathing report yesterday to the US Securities and Exchange Commission. The report accused controlling shareholder Lord Conrad Black, his right-hand man David Radler, and other Hollinger executives of "looting" the company of $400 million, equal to 95% of the company's net income in 1997-2003.
Media group Hollinger owns "The Jerusalem Post."
The report also mentioned the Hollinger's Israeli director, Shmuel Meitar, who also serves as a director at the Aurec Group.
The special committee report puts Meitar in a fairly positive light, along with Henry Kissinger, who also served on the Hollinger board, but did state that Meitar and Kissinger "certainly could have done more in reviewing [Hollinger's] numerous transactions [with companies owned by Black]."
However, the report stated that Meitar and Kissinger's "reliance on the audit committee was reasonable."
The committee was far more critical of former director Richard N. Perle, a former US Department of Defense official. The committee is demanding that Perle return a $5.4 million fee paid to him by Hollinger.
Published by Globes [online] - www.globes.co.il - on Wednesday, September 01, 2004