National Australia Bank Opens in AUSMAQ Case - 3 October 2000

National Australia Bank today began its opening address in the case brought against it by Idoport Pty Limited ("Idoport") and Market Holdings Pty Limited (in liquidation), two companies associated with Mr John Maconochie.

In the New South Wales Supreme Court today, Mr Tom Bathurst QC, appearing for the National, said that the defendents' case is that, whichever way the plaintiffs put their case, it will fail.

Mr Bathurst said the claims against the National were extravagant and not supported by the terms of the AUSMAQ consulting agreement.

He said independent experts would give evidence that the AUSMAQ system was, as acquired, "absolutely worthless."

"The state of the system and Mr Maconochie's companies when they went to the National Australia Bank was, without putting too fine a point on it, that they were broke and they had nowhere else to go."

National spokesman, Ross Pinney said that after two years the National was pleased to be able to put its case to the Court.

"The National bought 100 per cent of AUSMAQ for $7 million. It was a venture capital type investment. Despite subsequently investing more than $28 million, AUSMAQ is yet to turn a profit," Mr Pinney said.

"In light of the extravagance of the plaintiffs' claims, the National has no alternative but to defend this case through the Courts. We remain resolved to seeing the case through to its completion."

The case began in the Supreme Court of New South Wales before Justice Einstein on 24 July 2000.

The plaintiffs opened their case for seven weeks, and the Courts have been closed over the Olympic break.

Mr Pinney also said a challenge by the National to the appointment of the liquidator to Market Holdings Pty Ltd and an application restraining entry into certain funding agreements relating to the AUSMAQ case would be heard by Mr Justice Young on October 19.