Media Release - Request for Release of PricewaterhouseCoopers Working Papers - 28 April 2004

The National has received a request from one of its Directors, Mrs Catherine Walter, to release a copy of working papers by PricewaterhouseCoopers (PwC) that were part of its inquiry into irregular foreign currency options trading earlier this year.

The National has made every effort to meet information requests by Mrs Walter and will continue to do so where possible.  However, in this case, the National does not have copies of the PwC working papers referred to by Mrs Walter.

PwC imposed strict protocols in respect of their investigation which were fully discussed with the Board and management, and overseen by governance and probity advisers, Blake Dawson Waldron (BDW).  These included controls over retention and circulation of progress updates and working drafts of their Report. 

PwC's concerns included the need for protecting the reputations of named individuals until such time as their evidence gathering was completed, the final Report was tested by the firm's quality control procedures, and legal advisers had completed their defamation review.

Accordingly, PwC's working papers were circulated on a strictly limited basis and returned or dealt with under governance procedures agreed with the National and reviewed by BDW.  All Directors were aware of and cooperated with these protocols during the investigation.

BDW subsequently confirmed the PwC Report could reasonably be considered independent in conducting the investigation and providing its Report.

The National accepted the findings of the PwC Report as fair and accurate and this is supported by the fact that the PwC Report findings were consistent with the findings and conclusions of a separate report by the Australian Prudential Regulation Authority (APRA).

The National is now focused on implementing the remedial actions outlined in the APRA report and starting the process of rebuilding and renewal that is necessary to restore shareholder value.

For further information:

Brandon Phillips
Group Manager
Group Corporate Relations
03 8641 3857 work
0419 369 058 mobile