Seven executive's extra-marital affair in legal battle
Seven West Media's board of directors are under increasing pressure to take further public action to deal with the fallout of an affair between chief executive Tim Worner and a former executive assistant at the company.
The board has thus far stood by Mr Worner after details of his affair with Amber Harrison, former executive assistant to Nick Chan, and the legal stoush between Seven and Ms Harrison came to light earlier this week.
As of Wednesday 5.30pm, the company had not made an official statement since Monday night, despite a host of allegations around the affair and the aftermath.
In Monday's statement, Seven said Ms Harrison's allegations contained "wide-ranging inaccuracies and false statements".
"We are part of collegiate group. A collegiate board. We are dealing with this," former Victorian premier Jeff Kennett told The Australian Financial Review.
Mr Kennett, a non-executive director of Seven West Media, said: "We're all very aware of our responsibilities. I can't comment. I understand the media's interest."
Mr Kennett previously attacked Nine Entertainment chairman Peter Costello and the rest of the company's board following the bungled 60 Minutes Lebanon kidnapping story earlier this year.
Mr Kennett wrote an opinion piece in Melbourne's Herald Sun stating: "I cannot believe that no one at Channel 9, as I write this, has been publicly held accountable".
"Every aspect of good governance has and is being ignored and denied by those in positions of authority."
When asked about the opinion piece in April, Mr Kennett said his focus on corporate governance remained at the highest level.
"To me, it is terribly important and I can only say as a member of a collegiate board, I stand by what I wrote ... and I'm satisfied that the level of governance we are pursuing on this matter is at the highest level I demand of myself and the companies of which I am associated.
Australian Shareholders Association director Stephen Mayne said the Seven board needed to take further public action on this issue.
"The buck stops with chairman Kerry Stokes. There are serious corporate governance questions that need to be answered and shareholders have been given little information from Seven on an affair that is inflicting significant reputational damage to their company," Mr Mayne said.
"The length of time between the story breaking on Sunday night and later being picked up across a range of news organisations and Seven's first statement on Monday night is unacceptable. The company has been silent since and needs to take further public action to address the concerns shareholders have."
Mr Mayne said the board had a responsibility to act.
"Seven director Jeff Kennett was right to sheet home board accountability to Nine over the recent 60 Minutes child-snatching scandal," he said.
"But this is arguably a more serious situation involving Seven's CEO and corporate culture and directors."
Other non-executive directors, John Alexander, Michelle Deaker, Michael Malone and Sheila McGregor, were also contacted to respond to questions concerning allegations about a sex scandal involving Mr Worner and his behaviour but declined to comment.
Seven West Media denied that Mr Worner used his company credit card, or indirectly shareholders' funds, for improper purposes. It stated that it had strict credit card approval measures for staff.The company also denied that Mr Worner had been engaged in non-work activities on work time.
Ms Harrison has alleged she had sex with Mr Worner in work hours during an 18-month affair.
She alleges Mr Worner had sexual relations with four other Seven staff members.
Law firm Addisons sent letters to Fairfax Media on behalf of the women named in the complaint and denied they had ever been involved in sexual or inappropriate activities with Mr Worner. The letters also threatened legal action if the women's names were made public.
"Allegations made in her statement which name other employees are rejected totally, including any allegation that other current or former employees have been paid off," Seven wrote in its statement on Monday.
