Amber Harrison has escalated her battle with Seven West Media by lodging formal complaints with the corporate regulator and sharemarket operator over the free-to-air broadcaster's summary of a report into her affair with chief executive Tim Worner.
The Australian Securities and Investments Commissions and the Australia Securities Exchange confirmed the complaints from Ms Harrison were received on Friday evening.
The complaints, obtained by The Australian Financial Review, allege Seven's release to the market on Friday morning, a summary of an independent report from law firm Allens that concluded allegations of misconduct by Mr Worner, during and after the affair with Ms Harrison, could not be substantiated, may have breached corporate regulation.
"Seven West Media released a factually incorrect statement to market today and have been trading on this incorrect information," Ms Harrison's complaint said.
While the ASX will consider the matter, Seven has met its responsibility to disclose its activity, but the issue of whether or not the disclosure is factual will more than likely rest with ASIC.
"ASIC will process the complaint in the normal way," ASIC corporate affairs executive Matthew Abbott said. "It will be assessed over the next few weeks to determine if there has been any breach and then will need to satisfy thresholds of public interest, regulatory benefit and use of resources."
Whitewash accusation
Ms Harrison's concerns stem from the short time between when Allens interviewed her and the report being tabled. She said she was interviewed by Allens on Friday, January 27, before her statement was delivered to the firm on Tuesday, January 31. The board was given the report on Thursday night and Seven sent a brief to shareholders on Friday morning.
Ms Harrison alleges Seven ignored evidence she provided proving misconduct.
The Allens report will not be released to the public or shareholders, as Seven claims legal privilege.
Former Victoria premier and Seven non-executive director Jeff Kennett is standing by the free-to-air broadcaster, stating he is satisfied with the independent report and board's action dealing with the fallout of the sex scandal.
Mr Kennett, who will continue in his role on the Seven board, said the Allens independent report, the board's response and its work over the investigation period was of high standards.
Seven's board of directors cleared Mr Worner of any wrongdoing, stating allegations of misconduct against him had not been substantiated.
"I am very satisfied that the release we made to the ASX [on Friday] conforms with my own personal requirements in terms of governance practice," Mr Kennett said.
Good governance
He said the allegations against Mr Worner had either been disproved by the report or could not be proven.
"Whether it's been government, the football club [Hawthorn], beyondblue, I always talk about the importance of good governance. A board's first responsibly is good governance."
Mr Kennett said good governance was a personal key performance indicator on which he would not compromise.
The Seven board had been under mounting pressure to take public action to deal with a host of allegations, including alleged drug use, alleged misuse of corporate credit cards, about an affair between Mr Worner and a former Seven executive assistant Ms Harrison.
It is understood Mr Kennett, with Michael Malone and Sheila McGregor, who all joined the board in June 2015 after Mr Worner confessed the affair to the board before being elevated to chief executive in July 2013, were not aware of the issue until the story broke in the media in December.
Ms McGregor resigned from the board on Thursday evening, less than 24 hours before the publication of a summary of the Allens report on Friday. A reason for her resignation was not given and Ms McGregor, understood to be overseas, did not respond to calls.
Allegations not substantiated
Seven said the report looked into allegations of a bonus payment to Ms Harrison, the circumstances of the investigation into her corporate credit card expenses, Mr Worner's corporate card expenses, allegations of drug use, Mr Worner and Ms Harrison's relationship, and allegations of relationships between Mr Worner and other staff members.
Seven also alleged Ms Harrison misused her own corporate credit card, which was discovered by Deloitte in 2014. Ms Harrison accepts some of the expenses but disputes the majority.
The board concluded allegations of misconduct by Mr Worner had not been substantiated.
"The Board has concluded following the receipt of the independent report there are no grounds to take any further disciplinary action against Mr Worner beyond the action which was taken in 2014 when the Company became aware of the inappropriate relationship," Seven said in a statement to the Australian Securities Exchange.
"The Board has addressed all the issues that have been raised and is confident that Mr Worner will continue to run the company in the interests of all shareholders."
