Malaysiakini – Kuantan MP complains to Australia’s ASIC over Lynas

Sep 28, 11 3:20pm
Kuantan MP Fuziah Salleh has complained to the Australian authorities with allegations that the Sydney-based Lynas Corporation Ltd had committed “corporate fraud” by misrepresenting its actions to the investing public.

She said this in a letter dated Sept 27 addressed to the New South Wales branch of the Australian Securities and Investments Commission (ASIC).

NONEFuziah said Lynas in its second quarter report for the year ending June 30, 2011, outlined its strategies towards satisfying the 11 recommendations by a panel of International Atomic Energy Agency (IAEA) members that the body said must be satisfied before an operational license is issued the company by the Malaysian government.

Lynas has built a Lynas Advanced Materials Plant (Lamp) in Gebeng, Pahang, to process rare earth.

Three key recommendations, in particular, were to be satisfied by Lynas pertaining to the submission of documents on a permanent waste disposal plan, a plant decommissioning plan, and the intensification of communication with affected parties to “demonstrate how it will ensure the radiological safety of the public and the environment”

According to the PKR vice-president, however, none of the documents claimed by Lynas to have been submitted as part of its fulfilment of those recommendations have been disclosed to the public, nor was the public consulted in the formulation of these plans.

NONE“Yet, Lynas claimed to have satisfied IAEA’s ‘Recommendation 10’ in intensifying communication with affected parties,” said Fuziah in her letter.

“We regard this contradiction as an act of corporate fraud to mislead the investing public.

“By lying about its engagement with the public, Lynas understates the risk of revolt by the local residents when the Lamp is ready for production at the end of this year,” said Fuziah.

“The investing public has the right to access correct information to facilitate their decision making.

“Therefore, we urge the Australian Securities and Investments Commission to compel Lynas to issue a correction to its quarterly report, or to disclose all submitted documents to the public,” she added.

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