July 18, 2005 From: AAP
FORMER Pan Pharmaceutical boss Jim Selim tried to get rid of evidence that "a rogue analyst" had manipulated testing to allow a dangerous travel sickness drug to go on the market, a court has been told
RMAA Response…….
Giving evidence in the case, Pan Pharmaceuticals' former IT manager Karl Brooks said Mr Selim asked him to get rid of the data on January 31, 2003.
This is not only a criminal act but an example of poor corporate governance and abuse of power in pressuring staff to destroy records.
"Effective governance is achieved through an intricate mix of people, processes and structures - set within the organisation's unique context. For this reason, the pathway to improving governance may be equally intricate and complex" Alan Cameron, Chairman, Cameron Ralph Pty Ltd.
One of the key objectives in AS8000 Good Governance Standard is 1.3 (b) "provide the mechanisms for an entity to establish and maintain an ethical culture through a committed, self-regulatory approach"
The object of undertaking good corporate governance principles is to:
(i) Enhance organisational performance.
(ii) Understand and manage risks to minimize the negative aspects and maximize the opportunities.
(iii) Increase investor confidence in the integrity and efficiency of capital markets and also enhance the competitiveness of the economy.
(iv) Strengthen shareholder and/or community confidence in an entity, particularly in areas that are not formally regulated.
(v) Enhance the public reputation of an entity through enhanced transparency and accountability.
(vi) Allow entities to demonstrate how they are discharging their legal, shareholder and ethical obligations.
(vii) Provide a mechanism for benchmarking accountability.
(viii) Assist in the prevention and detection of fraudulent, dishonest and/or unethical behaviour
Best practice recordkeeping will assist the organisation to improve its overall performance in areas such as decision making, product development, providing evidence of business activities, transparency and accountability. Certainly the last 2 areas are critical for all areas of governance regardless of whether or not your organisation is public or private. The principles will also assist in the arenas of risk management and audit control. But more importantly they will justify to our customers the inherent honesty and trust they can put in your entity as it strives to become a good corporate citizen. Obviously Pan Pharmaceuticals have let not only themselves down but also their clients, customers and ultimately resulted in their foreclosure and associated businesses.
Every organisation should be aware at the corporate or program level of the accountability requirements which bear upon it and how they affect recordkeeping and should take steps to ensure they will comply with those requirements.
Kemal Hasandedic
National Vice President
Records Management Association of Australasia
