A CALL has been made for Australian Wool Innovation directors Dr Meredith Sheil and Chick Olsson to resign from the board.
The resignation call was made following a signed letter by nine major buyers of Australian wool accusing the two of having a conflict of interest between their directorship duties and perceived outside commercial interests.
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Victorian Liberal senator Julian McGauran said the letter, signed by some of Australia's biggest wool customers, was the last straw in what has been an ongoing saga of alleged conflicts of interest by the two directors.
He said the conflict of interest related to a possible commercial stake by the two directors in the drug Tri-Solfen and its alleged promotion through their position on the AWI board.
"The conflict of interest issue has been building up for over 12 months and the two directors have failed to dispel the perception that they are using their position on the board as a commercial spring board,'' Senator McGuaran said.
"They only had to say 'no'."
Senator McGauran said that at a Senate Estimates hearing last year, AWI chairman Wal Merriman did not know whether there was a real or perceived conflict of interest by the two directors regarding their commercial interest in Tri-Solfen.
"There has been a veil of secrecy around the involvement of Dr Sheil and Mr Olsson’s alleged commercial interests in the drug Tri-Solfen ... it is time the veil was lifted," Senator McGauran said.
"There has been too much ducking and weaving as to the true standing of the two directors which has cost the board its credibility at home and abroad.
"It is better that the two directors place the reputation of the board and industry ahead of their own interests and resign."
