❓ A parliamentary question regarding the costs and outcomes of engaging KPMG and Ad Astra Corporate Advisory to advise the government on the insolvent Griffin Coal, and the government's response outlining the costs and purpose of the engagements.
AnsweredQoN 966Legislative Council
Asked
31 August 2023
Member
Portfolio
State and Industry Development, Jobs and Trade
QuestionView source ↗
GRIFFIN COAL —
KPMG AND AD ASTRA CORPORATE
ADVISORY
966. Hon Dr STEVE THOMAS to the minister representing the
Minister for State and Industry Development, Jobs and Trade:
I
refer to my question without notice 934 asked yesterday, 30 August 2023, on the
appointment of both KPMG and Ad Astra
Corporate Advisory to advise the government on the problems at the insolvent
Griffin Coal that have resulted in a blowout in liquidator grants from this
government now totalling $27.3 million to the receivers and managers.
(1) What is the current and expected total cost to the
government for receiving this advice from each company?
(2) Has either
company provided an estimate of the total public funding that will be required
to bring this disaster to a solution or end point and; if so, what was that
estimate?
(3) Has either
company provided a forward projection of income and cost of production for
Griffin Coal; and, if so, what were those projections?
(4) Has either company offered a permanent solution to
the Griffin Coal problem; and, if so, what was proposed?
(5) If no to (2),
(3) or (4), why not and what on earth is the government paying them for?
KPMG AND AD ASTRA CORPORATE
ADVISORY
966. Hon Dr STEVE THOMAS to the minister representing the
Minister for State and Industry Development, Jobs and Trade:
I
refer to my question without notice 934 asked yesterday, 30 August 2023, on the
appointment of both KPMG and Ad Astra
Corporate Advisory to advise the government on the problems at the insolvent
Griffin Coal that have resulted in a blowout in liquidator grants from this
government now totalling $27.3 million to the receivers and managers.
(1) What is the current and expected total cost to the
government for receiving this advice from each company?
(2) Has either
company provided an estimate of the total public funding that will be required
to bring this disaster to a solution or end point and; if so, what was that
estimate?
(3) Has either
company provided a forward projection of income and cost of production for
Griffin Coal; and, if so, what were those projections?
(4) Has either company offered a permanent solution to
the Griffin Coal problem; and, if so, what was proposed?
(5) If no to (2),
(3) or (4), why not and what on earth is the government paying them for?
AnswerView source ↗
I thank the Leader of the Opposition
for some notice of the question. It was quite a long question. However, I do
have an answer for the member.
(1)–(5) The value of the KPMG contract is $240 000. To
date, the state government has paid $286 869, including GST , for Ad
Astra Corporate Advisory's services. KPMG has been engaged to provide
advice to government on funding matters and
mining operations in order to ensure a sound basis for all government
disbursements and assure all parties that the mine is running
efficiently. Ad Astra Corporate Advisory has been engaged to assist the government with the discussions with
commercial parties, with a view to facilitating a commercial agreement
with Griffin Coal's customers based on paying a price for coal that
supports the stable operation of the mine. Those discussions remain ongoing.
The government will continue to act as necessary to ensure energy system
security and certainty for the Collie workforce and community.
for some notice of the question. It was quite a long question. However, I do
have an answer for the member.
(1)–(5) The value of the KPMG contract is $240 000. To
date, the state government has paid $286 869, including GST , for Ad
Astra Corporate Advisory's services. KPMG has been engaged to provide
advice to government on funding matters and
mining operations in order to ensure a sound basis for all government
disbursements and assure all parties that the mine is running
efficiently. Ad Astra Corporate Advisory has been engaged to assist the government with the discussions with
commercial parties, with a view to facilitating a commercial agreement
with Griffin Coal's customers based on paying a price for coal that
supports the stable operation of the mine. Those discussions remain ongoing.
The government will continue to act as necessary to ensure energy system
security and certainty for the Collie workforce and community.
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