Editorial:

Obscenity

No event illustrates more vividly the obscenity and moral 
degradation of capitalism than last week's bolt by the two 
directors of James Hardie that are responsible for the denial of 
funds to the victims of asbestos related cancers. They resigned 
from their company positions and walked away with $10 million 
between them while the fund for cancer victims is just about 
dry.

Let's remember their names and inscribe them in the hall of 
infamy — Peter Macdonald and Peter Shafron — former chief 
executive office and chief financial officer respectively. They 
have been responsible for a series of manoeuvres designed to deny 
cancer suffers compensation.

No doubt they knew exactly what they were doing and their 
resignations are apparently not going to bring an end to 
manoeuvres of the present company directors headed by Chairwoman, 
Meredith Hellicar. She must also have been well aware of what the 
former company chiefs were up to. Following their resignations Ms 
Hellicar is reported to have said that the company had no legal 
obligation to pay asbestos victims. No doubt she would argue 
strongly that the company had a legal obligation to pay the 
former company officers their golden handshakes.

These are not isolated events. There is a long string of such 
corrupt practices. Recall the corrupt behaviour of Brad Cooper 
who paid out and a Mr Howard who received envelopes of money as 
bribes in relation to the bankruptcy of HIH insurance. Part of 
the conspiracy between the two was aimed at extracting about $14 
million out of HIH three months before its collapse.

Then there was the infamous Rodney Adler who also jumped ship 
before the HIH shipwreck left HIH staff and thousands of 
insurance policy holders with worthless pieces of paper. In fact 
five of HIH's board members resigned in the months before the 
collapse suggesting that they knew well the real state of affairs 
and were collecting their money and running — "cut and run" as 
the Prime Minister would call it.

There were others involved such as the company auditor Arthur 
Anderson — also involved in the ENRON collapse in the United 
States. It was by no means a case of a few rotten apples in an 
otherwise healthy business barrel. It was greed and corruption 
incorporated. HIH had claimed assets of $940 million as of June 
30, 2000 yet a short time later it was in the hands of 
liquidators. One can only wonder who else (besides those who have 
been charged with corruption) actually helped themselves to this 
$940 million and left people homeless, retirees without their 
savings and staff without jobs.

Then there is the current case of Mr Musingku, a man who is 
wanted in Papua New Guinea and Bougainville for ripping off many 
citizens with infamous pyramid schemes which were used to lure 
PNG and Bougainville citizens into parting with their very small 
savings on the promise of "get rich quick" returns. Millions of 
dollars are owed by this corrupt individual who has suddenly 
returned to Bougainville in an Australian plane carrying weapons. 
There are many, many other examples of corruption in which people 
are ripped off and left stranded without jobs, without the 
savings they invested and in some cases without the homes they 
bought.

"Capital eschews no profit, or very small profit, just as Nature 
was formerly said to abhor a vacuum. With adequate profit, 
capital is very bold. A certain 10 percent will ensure its 
employment anywhere; 20 percent certain will produce eagerness; 
50 percent, positive audacity; 100 percent will make it ready to 
trample on all human laws; 300 percent, and there is not a crime 
at which it will scruple, nor a risk it will not run, even to the 
chance of its owner being hanged. If turbulence and strife will 
bring a profit, it will freely encourage both. Smuggling and the 
slave-trade have amply proved all that is here stated." Quoted by 
Marx as a footnote to Capital from T J Dunning in Trades' 
Union and Strikes (Marx Engels Collected Works Vol 35 
p748)

This evaluation of capital made more than 150 years ago remains 
true today. If anything capital has become even more rapacious as 
it reaches out again to control the whole world.