Rod Oram looks closely in his weekly column at Fonterra's losses in China. He is unconvinced by Fonterra's confidence it can turn around Beingmate and thinks the Cooperative needs a change of chairman and culture.
Rod Oram delves behind the scenes of Fonterra's Beingmate debacle in this week's column. He finds the board will have to make a momentous decision that has parallels with Fletcher Building's eventual removal of its CEO and retirement of its Chairman.
Rod Oram has followed a trail of bad management decisions and poor governance to discover why Fonterra is staring down the barrel of a massive writedown on its investment in Beingmate. He raises questions about the role of Fonterra's auditor, PwC, and a stifled culture of debate on its board.
Beingmate, Fonterra's troubled investment in China, is blaming the co-op for its losses, according to a formal letter Beingmate has reportedly sent to Chinese financial regulators in response to their enquiries.