7 Pages

breaches trustee law by the charity with the Director of

The third case of Fernandes v Netcom Consultants (UK) Ltd, which was discussed briefly in the introduction, concerned the disclosure of irregularities in respect of corporate expenses. The applicant was employed by the respondent company for over four years when he was dismissed as chief financial officer for 'shortcomings in his job'. Netcom had a policy by which senior managers had a corporate credit card and the bill was paid by the company monthly. Personal expenses could be placed on the card, but had to be repaid to the company after receipts were produced to verify business expenditure. It was Mr Fernandes' role to ensure expenditure was properly incurred on receiving the required receipts from employees. The managing director of the company, Mr Woodhouse, persistently failed between 1997 to 1999 to produce any receipts to support his expenses claims despite repeated requests from Mr Fernandes. In January 1997, Mr Fernandes faxed to Mr Palladino, his contact in the parent company, XSource Corp in America, his concerns over Mr Woodhouse's failure to submit receipts for expenditure. However, Mr Palladino telephoned him late that evening to tell him that the fax had been destroyed and to do likewise to his cop}', with the warning 'You must look after your butt'. In 1999, there was a 'steep increase' in Mr Woodhouse's expenses. In November, with an impending audit, Mr Fernandes sent a detailed letter reporting on Mr Woodhouse's failings to XSource and its parent company's management board in Luxembourg. Following this disclosure, Mr Fernandes was ordered to stay at home and pressed repeatedly to resign. He was subjected to a disciplinary hearing and dismissed for approving unsupported transactions and allowing 'what he determined fraudulent activities to continue'. Mr Woodhouse was allowed to continue working until the management team of XSource Corp insisted action be taken and he resigned on request.