Speaking at the release of the inquiry report in Auckland today, Jack Hodder QC, who led the inquiry team, said the inquiry found that a number of factors, including a lack of senior oversight of crucial decisions, problems with tracing potentially affected product and belated escalation of the issue, contributed to the event in August this year.
“There were shortcomings in a number of areas, which, compounded by a number of events and co-incidences, converged to create this significant issue,” he said.
Despite this their findings and recommendations do not indicate any fundamental problems within Fonterra, rather that there is a range of improvements Fonterra can make to become an even better company.
The chairman of the special oversight committee for the inquiry, Fonterra director Sir Ralph Norris, said some areas of weakness have been highlighted, and this has created the opportunity for Fonterra to further strengthen it processes, culture and governance.
“Acting on the recommendations made will lead to Fonterra becoming even more responsive to the global expectations of excellence in food safety and quality, and engaging more comprehensively with stakeholders,” he said.
The chairman of Fonterra, John Wilson, said that the board of Fonterra was fully committed to implementing the recommendations made.
“What directors found encouraging is that this independent report to the directors has a significant degree of overlap with management’s operational review, which was made public last month.
Many of those recommended changes are already underway.
The board had also committed to the reconvening of the independent inquiry committee in 9 months, and again in 18 months, to assist the board in reviewing the progress that has been made against the recommendations.
The inquiry team was led by a legal team from Chapman Tripp, co-ordinated by senior partner Jack Hodder QC and independent experts Gabrielle Trainor, a Sydney-based specialist in crisis management and communication, and international dairy consultant Jacob Heida of the Netherlands.
