Graeme Samuel steps down from ACCC case over potential DFO conflict, rescue talks continue

Australian Competition and Consumer Commission chair Graeme Samuel has announced he will excuse himself from the watchdog’s deliberations over a potential merger between NAB and financial services company AXA, citing a potential conflict of interest over his investment in the troubled Direct Factory Outlet.

NAB is one of four lenders to the Direct Factory Outlet shopping centre in Melbourne’s South Wharf precinct. The centre is mired in $450 million debts, and the owners of the DFO, Melbourne-based developer Austexx, are locked in crisis talks to save the centre and the company.

Samuel is an investor in Austexx. His interests are held through a blind trust, but Samuel’s decision to step aside follows a cutting article this morning from The Australia‘s business columnist John Durie.

“Mr Samuel advised that he considered this course of action necessary to remove any perception of a conflict of interest arising from current issues concerning his family’s investment in the DFO shopping centre chain,” the ACCC said in a statement released this morning.

“Both NAB and AXA have been consulted and expressed no concern at Mr Samuel’s continuing involvement.”

“However the Commission accepted Mr Samuel’s position that he would cease to be involved in any further Commission deliberations on the NAB/AXA merger proposal.”

The future of Austexx and the South Wharf DFO remains unclear.

Talks between the company’s directors, its banking syndicate and consultants from KordaMentha are continuing. While there had been speculation that the business could be placed in receivership today, sources say there has been no firm decision.

Austexx’s board includes Melbourne entrepreneurs David Goldberger and David Wieland, who are listed on BRW’s Rich 200 with a fortune of $625 million.

Lawyers representing both men from top Melbourne law firm Arnold Block Leibler have been involved in the crisis talks.

Samuel said yesterday that he was upset by the problems that have hit Austexx.

“This is most distressing indeed because it affects the interests of my children and grandchildren as beneficiaries of my estate,” Samuel told The Australian.

Samuel says he has only received “headline information” about the operation of Austexx since becoming ACCC chair.

Samuel recently removed Austexx CEO Geoff Porz as one of the trustees of the blind trust.

“I have to leave this to others (the trustees) to sort out. But it’s true that I have changed a trustee to remove any potential conflicts and ensure they have one, and only one, mandate – to look after the interests of my children and my grandchildren,” he told the newspaper.