Bank is left with slight conflict

Reading the recent applause for Ettalong Beach Bendigo Bank, one would think that, despite a lashing in the Sydney Morning Herald recently on the bank's financial position, everything is hunky dory.

You might also think that the chairman of the board Mick Gage is right and that the Sydney Morning Herald is completely wrong.

Well, as a shareholder, I decided to do some digging just to investigate my investment and discovered their financials read like a nightmare and their corporate governance practices worse.

Checking the Bendigo Stock Exchange website, it clearly shows that the bank has been suspended from trading every year, for what I can only assume to be poor corporate governance.

This entails massive fines that the bank has had to wear and still it continued year after year right up until recently.

In the past six months, seven directors have left the board, including the new company secretary, who as I understand, was there to clean up the mess.

These resignations say volumes to me.

I read the bank's recent newsletter as well and saw who was left of the board.

What was most alarming is that there are directors on the Ettalong Beach Bendigo board who also sit on the board of the Woy Woy Rugby League Football Club and the Everglades Country Club whose social golf club and football clubs have been receiving thousands of dollars in sponsorship from the bank.

Just a slight conflict one would think.

If anyone thinks this bank is in "profit", maybe they would care to buy my shares.

They're most welcome to them because, judging from the financials and business practices, I cannot see a dividend in sight for years to come.

What a shame so many good directors have resigned along with transparency on the board.

Letter, 6 Jul 2011 Jack Galway, Woy Woy