Statement of Contingent Liabilities as at 30 June 2002
Quantifiable contingent liabilities of the Ministry are as follows:
| | 2002
Actual | 2001
Actual |
|---|
| | $000 | $000 |
| Legal proceedings | 250 | 375 |
| Disputed rates assessment | - | 156 |
| Personal grievances | 95 | 257 |
| Total Quantifiable Contingent Liabilities | 345 | 788 |
Legal Proceedings
From time to time the Ministry, because of its various responsibilities, is required to make legal interpretations that result in possible legal proceedings. Currently two proceedings involve potential liability for the Ministry. One claim is against the Official Assignee as administrator of a bankrupt estate and the other is a judicial review arising a statutory management initiated under the Corporations (Investigation and Management) Act 1989.
The estimated maximum financial effect is $250,000.
At this stage the actions taken against the Ministry are believed to have a remote chance of success and there is no indication of if, or when, any payments might be made.
The Ministry believes that there is no likelihood of reimbursement in either proceeding.
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