Friday 27 August 2010

Gloria Jean and Mercy Ministries back in the spotlight


With much of the Australian mainstream media and blogosphere focussed on the recent federal election, this The Sydney Morning Herald article past under my radar (kudos to Cafe Whispers for being an exception) :

The parent company of Gloria Jeans Coffee, co-owned by the Hillsong Church elder Nabi Saleh, is in ''financial dire straits'' and should be put into liquidation and an investigation held into its affairs, the NSW Supreme Court has been told.
It is the latest shot fired in the multimillion-dollar lawsuit against the coffee giant's parent company, Jireh International, by a small US-based coffee supplier, Western Export Services.
On June 11, the court ruled that Jireh must pay the export company millions in commissions and interest after it found Jireh had breached a joint venture agreement. Yesterday the parties were back in court, fighting over the formula used to calculate the total owed to Western Export Services.

The last published judgment in the matter Western Export Services Inc v Jireh International Pty Limited [2010] NSWSC 622 (11 June 2010) awarding $8,387,656 in damages to Western Export Services.

Here in Australia we are all aware of the ACCC's investigations into Hillsong-connected Mercy Ministries:

The Australian Competition and Consumer Commission has obtained court enforceable undertakings, which includes payment, from seven former directors of Mercy Ministries Incorporated and/or Mercy Ministries Limited in relation to misrepresentations by those entities.
The undertakings include an apology and a voluntary payment of $1050 to those people affected by the conduct. These are made by former directors Mark Zschech, Peter Irvine, Mark Caldwell, Stephen Crouch, Young Pil (Phil) Sohn, Darlene Zschech and Clark Pearson.
Mercy Ministries is a not-for-profit Christian based charitable organisation which offered a residential counselling program to young women affected by issues such as eating disorders, depression, self harm, unplanned pregnancy, drug and alcohol abuse and the effects of sexual or physical abuse. The program was offered whilst the young women resided in a Mercy Ministries home.
The ACCC was concerned that in a period between January 2005 and June 2008, Mercy Ministries misrepresented in brochures and on its website that its services were provided for free, when the majority of residents were required to assign their Centrelink payments to Mercy Ministries for the duration of their stay.
The ACCC was also concerned that during this period, Mercy Ministries misrepresented that it offered professional support from psychologists, dieticians, general practitioners, social workers and counsellors, when the level of professional support was not available as represented. Mercy Ministries did not employ this range of professionals. It did facilitate access to external professionals upon request from residents.

2010

Undertakings remedy Mercy Ministries misleading conduct. The Australian Competition and Consumer Commission has obtained court enforceable undertakings, which includes payment, from...

obtained court enforceable Undertakings from seven former directors of Mercy Ministries Incorporated and/or Mercy Ministries Limited in relation to representations made by...

December 2009. Undertaking. The ACCC has obtained court enforceable Undertakings from seven former directors of Mercy Ministries Incorporated and/or Mercy Ministries...

2009

Darlene Joyce Zschech and Clark Pearson were directors or office holders of Mercy Ministries Limited ACN 094 325 765 ( N ML) and/or Mercy Ministries Incorporated ABN...

A report of the Australian Competition and Consumer Commission s activities 1 October to 31 December 2009

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