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MELBOURNE - Former Foster's Group head of Australian operations John Murphy will replace Visy boss Harry Debney, who stepped down after admitting his role in a price-fixing scandal.
Visy's owner, billionaire philanthropist Richard Pratt, announced Murphy's appointment to the position of chief executive of Visy's Australian manufacturing group.
Debney fell on his sword just one week after he and Pratt appeared at a Federal Court hearing to settle over allegations of price-fixing in Australia's A$2 billion ($2.42 billion) cardboard-packaging industry.
Murphy worked at Foster's for 26 years before his sudden resignation last year during a reshuffle.
Pratt has also created another role for Ted Kunkel, currently a family advisory board member, who will chair a board to oversee Visy's Australasian manufacturing operations. Kunkel was Foster's chief executive before stepping down in 2004.
"These past few weeks have been difficult for everyone at Visy," Pratt wrote in an email to his employees.
"But the changes announced will ensure we have the leadership to overcome the current challenges and deliver strong ongoing growth for the benefit of all stakeholders."
In his own email to employees last week, Debney said he had clearly breached the Trade Practices Act a number of times during the deal with packaging rival Amcor.
"The events of the past few weeks, and in particular the disproportionate focus on Richard Pratt as chairman, have also caused me to think further," Debney wrote.
"I want to make it clear that I am personally responsible for the Trade Practices breaches in which I was involved, and as CEO, for the actions of [former general manager] Rod Carroll."
The Federal Court was told the deal to fix prices and market share with Amcor had been initiated by Debney and endorsed by Pratt.
It was Debney who set up an "overarching understanding" with Amcor in 2000 after a price war between the packaging giants, which between them controlled 90 per cent of the market.
Pratt and Visy face a record A$36 million penalty for the four-year cardboard cartel after agreeing to settle with the Australian Competition and Consumer Commission.
Debney faces a A$1.5 million fine, while Carroll may have to pay a A$500,000 penalty for his role in the deal. Both Amcor and Visy are now fighting a A$700 million civil action by aggrieved customers.
AAP
