Telstra chief 'embarrassed' with $1 billion writedown
Teltra's chief executive Ziggy Switkowski concedes he is embarrassed by
having to write down the value of a key Asian investment by $1 billion that
has pushed Tesltra shares to a five-year low.
Tough competition and weak demand has forced Telstra to write down the
value of Hong-Kong based data and voice infrastructure company, Reach, from
$1 billion to zero.
Telstra owns half of Reach with Pacific and Century Cyberworks.
Mr Switkowski says Telstra will postpone expansion plans in Asia until
Reach starts performing.
"I am embarrassed by the need to make these writedowns and the focus and
the priorities will be that we will work on making these operations deliver
on our original expectations," Mr Switkowski said.
The announcement is expected to hit the telco's half year profits due out
next week.
Shares in Telstra closed almost 4 per cent lower to $4.20.
Indian jailed for smuggling Pakistani in suitcase
An Indian man has been jailed for smuggling a Pakistani into Hong Kong from
mainland China in a suitcase, officials said.
"An Indian visitor was jailed 16 months for smuggling a Pakistani national
into Hong Kong by a suitcase," an Immigration Department spokesman said in
a statement.
Indian national 22-year-old Pardeep Singh was stopped on December 26 at the
Lowu border crossing from Shenzhen when immigration officials became
suspicious.
His 54 by 80 centimetre suitcase was opened, revealing a Pakistani man
hiding inside.
Mr Singh claimed he had met an Indian friend at a duty-free shop who
entrusted him to take the case to Hong Kong, which he claimed he believed
only contained thousands of mobile phone batteries.
Pakistani Raja Kamran, 24, had been previously deported for life from Hong
Kong last August.
In January he was given 18 months' jail for breaching the deportation order.
The case follows reports earlier this month that illegal immigrants from
India and Pakistan were being smuggled into Hong Kong inside suitcases by a
syndicate operating in mainland China.
The immigrants were reportedly wheeled across the Lowu border crossing from
Shenzhen after paying between $US250 and $US300.
Crossings were usually made at peak times when there were large crowds and
customs officers were less likely to check luggage.
"Immigration Department is committed to combat any human smuggling activity
in Hong Kong and high vigilance is maintained at all Immigration control
points," the spokesman said.
