Australia’s Downer appoints new finance chief amid regulatory woes

(Reuters) -Australian contractor Downer EDI Ltd said on Tuesday Malcolm Ashcroft will become its chief financial officer from July, after Michael Ferguson earlier this month decided to step down.

Ferguson’s exit was followed by the resignation of Chairman Mark Chellew as the company faces a public inquiry initiated by the New South Wales corruption watchdog.

The regulator is investigating allegations that certain Downer employees obtained personal benefits by favouring subcontractors for contracts awarded by the transport department.

Ashcroft has previously served as the finance head of local peer Healius and is currently the chief operating officer at G8 Education, Downer said.

Downer has also reported accounting irregularities in its utilities business.