Ausdrill backs former Leighton exec

Ausdrill has backed former Leighton Holdings chief executive Wal King to continue serving as its deputy chairman, despite allegations of bribery and corruption against Mr King and several other former Leighton executives.

An investigation by Fairfax Media has uncovered claims that several former Leighton Holdings executives, including Mr King, approved or were aware of the payment of kickbacks in the company's Asian operations.

Ausdrill wrote to shareholders earlier this month unanimously recommending they re-elect Mr King as a non-executive director at its forthcoming annual general meeting.

The company told the market today that its board had made this recommendation prior to the allegations against Mr King and other executives being raised in the media.

However, Ausdrill said its board was satisfied now that there was no reason to change its recommendation. 

"The board has been advised by Mr King that there is no investigation in relation to him, that the Australian Federal Police has never contacted him and that no charges have been laid against him," Ausdrill said.

"The board is therefore satisfied that in the circumstances there is no reason to change its recommendation in relation to his re-election."

Ausdrill noted that Mr King, as a non-executive director, does not play a role in the day-to-day operations of the company.

Mr King served as Leighton Holdings chief executive from 1987 to 2010.

The Leighton allegations have led to the departure of several former executives from their current roles, including UGL engineering chief executive Russell Waugh.

Ausdrill shares were 1.7 per cent higher at $1.44 at the close of trade.