Another key executive is facing jail time over the collapse of HIH. Former assistant company secretary Robert Kelly has indicated he will plead guilty to a fraud charge and will be sentenced on August 4.

Mr Kelly has admitted to misleading the Westpac Banking Corporation over the true nature of HIH’s financial position. His lawyer told Sydney’s Downing Centre Local Court Mr Kelly had wanted to avoid the bank calling in money it was owed.

He told the bank’s executives he could not hand over consolidated accounts for FAI (which HIH took over in 1999) because of a change in the company’s structure. Mr Kelly said restructuring the accounts would be too costly.

The 1998/99 accounts were required as part of a $150 million medium term note from the bank. They were, in fact, available for the bank’s inspection.

Mr Kelly has been released on unconditional bail and is due to face the NSW Supreme Court for next month’s sentencing.