As Friday unfolded it became clearer that profits inside the business appear to have been inflated by design rather than a processing error.
More broadly,the situation calls into question the financial controls inside the company at a time when investors have little tolerance for financial snafus.
Meanwhile,Kane,who declared himself"gutted",told investors the president of Boral Windows,David Decker,has been"isolated"from"financial and operating issues as we continue our investigations".
The impact on profit will be up to $44 million and,at this stage,is being treated as a one-off. The impact on Boral’s reputation and that of its management could linger longer."In 46 years in business I have never seen anything like this,"Kane said.
Inevitably there will be questions raised about Kane’s future in the top job and whether the problems found in this division could be more widespread.
But for now at least Kane says he is staying put. Up until yesterday there had been an expectation he would remain in his position for another 18 months.
His potential internal successors are considered to be Boral's chief financial officer,Ros Ng and president of Boral Australia,Wayne Manners.