Australia "Do as I say, not as I do" - The ongoing RBA bribery scandal

Murray Hunter

 

Although Australia is listed in the top 10 least perceived corrupt countries in the world by Transparency International, an ongoing bribery case involving the companies Securency International and Note Printing Australia, which are jointly owned by the Reserve Bank of Australia (RBA) is causing embarrassment to the Australian Government.

The RBA is Australia's central bank and as such is responsible for money supply and the setting of interest rates, an integral part of any country's monetary policy. Consequently the banker to the government other banks must not just act with integrity, it must be trusted as an institution beyond reproach if the financial system and public are to maintain confidence in the institution.

Note Printers Australia developed a unique polymer banknote technology in the 1980s which gave the company a great leap forward in technology and security it could offer around the world. The marketing arm Securency International obtained 10s million dollars in orders from foreign governments for the product. According to sources inside the company at the time, there was much debate about how the company could increase its market share within Asia, where the dominant management group at the time commissioned a number of "shady" middle men to assist in securing business.

The story even has an air of James Bond about it where a high ranking female Australian official Elizabeth Masamune had an secret affair with a top Vietnamese colonel in the Vietnam State Intelligence Network Anh Ngoc Luong who is accused of receiving up to USD 20 million in suspected bribes from the subsidiary company of the Australian reserve bank when she was serving in Hanoi in the early 2000s. Colonel Luong was working with the RBA firm Securency trying to win a large banknote contract according to testimony given in court by Australian prosecutors. The prosecutor's allegations also claim that multi-million dollar payments were also made to officials in Malaysia, Indonesia, Nigeria, South Africa, India, Nepal, and Uruguay. Apparently Securency also hired a Malaysian arms dealer and a convicted South African criminal to assist in paying bribes.

The Reserve Bank Governor Glenn Stevens had consistently denied that the RBA knew much about the bribe allegations until a memo by the NPA company secretary Brian Hood to the then deputy Governor Ric Battelino detailing corrupt behavior inside Note Printing Australia surfaced. The greens MP Adam Brandt suggests that this shows that knowledge of this corruption was known at the highest levels of government.

This is all adding pressure for a board of inquiry into the bribery allegations which could not only implicate the Reserve Bank of Australia, but also the into the extent senior officials of Australia's Ministry of Trade (AUSTRADE) were also involved. Australia's Prime Minister Julia Gillard and the Treasurer Wayne Swan, with the support of the opposition in parliament have been fiercely resisting calls for any inquiry by the Australian Green party as it could not only jeopardize the standing of Australia's central bank, but show Australia's intelligence networks have been compromised by the affair.

The committal hearings for alleged bribery offences by eight former Securency International and Note Printers Australia officials are ongoing in the Melbourne County Court. To some degree this could be a move to create scapegoats as the Australian Federal Police until today have not investigated the role of government agencies in this affair, despite clear evidence that Australian officials were aware of, or involved in some of Securency and Note Printers Australia international dealings.

This is Australia's worst corporate corruption scandal and it directly involves the Government. This case is not just about a group of individuals who have been alleged to bribe foreign officials for business. This case is about the integrity of the most important financial body in Australia and the way the Australian Government conducts itself internationally.

Payments have been made to politicians of many political parties with the intention of getting favours in return. Some of these payments were allegedly made as donations to political parties, indicating that the Australian government has interfered in domestic politics within the region for corrupt intentions, which could be construed to be mocking the attempts of Asian governments like Indonesia to eradicate corporate and government corruption. This not only breaches Australian law but sets a very poor example to the corporate world and other governments within the region.

While it's up to the courts to decide the innocence or guilt of those already charged. It is necessary to widen the investigations. There has been an apparently deliberate attempt to cover up the truth in this case by the Australian Government. Until the Government comes clean with a Royal Commission, the Australian Government's dealings with Asia and the integrity of the public service will be under a cloud.

Ironically the Asian Development Bank has mentions in its Asian Century report that corruption this century will be one of the greatest challenges for the region, yet the recently released Australian White Paper on Asia does not even mention the word "corruption" once.

At the very least this affair has been grossly mishandled by the Government, and one can add the opposition (some of this happened when the opposition was in government), which is letting down the Australian people.

Who are both sides of politics in Australia trying to protect?

 

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Notes and References




 

05.11.2012

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PUBLICATIONS:


      Entrepreneurship and economic growth? South-East Asian governments are developing policy on the misconception that entrepreneurship creates economic growth. - Murray Hunter

      Australia "Do as I say, not as I do" - The ongoing RBA bribery scandal - Murray Hunter

      Australia in the "Asian Century" or is it Lost in Asia? - Murray Hunter

      Surprise, surprise: An Islam economy can be innovative - Murray Hunter

      Do Asian Management Paradigms Exist? A look at four theoretical frames - Murray Hunter

      What China wants in Asia: 1975 or 1908 ? – addendum - prof. dr. Anis Bajraktarević

      ASEAN Nations need indigenous innovation to transform their economies but are doing little about it. - Murray Hunter

      From Europe, to the US, Japan, and onto China: The evolution of the automobile - Murray Hunter

      Missed Opportunities for ASEAN if the ASEAN Economic Community (AEC) fails to start up in 2015 - Murray Hunter

      Lessons from the Invention of the airplane and the Beginning of the Aviation Era - Murray Hunter

      Elite educators idolize the “ high flying entrepreneurs” while deluded about the realities of entrepreneurship for the masses: - Murray Hunter

      The Arrival of Petroleum, Rockefeller, and the Lessons He taught Us - Murray Hunter - University Malaysia Perlis

      Ethics, Sustainability and the New Realities - Murray Hunter

      The Dominance of “Western” Management Theories in South-East Asian Business Schools: The occidental colonization of the mind. - Murray Hunter

      How feudalism hinders community transformation and economic evolution: Isn’t equal opportunity a basic human right? - Murray Hunter

      On Some of the Misconceptions about Entrepreneurship - Murray Hunter

      Knowledge, Understanding and the God Paradigm - Murray Hunter

      Do Confucian Principled Businesses Exist in Asia? - Murray Hunter

      Samsara and the Organization - Murray Hunter

      Integrating the philosophy of Tawhid – an Islamic approach to organization. - Murray Hunter

      What’s with all the hype – a look at aspirational marketing - Murray Hunter

      Does Intrapreneurship exist in Asia? - Murray Hunter

      One Man, Multiple Inventions: The lessons and legacies of Thomas Edison - Murray Hunter

     People tend to start businesses for the wrong reasons - Murray Hunter

     How emotions influence, how we see the world? - Murray Hunter

     How we create new ideas - Murray Hunter

     Where do entrepreneurial opportunities come from? - Murray Hunter

     The five types of thinking we use - Murray Hunter

     Evaluating Entrepreneurial Opportunities: What’s wrong with SWOT? - Murray Hunter

     How motivation really works - Murray Hunter

     The Evolution of Business Strategy - Murray Hunter

     Not all opportunities are the same: A look at the four types of entrepreneurial opportunity - Murray Hunter

     Do we have a creative intelligence? - Murray Hunter

     Imagination may be more important than knowledge: The eight types of imagination we use - Murray Hunter

     The environment as a multi-dimensional system: Taking off your rose coloured glasses - Murray Hunter

     Generational Attitudes and Behaviour - Murray Hunter

     Groupthink may still be a hazard to your organization - Murray Hunter

     Perpetual Self conflict: Self awareness as a key to our ethical drive, personal mastery, and perception of entrepreneurial opportunities - Murray Hunter

     The Continuum of Psychotic Organisational Typologies - Murray Hunter

     There is no such person as an entrepreneur, just a person who acts entrepreneurially - Murray Hunter

     Go Home, Occupy Movement!!-(The McFB– Was Ist Das?) - prof. dr. Anis Bajrektarevic

     Diplomatie préventive - Aucun siècle Asiatique sans l’institution pan-Asiatique - prof. dr. Anis Bajrektarevic

     Democide Mass-Murder and the New World Order - Paul Adams

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