This has become big news overnight, since the allegations...

This has become big news overnight, since the allegations surfaced back in May, our very own Reserve Bank has close links.

Securency saga likened to AWB kickback scandal
By Simon Lauder
ABC NEWS

An academic says allegations that a subsidiary of the Reserve Bank (RBA) bribed overseas officials shares similarities with the AWB kickbacks scandal.

A global investigation into the actions of Securency has hit full throttle, with the Australian Federal Police (AFP) raiding six homes around Melbourne overnight.

Overseas, the UK's Serious Fraud Office (SFO) raided eight homes and one business, arresting two men. There were also two raids in Spain, targeting three British nationals.

It is illegal for an Australian company to bribe overseas officials and the penalties can be 10 years in jail or fines of $66,000 for each breach.

That is exactly the crime which is alleged to have been perpetrated by Securency International - the Melbourne-based company set up by the Reserve Bank to sell its polymer banknote technology to the world.

A whistleblower told the AFP about claims Securency was offering millions of dollars in bribes to foreign officials in Africa, South America and Asia.

The AFP, however, did not investigate until after the allegations were published in The Age newspaper.

Dr David Chaikin from the faculty of economics and business at the University of Sydney says the allegations have parallels with the AWB kickbacks scandal.

"There are similarities in terms of the role of the Government," he said.

"Securency is half-owned by the Reserve Bank, and therefore if these allegations of corruption are proved, it would mean the Australian Government has benefited from corrupting foreign public officials."

A call by Greens Senator Bob Brown for a Senate inquiry was defeated in Parliament, but Dr Chaikin says there are questions that cannot be answered by a police investigation.

"It appears the Government has not been forthright in carrying out a proper investigation, albeit that the AFP are now moving on this area, and that the role of the Government in facilitating the operations of Securency has not been the subject of any inquiry," he said.

"Securency was used to export and various Australian Government agencies facilitated that process, indeed some of the agents used by Securency apparently were recommended by Australian Government agencies.

"The question arises: what sort of due diligence was taken in recommending agents which are now the subject of investigation?"


Credibility at stake

Dr Chaikin says there should be a government inquiry to ask why the Reserve Bank is in the business of selling money and whether anyone in the Government played a role in Securency's business activities.

He says the Reserve Bank's credibility is also at stake.

"Half of the directors of the company are nominees of the Reserve Bank. In fact, Reserve Bank officials are on the board of the company," he said.

"And so the question then arises as to what sort of supervision in terms of just judging their responsibilities as directors were carried out in relation to Securency, and I don't think that question has been adequately dealt with by anybody."

A spokeswoman for the Reserve Bank told The World Today there would be no comment while the investigation was underway.

In a statement released in May, the Reserve Bank said it takes the allegations about Securency seriously and it condemns corrupt behaviour of any kind.

A spokesman for Securency says he will not comment on the raids and has no more information about them.


Here is a link to the story on Four Corners
"Dirty Money"

http://www.abc.net.au/4corners/special_eds/20100524/money/