Executives entangled in bribery scandal
(24 November 2009 – Australia) The Securency International Board, a subsidiary of the Reserve Bank of Australia, has stood down two executives amid allegations of corruption.
The company, which is half owned by Australia’s central bank, makes plastic bank notes that have a patented polymer material and are used in 27 other countries including Malaysia, Vietnam and Brazil.
The concern is surrounding what the Securency’s agents did to entice foreign governments to switch from the previously used paper notes to the plastic ones supplied by the group.
It is alleged Securency paid foreign businessmen, often government officials, millions of dollars in commissions in a drive to win banknote printing deals.
A federal police investigation has been launched into the actions of the managing director and company secretary of the group.
As part of the investigation, the Australian Federal Police raided the offices and homes of the Melbourne-based executives, who are accused of breaching federal bribery laws.
Police seized computers and files in an effort to build a case against the pair.
Robert Rankin, Securency chairman and Reserve Bank assistant governor, said that an internal investigation into similar allegations were conducted in 2007 and came to nothing and the Reserve Bank has said it endorses the actions taken by the Securency Board.
None of this information was communicated to Securency's Board, nor was it made available to the Reserve Bank of Australia's auditors, Mr Rankin added.
The Board's view is that such non-disclosure by company management is unacceptable, Mr Rankin highlighted.
If it can be proven that Securency executives knew or should have known they were dealing with businessmen working on behalf of foreign governments, they may face criminal charges that carry a 10-year jail sentence.
The concern is surrounding what the Securency’s agents did to entice foreign governments to switch from the previously used paper notes to the plastic ones supplied by the group.
It is alleged Securency paid foreign businessmen, often government officials, millions of dollars in commissions in a drive to win banknote printing deals.
A federal police investigation has been launched into the actions of the managing director and company secretary of the group.
As part of the investigation, the Australian Federal Police raided the offices and homes of the Melbourne-based executives, who are accused of breaching federal bribery laws.
Police seized computers and files in an effort to build a case against the pair.
Robert Rankin, Securency chairman and Reserve Bank assistant governor, said that an internal investigation into similar allegations were conducted in 2007 and came to nothing and the Reserve Bank has said it endorses the actions taken by the Securency Board.
None of this information was communicated to Securency's Board, nor was it made available to the Reserve Bank of Australia's auditors, Mr Rankin added.
The Board's view is that such non-disclosure by company management is unacceptable, Mr Rankin highlighted.
If it can be proven that Securency executives knew or should have known they were dealing with businessmen working on behalf of foreign governments, they may face criminal charges that carry a 10-year jail sentence.
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