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No good reason why Reserve failed to involve police: Bandt

Media Release
Adam Bandt 8 Oct 2012

After a full day's inquiry, the Reserve Bank has still failed to satisfactorily explain why the Federal Police were never called in to investigate corruption concerns, Greens Deputy Leader and banking spokesperson Adam Bandt MP said today.

"I commend the willingness of the Governor and the bank to give evidence and share documentation with the committee, but we still don't have a satisfactory explanation as to why the police weren't called until the scandal hit the newspapers," Mr Bandt said.

"After reviewing internal audits and the Freehills report today, it is clear the Reserve Bank could have and should have involved the police in 2007. Even Mr Stevens acknowledged today that faced with similar circumstances in the future the police would be notified."

"Reports from internal auditors and corporate lawyers, who don't have the powers of police, failed to uncover some serious alleged corruption. The RBA relied on these reports to take the criminal allegations no further, but the right response would have been to call the police."

"There was a significant failure of governance and the Treasurer should be ensuring it doesn't happen again."

 

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