Bob Brown (Tasmania, Australian Greens) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer. I quote from the Age of 13 June that the Reserve Bank of Australia has asked the Australian Federal Police to examine the use by Securency, a company subsidiary of the RBA, of agents in Africa and Asia—

John Hogg (President) Share this | Link to this | Hansard source

Order on both sides! Senator Brown, you are entitled to be heard in silence. I could not hear your question properly because of the interjections from both sides. Start again, please.

Bob Brown (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Thank you, Mr President. The Age on Saturday said this:

The RBA has asked the Australian Federal Police to examine Securency’s use of agents in Africa and Asia after the Age revealed several had been implicated in official corruption inquiries and at least one had been convicted for reckless trading.

Securency has made multimillion-dollar commission payments to its agents, including some to offshore tax haven accounts.

I am aware that that police inquiry is underway, but I ask the minister, has the Reserve Bank undertaken an independent investigation, as suggested by Transparency International Australia, to investigate whether its own code of practice has been breached by Securency and Note Printing Australia, NPA, regarding the use of their agents?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

I thank Senator Brown for his question. I have read the reports in the Age and a subsequent article about allegations relating to a company and some alleged arrangements that were entered into with the printing of banknotes and the relationship with the RBA. The first point I would make is that the Reserve Bank of Australia is independent. I am not aware of the particulars of the contractual arrangements that were entered into with the subsidiary printing production company. I am aware that there is a police investigation underway and I do not want at this stage to make any further comment until that investigation is concluded and a report is provided.

Bob Brown (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Mr President, I asked a supplementary question. Has the government, the Treasurer or anybody else in the government sought information from the Reserve Bank of Australia about these extremely serious allegations? If so, when did that happen and with whom were those talks held? If not, why hasn’t the government asked the Reserve Bank of Australia for an explanation?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

As I have noted, Senator Brown, and you have referred to this, there is a police investigation. I understand the Reserve Bank did issue a statement about this matter on Friday. If there is any suggestion of inappropriate action by NPA, the matter will be referred to the Australian Federal Police. But, as I have said already, beyond that it is not appropriate to make any further comment.

Bob Brown (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Mr President, I have a further supplementary question. Is it true that the Deputy Governor of the Reserve Bank is also the chair of the board of Securency, which has now been accused of having agents putting multimillion dollar funds into offshore tax havens as a result of the pursuit of contractual arrangements, including with countries like Sudan, which have been proscribed by the United States because of their terrorist status? I also ask the minister, does it not trouble the government enough to ask the Reserve Bank about its subsidiary’s dealing with the regime of Saddam Hussein in the 1990s; and if it has information about those particular dealings, what is that particular information?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

Securency was established in 1996 and it is half-owned by the Reserve Bank. I do not have the board membership before me but I am happy to take that on notice and examine whether there is any common board membership between the RBA and Securency. I do understand that the board of Securency have referred all matters to the Australian Federal Police. As I have said on two occasions in response to your questions, it would be inappropriate for me to comment further until the police have carried out whatever investigations they believe are appropriate in this matter.