Corporate governance adviser RiskMetrics hosted its annual conference in Melbourne yesterday and generated plenty of press from a range of interesting speakers.
Unfortunately, Federal Superannuation and Corporate Governance minister Nick Sherry wasn’t one of them as he produced a pretty dull summary over lunch of the government’s rather modest corporate governance reform program.
Whilst Kevin Rudd and his ministers are happy to blast the Howard government on issues such as industrial relations, spending binges, inflation and foreign policy, there is a mysterious reluctance to go anywhere near a firm clamp down on corporate malfeasance.
Sure, we might get some more disclosure of short-selling but Sherry yesterday suggested we’re heading for even less liability for Australian directors.
Maybe it’s the influence of Allco Finance Group director Sir Rod Eddington, who chairs Rudd’s Business Advisory Council. One prominent public company director told me recently that “Sir Rod has done a great job keeping Rudd under control.”
Whatever the reason, Sherry’s limp performance yesterday means it is time to take off the gloves.
ASIC’s record on insider trading is widely regarded as a joke, yet Labor has been nowhere to be seen on this score. The same goes with director dealings where the ASX “guidelines” are being widely ignored.
Indeed, Sherry yesterday declared that ASIC and ASX had done “a solid job” during the recent market turbulence, when the facts would suggest otherwise.
There can be no starker key performance indicator for ASIC than its incarceration rate. The full list of ASIC’s 317 jail victims is here and the numbers break down as follows:
1991: 6
1992: 8
1993: 13
1994: 10
1995: 24
1996: 16
1997: 22
1998: 22
1999: 21
2000: 32
2001: 18
2002: 22
2003: 15
2004: 28
2005: 18
2006: 20
2007: 17
2008: 4
Last year was ASIC’s second lowest jail harvest in a decade. The long term batting average to is to jail someone every 17 days, yet it has now been 31 days since the last sentencing of a no name corporate crook, Sydney spiv Tunde Doja.
Australia has just suffered its greatest loss of confidence in financial markets in 15 years due to a series of collapses, poor disclosure, conflicts of interest and dodgy governance yet the government and regulators appear almost comatose.
Despite no direct sub-prime exposures, we’re punching well above our global weight for corporate scandals and the Minister gives ASIC an elephant stamp for “solid” performance at the end of April as ASIC tracks towards only jailing 12 people in an entire year and has charged precisely no-one yet over the recent scandals.
Can someone please lob a rocket under Nick Sherry or put a goer into the portfolio such as Bill Shorten or Greg Combet, both of whom have sat on multi-billion dollar superannuation boards and understand the importance of protecting Australia’s $1.2 trillion super pile?
Check out this video interview with RiskMetrics boss Dean Paatsch after yesterday’s conference.
Great rant TKFB. Not sure I quite got it all but great .TKFB reminds of a certain gifted cartoonist, not sure if he would know a catamite (?) from catnip though. But what I mostly wanted to say was: Dick Pratt is going gang busters in the PR stakes today over underwriting sculptures of the cavalry charge of Beersheba (apology for spelling). Just as Peter Timmins FoI expert writes quietly in the SMH about 5 days back about FoI systemic failure to flush out a report relevant to Costello et al failing to really criminalise cartel behaviour … by a certain Dick Pratt for instance, proven to satisfaction of a legal forum. All very awkward when billionaires get caught stealing from the public with cartel distortions of the market. Timmins is surely right, show us the report Mr ALP, let the cards fall where they will!
P.S. Was I the only person who noticed an article in the SMH – front page a couple of Mondays ago – about Visy OVERSTATING by several hundred(?) thousand tonnes ( I can’t recall the exact figure but it was very significant) the amount that they have recycled? The article said that Visy claimed it was a bookkeeping error that has been rectified. I wonder what the bounty/rebate per tonne Visy received for the overstated, sorry, mistaken declaration. Not a peep from anyone. Would Visy care to respond? I would love to be corrected, if I am wrong. As for Dicky, grudging respect, but not approval, is due, he at least stands up and takes his medicine in public and makes some form of restitution for his “errors’ unlike most of his other fellow members of the “born to rule club”
Shock, Horror, The Slurp from Brissy has no time for his “working families” but will supplicate himself to those who have and will continue to rip off those same people. OK The Slurp is a sycophantic catamite to the glitterati but even he has realised that his new “famous mates” wouldn’t give him a penny for his “root and branch hype” and his performance in the coming months will ensure that those with some money are too smart to invest in his “red shoe wearing, heel clicking, visions of Dorothy for the Land of Oz”. However he does know that the boys, those with all the money they ripped off from The Slurp’s “working families” will be more than willing to buy salvation for their corporate malfeasance, keep most of their ill-gotten gains, give him a token amount to buy him off, pretemd to lend him their support and that may allow The Slurp to pitch the for a chance at a bat. Sad, so sad, but not unexpected.