Curiously, the government has had little to say about the strife Rio Tinto and its former CEO, Tom “sovereign risk” Albanese find themselves in with the United States Securities and Exchange Commission over the small matter of a $3 billion write-down on its Mozambique coal mine debacle — and what the company told investors about it.
Imagine if a trade union and a former union boss were facing fraud charges relating to $3 million, let alone $3 billion. Michaelia Cash would have been out of the blocks in a flash, demanding Labor explain its links with the union (and berating female journalists for failing to chase the story). Especially if the union was in the middle of dealing with another scandal about bribery involving its most senior executives.
But for Rio Tinto, not a word.
The government’s logic on establishing the Australian Building and Construction Commission was that the existing regulatory mechanisms for dealing with the construction industry were inadequate to the task of maintaining the rule of law in the sector.
So what, then, are we to make of the fact that it isn’t the Australian corporate regulator that has gone after Rio Tinto, but the SEC? The SEC is involved because Rio went to US investors to raise capital without — the SEC alleges — being completely forthright about the Mozambique disaster. And not merely the SEC has gone after the company — yesterday the UK Financial Conduct Authority fined the company 24.7 million pounds for the same issue. It’s only because Rio said uncle at an early stage with the FCA that it avoid a 40 million pound fine.
So the UK regulator has had time to investigate the company, prosecute it and settle the matter. The SEC has had time to launch a prosecution. Where’s the Australian Securities and Investment Commission? Still looking into it, apparently. Since the exposure of its Keystone Cops-like performance on Commonwealth Financial Planning, ASIC has been working hard to dispel its reputation for being gun-shy when it comes to the top end of town. It doesn’t get much bigger in Australia than Rio Tinto. So where’s our regulator? Too busy preparing incoming briefs for new boss James Shipton?
Or do the existing regulatory mechanisms fail to address industry lawlessness and we need a special body to go after mining industry executives? We won’t hold our breath.
C’mon, you don’t go crook at the boss!
It is remarkable that we even bother pointing out double standards anymore. Where does it get us? Good effort Bernard for at least having a crack. I can’t see the theme getting picked up by the MSM – or what little remains of the MSM.
An apt comment Bernard. The contrast between ASIC and the overseas counterparts is stingingly accurate. Only by calling out these anomalies is there any chance of having our institutional systems, our so-called checks and balances, bail up some of the set sacred cows of the corporate capitalist ascendancy.
Clearly, what is good for the Goose, is not so good for the Gander.
Yeah, well done Bernard for having a crack. I think you will find that the already compromised and ineffective APRA, ASIC and the like were somewhat gutted of personnel by one Tony Abbott.
But they were already largely made to look ineffective by the big corporates. If you’re big enough, you don’t have to worry too much about getting caught.
“If you’re big enough, you don’t have to worry too much about getting caught.”
Or small enough. Phoenix companies cost the Oz economy billions annually but these devious operators, many of them serial offenders, know they will never be troubled by ASIC or the ATO.
Yes if it had been the unions or a union boss facing fraud charges of three million let alone three billion Michaelia Cash would be pissing her pants with gleeful excitement.