The Reserve Bank of Australia under AFP investigation.

[Monkey Magic]

Australia Highlights Statement Concerning Securency International Pty Ltd
Source: Government of Australia Posted on: 22nd November 2009

Statement concerning Securency International Pty Ltd.

The Securency Board has today made a statement relating to the suspension of agent activity, and the standing aside of its Managing Director and Company Secretary while investigations continue. The Securency Board has kept the Reserve Bank informed of these developments and the Bank endorses these actions.

Securency International Pty Ltd is a joint venture between the Reserve Bank of Australia and Innovia Films, a UK based film manufacturer. It is headquartered in Craigieburn, Victoria. Securency manufactures Guardian® which is the polymer substrate used in Australian banknotes as well as banknotes issued in 27 other countries around the world.

Statement by the Board of Securency International Pty Ltd

On 23 May 2009, allegations were made in The Age newspaper that payments made to agents by Securency International Pty Ltd may have been used by the agents to pay ‘kickbacks’ to foreign government officials.

Securency has strict policies and procedures prohibiting such payments. Accordingly, the Board of Securency took the allegations very seriously and referred them to the Australian Federal Police (AFP). The AFP commenced an investigation shortly thereafter, which is ongoing. As part of that investigation, the AFP has executed search warrants at the company’s premises.

Securency also commissioned KPMG to conduct an independent evaluation of the policies and procedures in place governing use of agents and the company’s compliance with these directives. This included a detailed forensic examination of communications and payments by the company going back several years. The letter of engagement is attached. While the investigations of the AFP and KPMG are independent, KPMG has provided all information obtained to the AFP.

The KPMG investigation is not yet complete. At this point, the investigation has found that concerns of a similar nature had been expressed in 2007 by a member of staff to Securency management. An internal investigation by company management at the time concluded that no actions were required. None of this information was communicated to Securency’s Board. Nor was it made available to the Reserve Bank of Australia’s auditors who conducted an audit of compliance with company policy on agents shortly thereafter, and found that the company had a good and robust process governing payments to agents. The Board’s view is that such non-disclosure by company management is unacceptable.

The Board of Securency has met to consider what immediate steps are required. Three actions have been agreed:

First, it has asked the Managing Director and the Company Secretary to stand aside from their positions while investigations continue.

Second, the Board has asked KPMG to undertake a case-by-case assessment of every agent arrangement.

Third, while that assessment is being undertaken, immediate steps are being taken to suspend marketing activities involving agents.

Securency remains committed to taking any steps required as a result of either the AFP or KPMG inquiries.

source

there was a report on this earlier on abc.com.au, but i can't find it now. very difficult to get news on this one.

[boxy]

So, is this a counterfeiting scandal?

[JW.Frogen]

I see no problem with bribery, afterall, everyone says our future is with China now.

It is the Asian way.

[Monkey Magic]

So, is this a counterfeiting scandal?

um, no. did you read the article?

the rba owns 50% of securency which has been bribing the govts of nations into changing their currency to polymer notes. in the abc article that i had read, vietnam govt officials also claimed to have been bribed.

[JW.Frogen]

Yes, but the Vietnamese officals were bribed with King Prawns, not money.