ASIC deputy chairman Daniel Crennan resigns over expenses scandal

The deputy chair of Australia’s corporate watchdog has resigned after serious questions arose over $70,000 worth of rental expenses.

The corporate regulator’s head of enforcement Daniel Crennan QC has resigned with immediate effect after a row over his $750-a-week rental allowance, and it could prove the first of several heads to roll in coming weeks.

As Australia Post CEO Christine Holgate remains under intense pressure over the purchase of Cartier watches for senior executives, ASIC’s chairman James Shipton has also stood aside over his expenses, including more than $100,000 for personal tax advice.

It follows the Prime Minister announcing he made no apology for putting “a rocket” under public agencies over expenses as thousands of Australians remain out of work as a result of the COVID-19 pandemic.

Mr Crennan, 52, who stands at 198cm tall, is former pub bouncer turned lawyer and the son of former High Court judge Susan Crennan QC.

He previously sparked headlines early in his tenure after he announced the banks should “fear” the corporate regulator.

“It is a shift in how we operate and how we pursue our regulatory imperatives but our stance, coupled with the legislative reform to give us real penalties and real weapons, should be understood by the regulated population to mean that we should be feared and we should be taken very seriously,’’ Mr Crennan said.

RELATED: Posties blast ‘disgusting’ spending from Australia Post CEO Christine Holgate

Daniel Crennan QC ASIC chief prosecutor

Finance Minister Mathias Cormann confirmed at Senate estimates that Mr Crennan resigned on Monday morning, despite earlier advice that his relocation expenses were “consistent with ASIC policy”.

It follows Mr Crennan’s appointment as a Melbourne-based deputy commissioner and a subsequent request that he move to Sydney.

After being advised the relocation policy was consistent with ASIC policy, a subsequent audit found it was not consistent sparking a wider probe into the relocation allowance and expenses at the corporate watchdog.

In a statement, Mr Crennan said he had planned to exit the position next year and in the circumstances it was best to depart immediately.

“ASIC agreed to pay me a relocation package which included a rental allowance,” Mr Crennan said.

“I was told the payment of this allowance was consistent with ASIC policy.

“In September 2020 and early October 2020, I was told of external advice about, and the Australian National Audit Office’s (ANAO) present position concerning, the rental allowance being paid to me. I requested that ASIC cease paying me the rental allowance. I also offered and agreed to repay the rental allowance ASIC had paid to me.”

More heads could roll at ASIC. Picture: Kym Smith

Daniel Crennan has agreed to pay back the money. Picture: Kym Smith

An independent probe into the corporate culture at Australia Post is underway amid reports the government-owned entity splurged tens of thousands of dollars on corporate boxes at sporting events across the country — including at Saturday’s AFL Grand Final.

The Herald Sun reports Australia Post paid at least $100,000 a year for a box at the MCG to entertain clients which Ms Holgate – a Collingwood Football Club board member – also used the corporate box for Magpies games.