NAB boss Andrew Thorburn speaks of ‘grief’ over alleged fraud

NAB’s Andrew Thorburn’s “sadness” that someone with whom he had a personal relationship is probed over fraud.

NAB CEO Andrew Thorburn has spoken of “grief” following revelations the bank has been targeted by an alleged corporate fraud. Pic: Kym Smith

National Australia Bank chief executive Andrew Thorburn says he felt sadness and grief after discovering someone with whom he had “a longstanding personal relationship” was allegedly involved in a multimillion-dollar fraud against the lender.

Mr Thorburn today said he would not discuss the identity of those connected to the investigation but said the bank would back police to take whatever action they deemed necessary.

The long-serving chief of staff to Mr Thorburn, Rosemary Rogers, resigned from the bank in December after a whistleblower complaint was lodged internally about an alleged corporate fraud arrangement.

“I’m hurt because there are people here who are alleged to have been involved that I know who they are and — particularly in one case — I’ve had a longstanding personal relationship,” Mr Thorburn told reporters in Sydney while attending a leadership summit.

NAB yesterday confirmed it was targeted by an alleged corporate fraud after Strike Force Napthali, established by NSW State Crime Command’s Financial Crimes Squad, raided several buildings connected to a group the bank had told police was obtaining contracts through an alleged relationship that centred on inflated invoices.

Offices of the Human Group, which provided executive services and event management logistics to NAB for about a decade, were raided and a large number of documents and electronic storage devices seized by police. The Potts Point, Sydney, house of Human Group chief executive Helen Rosamond was also raided.

Ms Rogers, who did not respond to requests for comment when contacted yesterday, worked at NAB for more than 20 years. She held the role of chief of staff to the chief executive since 2009, serving former boss Cameron Clyne and, from 2014, Mr Thorburn.

The Australian is not suggesting the allegations are true, only that they are being investigated. Nor is it suggesting any wrongdoing on the part of Ms Rogers, who now runs her own consulting group in Melbourne, according to her LinkedIn profile. NAB provided its findings from an internal review to police mid-February.

Mr Thorburn said he would answer questions more fully if allegations were “proven and confirmed”.

“But I would like to respect the police investigation. We are co-operating with it but we are not involved in it,” he said. “There was a sadness and a difficulty and I would like to give them space. It’s not appropriate for me to answer that now, but I will in the fullness of time if that’s appropriate.

“There have been times, in my career in banking, where people have stepped over a line. That line is the line of what’s legal and what’s the law. They commit actions for their own gain which, when they’re found, it always ends in a very unfortunate situation for them and their families.

“That’s the other thing in these cases, there are people involved who I know and have worked with and there is a grief I have for them as well as deeply for the bank.”

NAB ended its relationship with the Human Group in January this year after an internal review raised concerns about the relationship between the two companies. NAB had given the findings from its review, which was sparked by an internal whistleblower complaint, to investigators. The scheme allegedly involved a person receiving commissions for making the lender pay inflated invoices.

Mr Thorburn could not confirm the amount of money that had allegedly been siphoned out of the bank. “In the amounts, they are not material for the bank but they are material to our reputation and I want to own that because I’m proud of our company,” he said.

“The company is strong, it’s growing and we have the vast, vast majority of our people who are good people, who have great integrity, and who have at the heart of what they do, trust. And that’s what banking has been over my 30 years,” he said.

Mr Thorburn said the bank would update investors at its half-year results on May 3.