ASIC boss quits, Labor launches integrity attack

Labor has put integrity at the top of the political agenda as the deputy chair of the corporate regulator ­resigned over the use of taxpayer funds on relocation expenses.

Daniel Crennan QC ASIC chief prosecutor.

Labor has put integrity at the top of the political agenda as the deputy chair of the corporate regulator ­resigned over concerns about the use of taxpayer funds on his relocation expenses.

Anthony Albanese led the charge in question time to link the Morrison government to scandals at the Australian Securities & ­Investments Commission and Australia Post, strengthening his calls for the rollout of a national ­integrity commission.

The sole focus of Labor in question time was on issues of government probity after Daniel Crennan resigned from ASIC due to concerns raised by the commonwealth auditor about his claiming of nearly $70,000 in ­rental costs to relocate from Melbourne to Sydney.

ASIC chairman James Shipton on Friday stood aside from his position as Treasury launched an independent review into how the regulator allowed him to rack-up a $118,557 taxpayer-funded bill for his tax advice.

Mr Albanese used the scandals at the government-controlled agencies to highlight controversies under the leadership of Scott Morrison, including the “sports rorts” saga and the Leppington Triangle land purchase.

“Why is the Prime Minister ­‘appalled and shocked’ at the ­behaviour of a government employee who spent $20,000 of taxpayers’ money on Cartier watches, when the Prime Minister himself and ministers sitting behind him have repeatedly shown they draw no distinction between taxpayers’ interests and their own political and private interests when spending tens of millions of taxpayer dollars?” he asked.

 

Mr Morrison rejected Mr Albanese’s claims and labelled it a “desperate tactic from a very desperate man that’s lost the confidence of (Labor MPs)”.

Labor MP Milton Dick ­revealed an Australia Post outlet on the Gold Coast displayed Liberal National Party campaign ­material on its windows in the lead up to Saturday’s Queensland election, while other Labor MPs raised concerns over the number of Liberal-linked appointees to the boards of Australia Post and the Administrative Appeals Tribunal.

Josh Frydenberg rejected claims from opposition Treasury spokesman Jim Chalmers that he was aware of the ASIC scandal a month ago.

The Treasurer confirmed he received an email from Auditor-General Grant Heir in September saying he would ­receive a letter regarding concerns over “payments” at ASIC. He received the letter on October 22 and called an inquiry the next day.

“As Treasury confirmed to Senate estimates this morning, their advice has been consistent throughout that I should await the letter from the Auditor-General, after which they would provide ­advice,” Mr Frydenberg said.

Treasury secretary Steven Kennedy on Monday told a Senate estimates hearing he and deputy secretary Meghan Quinn on September 28 received calls from ASIC deputy chairwoman Karen Chester. Ms Quinn said Ms Chester advised her “that the Auditor-General had some issues with the signing of the financial ­accounts”.

Ms Quinn said Ms Chester had indicated it was “around the remuneration of key management”.

Following a similar discussion on the same day, Dr Kennedy ­advised Mr Frydenberg’s chief of staff about the call. Dr Kennedy tabled two letters Mr Shipton wrote to Mr Frydenberg on October 16. In the first, Mr Shipton advised that he had recused himself from responding to the ANAO’s draft findings released earlier that month. His other letter summarised and attached ASIC’s ­response to those findings.

Ms Quinn said she then had a “series of conversations” with the Treasurer’s office, and that “our advice was to wait for the final conclusion of the ANAO report”.