RBA to sell Securency stake, Brown furious

Australian Greens Leader Bob Brown is outraged that the Reserve Bank has never been
taken to task over its subsidiary Securency, which is under police investigation.
The central bank announced on Tuesday that it is selling its half-share in the
high-tech polymer banknote business, a company that is embroiled in allegations of
bribery and fraud.
The Reserve Bank said its joint-venture partner, UK-based Innovia Films Ltd, had
informed the central bank of its intention to sell its half-share of the business.
This prompted the Reserve Bank board to consider its ownership options.
"It has concluded that, in view of Innovia's decision, the unsolicited expressions
of interest that the Reserve Bank has also received, and taking account of the
board's long-standing intention to exit from Securency once the company had
established itself as a viable long-term supplier in the international market for
banknote substrate, the best option would be to pursue a joint sale with Innovia,"
it said in a statement.
Macquarie Capital Advisers had been appointed as the adviser to both parties.
Senator Brown had put a motion in the Senate on Tuesday calling for an inquiry into
Securency.
Although Family First Steve Fielding voted for Senator Brown's motion, it failed to
win support from either of the big parties and was defeated.
"Again the big parties did the wrong thing by refusing a Senate inquiry," Senator
Brown told reporters in Canberra.
"That is not going to alter the fact there is a huge question over the Reserve
Bank's due diligence here."
Securency has been accused of bribery to induce officials in Asian and African
countries to use its banknote products.
The allegations sparked investigations by police forces including the Australian
Federal Police (AFP), the UK Serious Fraud Office and Malaysia's Anti-Corruption
Commission (MACC).
In September, the MACC arrested three people in connection with the case. Last
month, police in the UK, Spain and Australia conducted a series of raids, including
operations by the AFP in at least six locations in Victoria.
Senator Brown said Fairfax media at the weekend had further allegations of millions
of dollars being siphoned to a tax haven in the Seychelles while the police
investigation was taking place.
"The question marks go straight to (Reserve Bank governor) Glenn Stevens," Senator
Brown said.
"(The bank is) supposed to be looking after the economy of this country .. What on
earth has the Reserve Bank and the Reserve Bank governor been doing while this
process has unfolded."
Mr Stevens and his economics team are due to face the House of Representatives
economics committee on Friday in Canberra for its six-monthly grilling over the
economy and its interest rate policy.
But Senator Brown said this committee was not set-up for this type of inquiry into
Securency.
"Experience shows that questions on this matter, if they are put up, are ducked, and
there is no forensic follow-through as there needs to be in a proper committee
inquiry," he said.



------------------------------------------------------------------------------
This email is intended for the use of the addressee only. If you receive this email
in error, please delete it immediately. This email may contain information which is
confidential and/or legally privileged. You must not use or disclose the contents of
this email, or add the sender's email address to any database, list or mailing list
unless you are expressly authorised to do so. The statements or views expressed in
this email are those of the individual sender and are not those of Australian
Associated Press Pty Ltd (AAP). These statements are not binding on AAP, except
where the sender expressly and with authority, states them to be. AAP is unable to
review the contents of all the email on its system. To the extent permitted by law,
AAP disclaims all liability for any loss or damage caused by the contents of this
email. www.aap.com.au