Following his repeated criticism of ASIC over its refusal to provide documents to the Senate economics references committee’s inquiry into the regulator’s investigation and enforcement activities, Mr Bragg has stated that the Senate “cannot properly investigate ASIC whilst it continues to obfuscate”.
An interim report tabled in the Senate in June by the committee, which has been investigating ASIC enforcement since last year, rejected 11 of 13 claims for public interest immunity made by ASIC chair Joe Longo.
The report highlighted that while posing over 100 inquiries regarding investigations, including the scrutiny of forensic data software company Nuix and laboratory firm ALS, the committee encountered 13 claims of public interest immunity, which it had assessed as a deliberate attempt to undermine its inquiry.
The committee made an official recommendation in the Senate that ASIC provide the documents, with a deadline set for 18 July. ASIC did not supply the committee with the information, leading to Mr Bragg, who serves as chair of the committee, releasing a statement taking aim at the regulator.
Now, with Ms Gallagher scheduled to appear before the Senate committee, Mr Bragg has again urged the Labor government to act.
“With the support of the executive government, ASIC has treated the Senate with contempt since we established our ASIC Inquiry last October. We cannot do our work whilst this secrecy continues,” Mr Bragg said in a statement.
“It is disappointing that the executive government believes that ASIC should be beyond reproach. The executive government should support our Inquiry to build a strong corporate regulator and end white collar crime in Australia.
“The Minister representing the Treasurer, Katy Gallagher, by Order of the Senate, is now required to explain to the Senate why ASIC has failed to comply with our orders.”
He added that the explanation Ms Gallagher provides must “end the cover-ups and secrecy by ASIC” and “commit to cease the executive’s interference in the inquiry”.
“Firstly, it is clear that there are serious enforcement and governance issues at ASIC which have been covered up,” Mr Bragg said.
“When the Senate has ordered ASIC to provide documents relating to our Inquiry, they rely on public interest immunity (PII) claims to block disclosure.
“If we were seeking sensitive documents relating to current investigations, this would be understandable. But ASIC is using PII to cover up their past law enforcement inaction to the Senate.
“We want to know why ASIC’s law enforcement is defective. This cannot be achieved without access to and inspection of ASIC’s internal investigation and prosecution processes.”
The senator argued that with the investigations at the centre of the requests complete, there is no basis for ASIC’s decision to keep the documents from the Senate.
“Despite our continued orders for these documents, as recently as July, ASIC wrote to the committee refusing to provide these documents. Instead, ASIC requested an in camera hearing, which is closed to the public,” Mr Bragg said.
“This is ASIC further delaying the Senate’s work, and impeding our ability to perform our oversight responsibilities.
“ASIC has also used PII to refuse to provide the Senate with documents relating to an internal investigation conducted into ASIC’s deputy chair.”
He also claimed that Labor has sanctioned ASIC’s evasion of Senate orders through the use of PII, adding that Treasurer Jim Chalmers also refused to comply with the Senate order for the production of documents in relation to Treasury’s investigation into ASIC’s deputy chair in March.
Writing to the Senate at the time, Mr Chalmers said: “There is a public interest in preserving the integrity of fact-finding investigations regarding an individual’s conduct.”
“The Treasurer should not be placing the interests of the ASIC Commission above the public interest,” Mr Bragg said.
“The public deserves to know what allegations were made against ASIC’s deputy chair, and what actions were taken where $200,000 of taxpayers funds was expended on a secret investigation.”
He also cited Minister for Financial Services Stephen Jones writing to the Senate in July as further sanctioning ASIC’s refusal, with Mr Jones stating “an in camera hearing is the appropriate way forward”.
“The committee is seeking information about these closed cases because they could shed light on ASIC’s ability to achieve prosecutions in certain circumstances,” Mr Bragg said.
“The executive government must stop defending ASIC. The excessive use of PII is impeding the Senate’s ability to properly investigate.
“ASIC is out of runway, but the Albanese government keeps extending it. It is now up to Labor to put an end to ASIC’s obfuscation.”
I support Andrew Bragg on this matter. What security is there for the millions of workers who have been mandated to place their superannuation contributions with Industry Funds?
Why didn’t he say this when his side were in power?
A politician finally holding ASIC to account. Can we have Senator Bragg replace Jones?
You want to have a man who wants to end compulsory super as finance minister? Sure mate
I’m ok with it – it is very likely that many people are paying tax on earnings of their super when they are ytrying to raise a family or simply low income earns? Make Super voluntary?
Compulsory super the gravy train
Still better than Jones comrade
Compulsory super was set up to save the union movement, (i.e. the ALP’s financial lifeline) and to provide cushy jobs for former Labor politicians (e.g. Greg Combet, Steve Bracks, Nicola Roxon, Wayne Swan).
Bragg seems more woke on most issue than the Greens, so he’d fit in with Labor if he did pursue replacing Jones.
Some days I just want out of all this and simplify my life.
Most days. Why theres so few advisers left and dwindling by the day. Soon will be super fund call centres only flogging their own product. Global joke.