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You can find the current article at its original source at http://www.theguardian.com/commentisfree/2014/jan/30/union-corruption-must-be-stamped-out-business-finance-must-be-tackled-too

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Union corruption must be stamped out. Business finance must be tackled too Union corruption must be stamped out. Business finance must be tackled too
(7 months later)
Two days ago, allegations surfaced of kickbacks and corruption in the ranks of the Construction, Forestry, Mining and Energy Union (CFMEU), resulting from a joint investigation by Fairfax and the ABC.Two days ago, allegations surfaced of kickbacks and corruption in the ranks of the Construction, Forestry, Mining and Energy Union (CFMEU), resulting from a joint investigation by Fairfax and the ABC.
The union giant, which has 140,000 members across its represented trades, is one of the bastions of progressive, direct action unionism in this country. It has 600 employed staff and officials. The corruption allegations, which centre on the construction division, involve around 50 officials accused of taking bribes from businesses to minimise the likelihood of industrial disruption in building projects.The union giant, which has 140,000 members across its represented trades, is one of the bastions of progressive, direct action unionism in this country. It has 600 employed staff and officials. The corruption allegations, which centre on the construction division, involve around 50 officials accused of taking bribes from businesses to minimise the likelihood of industrial disruption in building projects.
Despite the whistleblower being a committed, long-term veteran of the trade union movement, despite the fact it was the CFMEU itself that referred the corruption allegations to police in Victoria and New South Wales with full co-operation, despite loud condemnations from the Australian Council of Trade Unions who have reacted to the allegations with sincere horror across social media, the conservative Coalition government of Tony Abbott are seizing on the revelations to moot a royal commission into the trade union movement itself. Employment minister Eric Abetz wants “greater scope” for investigations, and harsher punishments. Effectively, the entire Australian union movement is to be put on government trial.Despite the whistleblower being a committed, long-term veteran of the trade union movement, despite the fact it was the CFMEU itself that referred the corruption allegations to police in Victoria and New South Wales with full co-operation, despite loud condemnations from the Australian Council of Trade Unions who have reacted to the allegations with sincere horror across social media, the conservative Coalition government of Tony Abbott are seizing on the revelations to moot a royal commission into the trade union movement itself. Employment minister Eric Abetz wants “greater scope” for investigations, and harsher punishments. Effectively, the entire Australian union movement is to be put on government trial.
There’s no doubt that the allegations are embarrassing and, should they be proved true, completely shameful. Corruption is disgusting criminality from wherever it originates, and should charges be proved against bribe-takers, standover men and illegal associations, I sincerely believe that each and every criminal should be sent to jail. I share the opinions of conservative commentators that punishing the corrupt is just, and fair.There’s no doubt that the allegations are embarrassing and, should they be proved true, completely shameful. Corruption is disgusting criminality from wherever it originates, and should charges be proved against bribe-takers, standover men and illegal associations, I sincerely believe that each and every criminal should be sent to jail. I share the opinions of conservative commentators that punishing the corrupt is just, and fair.
It’s for this reason that I’m asking my conservative brethren in the commentariat to join me in demanding to also seek the fair and just punishment of those accused of corruption in other spheres of Australian life.It’s for this reason that I’m asking my conservative brethren in the commentariat to join me in demanding to also seek the fair and just punishment of those accused of corruption in other spheres of Australian life.
I don’t understand, for example, why the full weight of punishment is not being brought against the chairman of collapsed Tasmanian timber company Gunns, John Gay, who is not being made to hand back the $1m he made from insider trading. He was convicted in a court of law, and found guilty of illegally selling 3.4m Gunns shares in 2009 to unsuspecting investors when he was in possession of price sensitive information. He was chairman of a publicly traded corporation but was merely fined $50,000, and is currently fighting to regain his suspended right to manage companies again. The Australian Federal Police were looking at using Commonwealth proceeds of crime laws to pursue Gay for $800,000 made from the sale but, according to news reports, a decision was made "not to continue with any proceeds of crime action”.I don’t understand, for example, why the full weight of punishment is not being brought against the chairman of collapsed Tasmanian timber company Gunns, John Gay, who is not being made to hand back the $1m he made from insider trading. He was convicted in a court of law, and found guilty of illegally selling 3.4m Gunns shares in 2009 to unsuspecting investors when he was in possession of price sensitive information. He was chairman of a publicly traded corporation but was merely fined $50,000, and is currently fighting to regain his suspended right to manage companies again. The Australian Federal Police were looking at using Commonwealth proceeds of crime laws to pursue Gay for $800,000 made from the sale but, according to news reports, a decision was made "not to continue with any proceeds of crime action”.
Um, why not?Um, why not?
If allegations of insider trading are proved true against "playboy prince" investor Oliver Curtis, there is certainly broader scope for investigation into a culture of corruption in Australian business. Curtis’ best friend, John Hartman, a former employee of Orion Asset Management, has gone to jail for confessing to no less than 25 instances of insider trading, with another 32 taken into account on sentence. Curtis is accused of taking information from Hartman and trading upon it illegally to make millions – charges that Curtis is fighting. If allegations of insider trading are proved true against "playboy prince" investor Oliver Curtis, there is certainly broader scope for investigation into a culture of corruption in Australian business. Curtis’ best friend, John Hartman, a former employee of Orion Asset Management, has gone to jail for confessing to no less than 25 instances of insider trading, with another 32 taken into account on sentence. Curtis is accused of taking information from Hartman and trading upon it illegally to make millions – charges that Curtis is fighting.
As allegations themselves are enough to prompt a royal commission into trade unionism itself, certainly a growing number of convictions for insider trading – involving much larger sums than those accused from the CFMEU – demands a thorough investigation of Australian business practice? It was, after all, business money that’s alleged to have paid off the accused CFMEU officials; corruption is, of course, a dance that demands a partner.As allegations themselves are enough to prompt a royal commission into trade unionism itself, certainly a growing number of convictions for insider trading – involving much larger sums than those accused from the CFMEU – demands a thorough investigation of Australian business practice? It was, after all, business money that’s alleged to have paid off the accused CFMEU officials; corruption is, of course, a dance that demands a partner.
In a shared spirit of justice and fairness, surely noone could argue that Australian business culture doesn't deserve as much public scrutiny as the Coalition wish to mete out on the unions. If Abetz is righteously inspired to further investigate union finances, I also encourage him to seek greater clarity in the financial affairs of big business.In a shared spirit of justice and fairness, surely noone could argue that Australian business culture doesn't deserve as much public scrutiny as the Coalition wish to mete out on the unions. If Abetz is righteously inspired to further investigate union finances, I also encourage him to seek greater clarity in the financial affairs of big business.
The Australian Securities and Investments Commission, for example, has consistently failed to receive on time the financial reports of some of Australia’s biggest public companies, despite it being the law and in the national interest. For example, Hancock Prospecting, owned by mining magnate Gina Rinehart, didn’t lodge its end of financial year reports for 2010 or 2011 until the end of 2012 - despite being legally obliged to have those reports made available on these ASIC public database within four months of their completion. These are financial reporting obligations of the Corporations Act, and yet the delays mean they’re not being met. If this government is dedicated to organisational transparency, rigorous inquiry into why one of Australia’s largest companies isn’t reporting on time might yield some fascinating insights into the culture of Australian corporatism. It is, after all, in the interests of investors, consumers, employees, creditors and the government to be able to have timely financial information so as to make informed business decisions.The Australian Securities and Investments Commission, for example, has consistently failed to receive on time the financial reports of some of Australia’s biggest public companies, despite it being the law and in the national interest. For example, Hancock Prospecting, owned by mining magnate Gina Rinehart, didn’t lodge its end of financial year reports for 2010 or 2011 until the end of 2012 - despite being legally obliged to have those reports made available on these ASIC public database within four months of their completion. These are financial reporting obligations of the Corporations Act, and yet the delays mean they’re not being met. If this government is dedicated to organisational transparency, rigorous inquiry into why one of Australia’s largest companies isn’t reporting on time might yield some fascinating insights into the culture of Australian corporatism. It is, after all, in the interests of investors, consumers, employees, creditors and the government to be able to have timely financial information so as to make informed business decisions.
As we are all committed to justice and fairness, we must be committed to equal standards of accountability and transparency. Corruption, after all, thrives in a corrupt culture, and its in the interests of all Australians to fight corruption wherever it should take root. So minister Abetz, I look forward to witnessing your equanimity in your investigations. Righteousness is equal opportunity, after all.As we are all committed to justice and fairness, we must be committed to equal standards of accountability and transparency. Corruption, after all, thrives in a corrupt culture, and its in the interests of all Australians to fight corruption wherever it should take root. So minister Abetz, I look forward to witnessing your equanimity in your investigations. Righteousness is equal opportunity, after all.