ASIC CEO James Shipton resigns over $ 118,000 in moving payments

The chairman of the Australian Securities and Investment Commission, James Shipton, announced this on Friday in a statement to the Standing Economic Committee of the House of Representatives.

ASIC’s annual report found that in 2018 spent $ 118,557 on tax advisory fees related to Mr Shipton’s return to Australia from the United States and $ 69,621 last year on moving Vice Chairman Daniel Crennan from Melbourne to Sydney were.

The Australian National Audit Office (ANAO) reviewed ASIC’s financial statements and found that the total compensation paid to both men could exceed the limits set out in the relevant provisions of the Remuneration Tribunal.

There have also been cases of Commonwealth procurement rules not being followed, noted Treasurer Josh Frydenberg.

“ASIC has recognized the results of the ANAO and accepted all relevant recommendations, including an independent review of the issues raised in the ANAO report,” the corporate cop said in a statement.

“ASIC acknowledges that the processes to support the approval of these relocation costs were inadequate and is disappointed that such a situation has occurred given the high standards that ASIC adheres to.

“ASIC expects the independent review will help make important changes to key policies and processes.”

Mr Shipton said he had advised Mr Frydenberg to stand aside pending the review.

“Although I believe I have acted correctly and appropriately on this matter, I am sticking to the highest possible standard,” he said.

“I took this position only to serve the Australian community and to improve the business and financial systems that should serve them.

“If I still obstruct this purpose, it is right for me to step aside.

“ASIC’s work to protect the Australian community must come first. It’s far too important to compromise. ”

ASIC said Mr Crennan asked to stop the housing payments and he offered and agreed to return the money.

Mr Shipton said he will also voluntarily reimburse the money and work with the review led by Public Administration Advisor Dr. Vivienne Thom, through the Treasury and is expected to be completed by the end of the year.

“The Treasury Department will advise me on the results of the review and possible further action,” said Frydenberg.

Mr Shipton said the matter was first raised in a 2018-19 ANAO report and that action “should have taken place more quickly”.

Standing Economic Committee vice chairman Andrew Leigh asked Friday if the government had known of the matter for more than a month, and ASIC deputy officer Karen Chester confirmed that Mr Frydenberg’s office had been aware of it since September 15 Had knowledge.

“His testimony implied that he didn’t find out about it until October 22,” Leigh told NCA NewsWire.

In fact, a year ago a media report found that Daniel Crennan was paid more than the Chief Justice of the High Court, which should have raised a red flag for the Morison administration. ”

According to the 2018 Remuneration Tribunal ruling, the base salary of the Chief Justice of the High Court is $ 596,220.

ASIC’s annual report shows that Mr. Shipton’s base salary was $ 811,654 while Mr. Crennan received $ 634,785 over the 2019-20 period.

“Even so, they have looked at these issues extensively and still provide little detail about the tax advice that is at the heart of James Shipton,” said Leigh.

“As I greet Vivienne Thom, who is leading the investigation, I am amazed at why the treasurer decided it had to take more than two months.

“It is irresponsible to have the company’s watchdog leaderless for two months in the midst of a pandemic and recession, and it shows that the government is not moving fast enough in investigating wrongdoing.

“It’s exactly the kind of move you would expect from a government that defied the Royal Commission of Banking and continues to refuse to create a federal ICAC.”