Topics: Perth Mint Senate Inquiry
E&OE
JO TRILLING
Now, Good afternoon, Senator.
DEAN SMITH
Good afternoon, Jo. Not quite sure what happened there, but I’m here.
JO TRILLING
Got you in the end, that is all that matters. Let’s start with those at the top of Perth Mint. You questioned current chair Sam Walsh and CEO Jason Waters about those other investigations. Are you satisfied by their compliance?
DEAN SMITH
What was important about today was that even though it was the third public hearing of the Inquiry, it was the first hearing here in Western Australia. And it was the first opportunity that anybody had to hear directly from Sam Walsh and Jason Waters, Minister Bill Johnson and the WA Auditor General. I think there was broad agreement that things could have been done better. No question about that. Sam Walsh made a comment to that effect. I think Minister Johnson also, you know, reflected on that. For me, I think there are some still some important issues that remain unanswered. And there was particular evidence that we received from the Perth Mint, from the chair of their Audit and Risk Committee, and I wasn’t satisfied with the answers I was provided in regards to why, between 2018 and 2020, those internal audit processes didn’t pick up something as significant as the Euro Pacific Bank matter. And, your listeners might recall, this is the situation with a dodgy, phoenix bank, situated in a tax haven, under investigation in five different countries. It was only when that matter was revealed in the Australian Financial Review on the 18th of October in 2020 did the Perth Mint take some action. So still some important questions to be answered. But I would say this, Jo. This Inquiry is happening here in Perth because the State Labor Government denied an opportunity for the WA Parliament to do its own inquiry.
JO TRILLING
Do you think you’ll get those answers, Senator?
DEAN SMITH
Yes. To be fair, Jo, what was productive about today is the Perth Mint made themselves available. And the reason that we landed on this day for the hearing here in Perth is because we were negotiating behind the scenes to find a date when the Perth Mint could appear in person. When Jason Waters, Mr Walsh, and John O’Connor, the chair of their Risk and Audit Committee could appear in front of Senators like myself and Senators Reynolds and Brockman and others. The Perth Mint have been very obliging in responding to questions that we put on notice to them. So, a constructive first step.
JO TRILLING
At one point, Mr Walsh said he did not familiarise himself with major clients at the time. Just how concerning is this admission?
DEAN SMITH
That was an admission Mr Walsh made in response to a question from me, and I was surprised about that because he had been brought on as the chair of the board at the request of the former Premier Mark McGowan specifically to improve governance arrangements. And, by his own admission, he said he would go through or did go through a due diligence process. But when I specifically asked him about what effort he went to to acquaint himself with issues around banks, and particularly foreign banks, that’s when he made that admission.
JO TRILLING
Yeah. Well, surely that is his role as chair to be over those details.
DEAN SMITH
It’s the role of any chair, and particularly when the former Premier had asked Mr Walsh to come onto the board for that specific reason. I think that gave us a glimpse, an important and credible glimpse, into why there’s still an opportunity for further questions to be asked. But, like I said, my surprise was in regards to questions I asked the Audit and Risk chair, Mr O’Connor, who had been on the board since 2016, prior to Mr Walsh’s appointment in 2019. We’ve still got some way to go on this and I’ll, when we go back to Canberra next week, be asking my Senate colleagues to agree a schedule that I have. I would like the Perth Mint to come back. I’ve got some questions for the Audit Committee. And I think there’s a case for Richard Hayes, the former CEO, to come before the Committee and explain himself.
JO TRILLING
You also questioned Bill Johnson, whose portfolio oversees the Mint. He argued that much of what has been reported by the media doesn’t actually relate to Perth Mint’s compliance with Commonwealth legislation. The goal of this Inquiry, are you sure this was the best use of Federal resources?
DEAN SMITH
Absolutely. What Minister Bill Johnson was doing was drawing a distinction between allegations that some people had been making around money laundering and the regulatory compliance, or the Mint’s compliance with Commonwealth anti-money laundering and counter-terrorism financing laws. The terms of reference are very, very specific. What this Committee Inquiry is looking at is compliance with those AML and CTF obligations. And that’s why AUSTRAC was required to appoint the independent auditor. That’s why that independent auditor has provided a report back to AUSTRAC, and AUSTRAC is now examining that. So I didn’t take that as a criticism of the work of the Committee, not at all. In fact, I think the evidence today, but also the evidence that we’ve been able to glean over three hearings, means this has been a necessary piece of work. Remembering, Jo, that the former Premier Mr McGowan, the current Premier Mr Cook, Mr Johnson, could have allowed the Parliament to initiate this Inquiry themselves and to keep it wholly within the remit of the WA Parliament. I’m grateful that West Australian Senators got together and said, if the WA Parliament’s not going to step up to its responsibilities, then we will set up a Senate Inquiry into the matter.
JO TRILLING
Thanks for your time, Senator.
DEAN SMITH
Always a pleasure.
ENDS