Securency May Have Bribed, Offered Prostitutes to Win Orders, Age Reports
Securency International Pty, a banknote-material maker part-owned by the Reserve Bank of Australia, was willing to supply prostitutes and bribe overseas central bank officials to win supply contracts, the Age newspaper reported, citing statements by a former Securency employee who is a witness in an Australian Federal Police probe.
A middleman hired by Securency told the witness that he intended to bribe an Asian central bank governor, and a senior Securency manager told the witness to arrange a prostitute for the visiting deputy governor of an overseas central bank, the newspaper said. The unidentified witness made the comments to the Melbourne-based Age newspaper and the Australian Broadcasting Corp.’s Four Corners program, to be aired tonight.
An RBA spokesperson declined to comment. Securency’s office in Craigieburn, Victoria, directed questions to the RBA. A spokeswoman for the Australian Federal Police in Canberra declined to comment, saying that to discuss current investigations would jeopardize the integrity of the probe.
Formed in 1996, Securency is a joint venture between the Reserve Bank and Innovia Films, and supplies materials used in the printing of banknotes and security documents, according to its website. Polymer notes have been issued in 29 nations, according to the company.
Innovia didn’t reply to a phone message left at its Craigieburn office or an e-mail seeking comment.
In a March 30 statement on its website, Securency said it would implement all 12 recommendations from a report the company commissioned from KPMG International aimed at improving policies relating to agents. That report followed allegations in the Australian media in May 2009 that Securency agents may have bribed foreign government officials, the company said.
Securency immediately referred the matter to police at that time, according to the March 30 statement. The RBA also asked the police to investigate allegations of impropriety at Securency raised in articles last year, the RBA said in its annual report.
To contact the reporter on this story: Nichola Saminather in Sydney at nsaminather1@bloomberg.net; Angus Whitley in Sydney at awhitley1@bloomberg.net
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