Longo consulted only one ASIC staffer on Chester allegations
The only person the chair of the Australian Securities and Investments Commission (ASIC) Joe Longo spoke to before deciding not to take further action against his deputy chair, Karen Chester, was his chief of staff.
ASIC has confirmed the limited nature of Longo’s internal ASIC consultation in an answer to a question on notice from the chair of the Senate Economics Legislation Committee, NSW Labor Senator Deborah O’Neill.
O’Neill had asked Longo who, within ASIC, he had consulted before making the decision to take no action.
ASIC’s formal answer to O’Neill was that: “Having had the opportunity to consult with ASIC staff, the only ASIC staff member that ASIC’s Chair spoke to prior to making is decision to take no further action was his Chief of Staff, Louise Macaulay.
Also confirmed by ASIC was the fact that the complaint was made directly to the Secretary of the Treasury rather than via ASIC’s internal complaints-handling system.
Investigation of the complaint against Chester was undertaken by an external law firm retained by Treasury, with Chester in a separate response to a question on notice saying she had been informed of allegations made against her on 1 June, 2021.
ASIC provided the Senate Economics Committee with a formal response provided by Chester in response to a question on notice from NSW Liberal Senator, Andrew Bragg.
That response was, as follows:
“The evidence I provided to this Committee on 1 March 2023 that there were no adverse findings made against me following a Treasury investigation was made on the basis of my knowledge of the investigation contained in written communications I received from the Treasury Secretary and ASIC Chair and as such satisfies Senate Privileges Resolution 6(12).”
Specifically, the information that informed my evidence to the Committee on 1 March 2023 is a collective reading of three letters: (i) the letter to me from the Treasury Secretary of 1 February 2022; (ii) the letter to me from the ASIC Chair of 28 February 2022; and (iii) the letter to the ASIC Chair from the Treasury Secretary of 1 February 2022 (first received by me on 22 February 2023).”
“I was informed on 1 June 2021 that allegations had been made against me and that the Treasury had been instructed by the then Treasurer to initiate an investigation. I participated fully in the investigation and vigorously contested the allegations.”
“I was advised of the outcome of the investigation on 1 February 2022 by way of a letter to me from the Treasury Secretary. In the letter, the Treasury Secretary stated that he had reviewed the confidential and legally privileged investigation report and concluded there was an insufficient basis on which to advise the Treasurer to take any further formal steps relating to potential actions under section 111 of the ASIC Act. The letter did not inform me of any adverse findings, nor offer the opportunity to contest any findings. The letter also advised me that the outcome of the matter had been referred to the ASIC Chair for consideration of next steps.”
“I was advised of the outcome of the ASIC Chair’s consideration of next steps by letter dated 28 February 2022. The letter from the ASIC Chair stated that he had considered the outcome of the investigation in light of ASIC’s Code of Conduct and confirmed that he did not propose to take the matter any further and that the matter had concluded. The letter contained no adverse findings, and further no code of conduct review was undertaken. The Committee was provided with copies of these letters on 22 February 2023.”
“It was not until 22 February 2023 that, in the context of the Senate Estimate hearings, I received a copy (for the first time) of the Treasury Secretary’s letter to the ASIC Chair dated 1 February 2021. The letter, including the third paragraph in that letter (which is not in the 1 February 2021 letter to me), does not record that an adverse finding was made against me; it is inconclusive. Further the letter refers the matter to the ASIC Chair for his consideration of next steps. The ASIC Chair considered the outcome of the investigation in light of ASIC’s code of conduct and decided not to take the matter any further. No code of conduct review was undertaken.”
“At this time, I have not been provided with (or seen) a copy of the Treasury investigation report and I have not been told of its contents.”
Longo…leaving no stone unturned…