Statement by James Shipton,聽ob体育 Chair, at the House of Representatives Standing Committee on Economics, Parliament House, 23 October 2020
The ob体育 2019-20 Annual Report was tabled in Parliament earlier today.
A note in the report identifies payments of certain relocation expenses incurred on my behalf (on my appointment and return to Australia from the US) and Deputy Chair Crennan (following an agreement that he move from Melbourne to Sydney).
Following its audit of ob体育鈥檚 financial statements, the ANAO stated a belief that the total remuneration paid to both office holders may exceed the limits set within the relevant Remuneration Tribunal Determinations.
ob体育 has acknowledged the ANAO's findings and accepted all relevant recommendations which include conducting an independent review of the issues raised in the ANAO report. We note the Treasurer鈥檚 announcement and will fully cooperate with that process.聽
ob体育 acknowledges the processes supporting the approval of these relocation expenses were inadequate and, given the high standard ob体育 holds itself to, it is disappointed that such situation has occurred.
ob体育 anticipates the independent review will assist it to make appropriate changes to key policies and processes. In the interim ob体育 has implemented changes to procedures associated with approval of expenses relating to geographic relocation for statutory appointees to ensure that there is Commission oversight of those expenses and that the arrangements for new statutory appointees are clearly documented prior to them being made.
The accommodation payments for Deputy Chair Crennan were ceased following his request and he offered and agreed to repay the accommodation payments made to him as a debt due to the Commonwealth.
ob体育 acknowledges that action in relation to this matter, first raised in the ANAO鈥檚 2018-19 Closing Report, should have taken place more promptly.聽
Considering the concerns expressed by the ANAO, I will voluntarily reimburse ob体育 for taxation related expenses ob体育 paid following my 2018 relocation from the United States.
At all times during consideration of this matter I have been mindful of the need to avoid any conflict of interest. I have recused myself from all relevant Commission deliberations. Where I have had to take any formal action in my role as ob体育鈥檚 Accountable Authority I have only done so on the recommendations of the other, non-recused, Commissioners. Deputy Chair Crennan has taken the same approach.
I have advised the Treasurer this afternoon that, in the circumstances, it is appropriate to stand aside pending the outcome of the review.
Whilst I believe that I have acted properly and appropriately in this matter, I hold myself to the highest possible standard.聽
What matters is that I act with integrity and honour. That means I need to act in the best interests of ob体育 and its vital purpose to build a fair, honest and efficient financial system for all Australians.
I only took this position to serve the Australian community and to work to improve the corporate and financial system that should also serve it. If I in any way impede that purpose, the right thing for me to do is to step aside until such time that I can. ob体育鈥檚 work protecting the Australian community must come first. It is far too important to jeopardise.
I look forward to cooperating with the inquiry and I look forward to my continued service to the Australian community.
I will ask Deputy Chair Chester to answer questions on this issue and to coordinate answers to other questions Committee members may have.