Australian currency firms charged with bribery

Friday, July 1, 2011 · Posted in

Australian currency firms charged with briberyAustralian federal police charged two currency printing firms and several of their former senior managers on Friday with bribing foreign officials to secure bank note supply contracts.

The charges against Securency International Pty Ltd. - one of the world's leading currency printing firms - and Note Printing Australia Ltd. relate to alleged bribes paid to officials in Indonesia, Malaysia and Vietnam between 1999 and 2005.

The Australian Federal Police have been investigating the companies for two years. It says senior managers from both firms used international sales agents to bribe the officials to win contracts to print money for those countries.

Police arrested six former senior employees of the companies in a series of early morning raids in Victoria state. Malaysian authorities working in conjunction with Australian police also arrested two people in Malaysia following an investigation by the Malaysian Anti-Corruption Commission. Australian police did not release the identities of those arrested in either country.

Securency, based in Craigieburn, north of Melbourne, is half-owned by the Reserve Bank of Australia, the nation's central bank. The company is a pioneer in the production of plastic-based bank notes, known as polymer notes, which are used in 31 countries, including Australia, New Zealand, Vietnam and Brazil. Note Printing Australia, also based in Craigieburn, is fully owned by the RBA and was the first currency printer in the world to print on polymer substrate.

RBA Gov. Glenn Stevens said no one in the central bank has been accused of wrongdoing, and stressed that none of the people charged are still working for the companies.

"The Reserve Bank condemns in the strongest terms corrupt or questionable behavior of any kind," Stevens said in a statement.

Prime Minister Julia Gillard declined to comment on the charges.

In a statement, Securency Chairman Bob Rankin said the company is considering its legal position. Rankin said its board asked police to investigate allegations of bribery in 2009 and has fully cooperated with the probe since then.

"Securency is committed to the highest standards of ethics and governance and the board and management condemn any form of corrupt behavior," Rankin said.

Australian Federal Police managing officer Chris McDevitt said the investigation is continuing, and additional charges are expected.

The six people charged were expected to appear in a Melbourne court later Friday. They face up to 10 years in jail and a fine of up to 1.1 million Australian dollars ($1.2 million) if found guilty.

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