Showing posts with label corruption. Show all posts
Showing posts with label corruption. Show all posts

Friday, 20 July 2018

Slowly but surely Russian connections between the UK Brexit referendum campaign and the US presidential campaign are beginning to emerge


“We have concluded that there are risks in relation to the processing of personal data by many political parties. Particular concerns include: the purchasing of marketing lists and lifestyle information from data brokers without sufficient due diligence, a lack of fair processing, and use of third party data analytics companies with insufficient checks around consent….We have looked closely at the role of those who buy and sell personal data-sets in the UK. Our existing investigation of the privacy issues raised by their work has been expanded to include their activities in political processes….The investigation has identified a total of 172 organisations of interest that required engagement, of which around 30 organisations have formed the main focus of our enquiries, including political parties, data analytics companies and major social media platforms…..Similarly, we have identified a total of 285 individuals relating to our investigation.” [UK Information Commissioner’s Office, Investigation into the use of data analytics in political campaigns: Investigation update, July 2018]

Slowly but surely the Russian connections between the UK Brexit referendum campaign and the US presidential campaign are beginning to emerge.

The Guardian, 15 July 2018:

A source familiar with the FBI investigation revealed that the commissioner and her deputy spent last week with law enforcement agencies in the US including the FBI. And Denham’s deputy, James Dipple-Johnstone, confirmed to the Observer that “some of the systems linked to the investigation were accessed from IP addresses that resolve to Russia and other areas of the CIS [Commonwealth of Independent States]”.

It was also reported that Senator Mark Warner, vice chair of US Senate Intel Committee and Damian Collins MP, chair of the Digital, Culture, Media and Sport select committee inquiry into “fake news”, met in Washington on or about 16 July 2018 to discuss Russian interference in both British and American democratic processes during an Atlantic Council meeting.

UK Information Commissioner’s Office (ICO), media release, 10 July 2018:

Information Commissioner Elizabeth Denham has today published a detailed update of her office’s investigation into the use of data analytics in political campaigns.
In March 2017, the ICO began looking into whether personal data had been misused by campaigns on both sides of the referendum on membership of the EU.

In May it launched an investigation that included political parties, data analytics companies and major social media platforms.

Today’s progress report gives details of some of the organisations and individuals under investigation, as well as enforcement actions so far.

This includes the ICO’s intention to fine Facebook a maximum £500,000 for two breaches of the Data Protection Act 1998.

Facebook, with Cambridge Analytica, has been the focus of the investigation since February when evidence emerged that an app had been used to harvest the data of 50 million Facebook users across the world. This is now estimated at 87 million.
The ICO’s investigation concluded that Facebook contravened the law by failing to safeguard people’s information. It also found that the company failed to be transparent about how people’s data was harvested by others.
Facebook has a chance to respond to the Commissioner’s Notice of Intent, after which a final decision will be made.

Other regulatory action set out in the report comprises:

warning letters to 11 political parties and notices compelling them to agree to audits of their data protection practices;

an Enforcement Notice for SCL Elections Ltd to compel it to deal properly with a subject access request from Professor David Carroll;

a criminal prosecution for SCL Elections Ltd for failing to properly deal with the ICO’s Enforcement Notice;

an Enforcement Notice for Aggregate IQ to stop processing retained data belonging to UK citizens;

a Notice of Intent to take regulatory action against data broker Emma’s Diary (Lifecycle Marketing (Mother and Baby) Ltd); and
audits of the main credit reference companies and Cambridge University Psychometric Centre.

Information Commissioner Elizabeth Denham said:
“We are at a crossroads. Trust and confidence in the integrity of our democratic processes risk being disrupted because the average voter has little idea of what is going on behind the scenes.

“New technologies that use data analytics to micro-target people give campaign groups the ability to connect with individual voters. But this cannot be at the expense of transparency, fairness and compliance with the law.

She added:
“Fines and prosecutions punish the bad actors, but my real goal is to effect change and restore trust and confidence in our democratic system.”

A second, partner report, titled Democracy Disrupted? Personal information and political influence, sets out findings and recommendations arising out of the 14-month investigation.

Among the ten recommendations is a call for the Government to introduce a statutory Code of Practice for the use of personal data in political campaigns.

Ms Denham has also called for an ethical pause to allow Government, Parliament, regulators, political parties, online platforms and the public to reflect on their responsibilities in the era of big data before there is a greater expansion in the use of new technologies.

She said:
“People cannot have control over their own data if they don’t know or understand how it is being used. That’s why greater and genuine transparency about the use of data analytics is vital.”

In addition, the ICO commissioned research from the Centre for the Analysis of Social Media at the independent thinktank DEMOS. Its report, also published today, examines current and emerging trends in how data is used in political campaigns, how use of technology is changing and how it may evolve in the next two to five years. 

The investigation, one of the largest of its kind by a Data Protection Authority, remains ongoing. The 40-strong investigation team is pursuing active lines of enquiry and reviewing a considerable amount of material retrieved from servers and equipment.

The interim progress report has been produced to inform the work of the DCMS’s Select Committee into Fake News.

The next phase of the ICO’s work is expected to be concluded by the end of October 2018.

The Washington Post, 28 June 2018:

BRISTOL, England — On Aug. 19, 2016, Arron Banks, a wealthy British businessman, sat down at the palatial residence of the Russian ambassador to London for a lunch of wild halibut and Belevskaya pastila apple sweets accompanied by Russian white wine.

Banks had just scored a huge win. From relative obscurity, he had become the largest political donor in British history by pouring millions into Brexit, the campaign to disentangle the United Kingdom from the European Union that had earned a jaw-dropping victory at the polls two months earlier.

Now he had something else that bolstered his standing as he sat down with his new Russian friend, Ambassador Alexander Yakovenko: his team’s deepening ties to Donald Trump’s insurgent presidential bid in the United States. A major Brexit supporter, Stephen K. Bannon, had just been installed as chief executive of Trump’s campaign. And Banks and his fellow Brexiteers had been invited to attend a fundraiser with Trump in Mississippi.

Less than a week after the meeting with the Russian envoy, Banks and firebrand Brexit politician Nigel Farage — by then a cult hero among some anti-establishment Trump supporters — were huddling privately with the Republican nominee in Jackson, Miss., where Farage wowed a foot-stomping crowd at a Trump rally.
Banks’s journey from a lavish meal with a Russian diplomat in London to the raucous heart of Trump country was part of an unusual intercontinental charm offensive by the wealthy British donor and his associates, a hard-partying lot who dubbed themselves the “Bad Boys of Brexit.” Their efforts to simultaneously cultivate ties to Russian officials and Trump’s campaign have captured the interest of investigators in the United Kingdom and the United States, including special counsel Robert S. Mueller III.

Vice News, 11 June 2018:

Yakovenko is already on the radar of special counsel Robert Mueller, who is investigating Russian interference in the U.S. presidential election, after he was named in the indictment of ex-Trump campaign aide George Papadopoulos….

Banks, along with close friend and former Ukip leader Nigel Farage, was among the very first overseas political figures to meet Trump after his surprise victory in November 2016.

It also emerged over the weekend that Banks passed contact information for Trump’s transition team to the Russians.

Wednesday, 11 July 2018

Former head of Australia's Border Force is still under investigation for corruption


It appears that Minister for Immigration and Border Protection, Minister for Home Affairs and Liberal MP for Dickson Peter Dutton's captain's pick is still under investigation.

ABC News, 4 July 2018:

The former head of Australia's Border Force is still under investigation for corruption despite being sacked more than three months ago.

Roman Quaedvlieg was one of Australia's highest-paid public servants until his unprecedented dismissal for helping his girlfriend land a job with the agency.

The termination came after inquiries were launched by the Prime Minister's Department and the Australian Commission for Law Enforcement Integrity (ACLEI).

The ABC has now learned the ACLEI probe is still underway — more than a year after the Commonwealth watchdog was told of Mr Quaedvlieg's alleged misconduct.

"I've never been interviewed by anyone, including ACLEI," Mr Quaedvlieg said in a statement.

"This is the first I've heard the ACLEI investigation is still active."

Fall of Roman's empire:
May 2017: Roman Quaedvlieg begins paid leave following complaint
June 2017: Australian Commission for Law Enforcement Integrity (ACLEI) notified
August 2017: ACLEI provides update to Immigration Department boss
August 2017: PM's Department boss asked whether grounds exist to sack Quaedvlieg
February 2018: Attorney-General receives PM's Department report
March 15, 2018: Governor-General terminates Quaedvlieg's employment

The inaugural Border Force commissioner said he was considering his legal options after being removed from the $600,000-a-year role.

Mr Quaedvlieg has previously denied any wrongdoing and last year expressed frustration at the time taken for investigations to be concluded.

The commission said it received a referral from Immigration Department secretary Michael Pezzullo mid-last year.

"The Integrity Commissioner received a notification in relation to Mr Quaedvlieg … in June 2017 and commenced a corruption investigation shortly thereafter," a spokesman said.

"At this time the investigation remains ongoing."

ACLEI has oversight of about 20,000 Commonwealth law enforcement officials, including members of the Australian Federal Police and the Home Affairs Department.
The agency had 47 full-time-equivalent staff during the 2016-17 financial year.

Monday, 4 June 2018

Peter Chapman's stint as editor of The Queensland Times is catching up with him


Peter Chapman first swam into public view as a Channel 10 sports editor, commentator and presenter in the late 1980s.

He left after ten years to work for Canberra Raiders NRL Club and the New Zealand Breakers basketball team.

He re-entered journalism in 2006 and stayed with APN News and Media for ten and a half years as editor first of The Daily Examiner, then the Fraser Coast Chronicle and finally The Queensland Times.

He quietly slipped out of journalism again in November 2016 when he went to work for Leda Holdings, a property development and investment company, as its Marketing and Media Manager. Presumably the new owner of APN's regional newspapers, News Corp, or Peter himself thought they would not be a good match.

Unfortunately for Peter his abrasive style as an editor meant that his journalistic 'sins' rarely go unnoticed and, on 28 May 2018 ABC TV "Media Watch" program finally featured his time covering Ipswich politics in QueenslandWith the program's presenter discussing the latest revelations of corruption in Queensland, and how a huge local story mysteriously went missing in the media.

As the Clarence Valley, home to The Daily Examiner, was never enamoured with his divisive, sometimes biased reporting, locals were quick to point out that "Media Watch" was doing a third segment on Peter.

Who could forget the first two, Peter as the the leaker in 1999 or as the sporting chauvanist in 2009

These are some of the program snapshots that were sent to me with the comment - "It was classic Chapman"!





How a journalist working with him at the time assesed the situation.


On Wednesday 2 May 2018 the Queensland Crime and Corruption Commission (CCC) charged Ipswich Mayor Antoniolli, former mayor Paul Pisasale, two council CEOs and eight other council staff with sixty-six charges of corruption.

Peter Chapman is probably still wiping the egg off his face.

Thursday, 31 May 2018

Liberals continue to behave badly in 2018 – Part Six, Cash subpoena for 1 August


The Guardian: Michaelia Cash giving evidence before Senate educaion & employment committee, Parlview video, Feb 2018





The Age, 30 May 2018:

The Federal Court has ordered embattled Jobs Minister Michaelia Cash to give evidence in the court case over last year's raids on the headquarters of the Australian Workers Union.

Court documents seen by Fairfax Media show a subpoena has been issued for Senator Cash to attend court on August 1.

The minister has been under pressure over her role in a federal police raid conducted on AWU offices in Melbourne in October, details of which were leaked to the media in advance.

Senator Cash's former staffer David de Garis - who has also been ordered to give evidence - took the blame for tipping off journalists and subsequently resigned.

Senator Cash has said she was unaware of the tip-offs. She was due to appear at a Senate estimates hearing on Wednesday but sent the assistant minister Zed Seselja instead….

She previously failed in an attempt to stop subpoenas for communications between her office and the ROC about the raids….

Mr Turnbull has so far stood by his minister.

Friday, 18 May 2018

The people attracted to a career in Tzar Peter’s federal super ministry.....



Brisbane Times, 16 May 2018:

The information chief at Peter Dutton’s new Home Affairs super ministry allegedly ordered the deletion of a government record relevant to a request under freedom of information laws when he was a senior executive at NSW’s transport agency.

Tim Catley, who began his high-ranking role at Home Affairs in February, is accused of directing staff at Transport for NSW to delete government information in 2016, in witness statements given during an investigation by the state’s Information and Privacy Commission.

Mr Catley vehemently denies he asked anyone to delete government records. “The allegation that I asked anyone to delete an email is not true and it is not technologically possible to do that anyway [at the transport agency]. Professionally and ethically I wouldn’t do anything like that,” he told the Herald.

Following a referral from the Independent Commission Against Corruption, the state’s Information Commission launched an investigation behind closed doors into the deletion of a record at Transport for NSW to avoid public disclosure 18 months ago.

During that investigation, the Information Commission was told of a culture inside Transport for NSW of suppressing bad news, meaning that higher levels within the department were not told of potential cost blowouts on projects.

The investigation also heard that warnings about this culture of suppression were relayed to the then secretary of the department, Tim Reardon, now NSW’s top public servant as head of the Department of Premier and Cabinet.

A preliminary report on the Information Commission’s investigation, seen by the Herald, found that a Transport for NSW executive issued directions to delete government information relevant to a request under the Government Information (Public Access) Act (GIPA), the state’s freedom of information legislation.

“The investigation has found that the executive directed the deletion of records that were germane to a GIPA access application and that staff acted on that direction,” the report, by Information and Privacy commissioner Elizabeth Tydd, said.

Ms Tydd’s report did not name Mr Catley as the executive who directed the deletion. But the witness statements to the commission assert that it was Mr Catley who gave the direction.

Despite her finding about the direction, Ms Tydd determined there were no grounds to refer the matter to the Director of Public Prosecutions or the Attorney-General….

According to Ms Tydd’s analysis, if the official who destroys the information is unaware the information is subject to a freedom-of-information request, the person who directed them to delete that information did not commit an offence.

And because other staff at Transport for NSW later ensured the deleted document was retrieved, the commissioner found the government agency had not failed in its duty.

According to evidence given during the investigation, Mr Catley raised concerns at a meeting in July 2016 about emails that detailed a cost blowout in the $425 million “Next Generation Infrastructure Services” project. An application for information about the IT project sought under the GIPA Act was also discussed at the meeting.

That same month, Mr Catley allegedly directed a more junior staff member to delete an email about the exit from Transport for NSW of a manager who had a senior role overseeing the IT project, according to witness statements given to the Information Commission.
At the time, Mr Catley had responsibility for technology at Transport for NSW as its chief information officer, a role he had held since 2012.
Early this year, a “confidential” report by a consulting firm commissioned by Transport for NSW revealed a concerning picture of the state of IT at the state’s transport agencies.......

Saturday, 12 May 2018

Quotes of the Week


“Meeting the narrow test of legality is not a licence to be a bastard”  [Journalist Peter Hartcher writing  about corporations in The Canberra Times, 5 May 2018]


“budget's forecasts and projections, prepared by that well-known Italian economist, Rosie Scenario”  [Economics editor Ross Gittens writing in The Sydney Morning Herald about Federal Budget 2018-19, 8 May 2018]

Saturday, 28 April 2018

Quotes of the Week



“He’s nothing but a pre-Fitzgerald corruption inquiry Queensland walloper”  [An anonymous Liberal MP speaking of Australian Minister for Immigration and Border Protection Peter Dutton, quoted in The Saturday Paper by journalist Paul Bongiorno, 21 April 2018]


“The Liberals complaining that ASIC is sleep is rich considering who administered the fucking anaesthetic.”  [Journalist Richard Chirgwin, Twitter, 23 April 2018]


“At the same time, returns to the AEC show that these same corporations paid a total of $21,733,192 in political donations to political parties with Westpac standing out with donations totalling of nearly $12 million during the 2014-15 financial year alone.“  [Campaigner Rosie Williams, in “What can open data tell us about Australia’s major banks?”, 20 April 2018]

Wednesday, 25 April 2018

As the federal govenment burns are Turnbull and Co. just tinkering at the edges of banking and finance regulations or are they seriously committed to reform?



Way back in October 2016 the Australian Securities and Investments Commission (ASIC) began an Enforcement Review which examined the adequacy of legislation dealing with corporations, financial services, credit and insurance, with regard to serious contraventions in the financial sector, including fraud and criminal activity.

0n 18 December 2017 ASIC handed its Enforcement Review Report to the Turnbull Government.

It was probably no accident that four days earlier the same government ceased its sustained opposition to a highest level inquiry and created the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. 

With the extent of bank money laundering becoming an issue and the review report on its doorstep there was nowhere else to turn, given the average voter would not have been receptive to the argument that the big banks were historically a protected species because of their generous political donations.

In April 2018 in the midst Royal Commission revelations concerning a host of bank and financial system abuses the Turnbull Government finally released its response to the ASIC review report.

This response "agrees" with or gives "in principle agreement" to all 50 recommendations but has placed 20 recommendations on the backburner.

Knowing that ASIC’s investigative abilities has been crippled by funding/staff cuts, that entities with annual profits in the billions just seem to shrug off large corporate fines, often indemnify executives in relation to individual fines and are able to play the legal system so that executives rarely see the inside of a prison, on 20 April the Turnbull Government via the Minister for Revenue and Financial Services revealed that by legislative amendments it will implement the potential for larger individual and corporate fines and double potential maximum prison sentences:

The Turnbull Government is strengthening criminal and civil penalties for corporate misconduct and boosting the powers of the Australian Securities and Investments Commission (ASIC) to protect Australian consumers from corporate and financial misconduct.

These stronger new penalties will ensure that those who do the wrong thing will receive appropriate punishment.

These reforms represent the most significant increases to the maximum civil penalties, in some instances, in more than twenty years. They bring Australia's penalties into closer alignment with leading international jurisdictions, and ensure our penalties are a credible deterrent to unacceptable misconduct.

The Government will increase and harmonise penalties for the most serious criminal offences under the Corporations Act to a maximum of:

For individuals: (i) 10 years' imprisonment; and/or (ii) the larger of $945,000 OR three times the benefits;

For corporations: (i) the larger of $9.45 million OR (ii) three times benefits OR 10% of annual turnover.

The Government will expand the range of contraventions subject to civil penalties, and also increase the maximum civil penalty amounts that can be imposed by courts, to the maximum of:

the greater of $1.05 million (for individuals, from $200,000) and $10.5 million (for corporations, from $1 million); or

three times the benefit gained or loss avoided; or

10% of the annual turnover (for corporations).

In addition, ASIC will be able to seek additional remedies to strip wrongdoers of profits illegally obtained, or losses avoided from contraventions resulting in civil penalty proceedings.

ASIC's powers will also be significantly increased through:

expanding their ability to ban individuals from performing any role in a financial services company where they are found to be unfit, improper, or incompetent;

strengthening their power to refuse, revoke or cancel financial services and credit licences where the licensee is not fit or proper; and

boosting ASIC's tools to investigate and prosecute serious offences by harmonising their search warrant powers to provide them with greater flexibility to use seized materials, and granting ASIC access to telecommunications intercept material.

The Turnbull Government is committed to ensuring ASIC is armed with greater powers to effectively deter, prosecute, and punish those who do the wrong thing, to improve community confidence and outcomes for consumers and investors in the financial services and corporate sector.

These reforms come on top of strong Government action to reform our financial services sector to better protect Australian consumers over a number of years.
The Government has already provided $127 million in additional funding to ASIC to bolster its investigative and surveillance capabilities; implemented an industry funding model for ASIC to give it secure funding; appointed a new chairman for ASIC, Mr James Shipton, and announced a new second Deputy Commissioner with an enforcement focus, Mr Daniel Crennan QC; established a new standards setting body for financial advisers; and established a new one stop shop for consumer complaints which is free for consumers, binding on financial institutions and can order compensation where appropriate.

Today's reforms to ASIC's powers and penalties follow recommendations made by the ASIC Enforcement Review Taskforce (The Taskforce). The Taskforce was established in October 2016 to fulfil the Government's commitment to review the adequacy of ASIC's enforcement regime in response to the Murray Financial System Inquiry, and provided its report to Government in December 2017.

The Government has agreed, or agreed in principle, to all 50 of the Taskforce recommendations and will prioritise the implementation of 30 of the recommendations.

The remaining 20 recommendations relate to self-reporting of breaches, industry codes and ASIC's directions powers, which will be considered alongside the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

The Government thanks all the members of the Taskforce, including the Panel of Experts, Treasury, ASIC, Attorney-General's Department, Commonwealth Director of Public Prosecutions, as well as all stakeholders who participated in the consultation of the various position papers put forward by the Taskforce.

The Government's full response to the Taskforce Report can be found on the Treasury website.


Friday, 20 April 2018

Turnbull Government will ignore this call to extend Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry at its own electoral peril


Remember When Australian Prime Minister and former merchant banker Malcolm Bligh Turnbull ruled out a bankig royal commission?

Telling the nation; "I can tell you wehave as a government decided not to have a royal commission, we made thedecision a long time ago, not because we don't believe there is nothing goingon in terms of problems with the banks, it is because we want to take actionright now and we are".

Recall the time and other limits placed on the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry when it was finally established on 14 December 2017? Giving it the power to ignore anything that it wanted to that would otherwise be within its scope. 

Well things did not go entirely to plan for Malcolm and his banker mates.

Because since13 March 2018 the curtain has been drawn back revealing the systemic unethical, deceitful, rapacious, sometimes fraudulent and, in certain instances criminal behaviour, of the financial sector.

National Australia Bank, Westpac, St George, Citibank, ANZ, AMP Insurance and the Commonwealth Bank of Australia, along with their financial services spin-offs, had all come under some degree of scrutiny by mid-April with more hearings still sheduled.

So it comes as no surprise that Fairfax Media is now saying what many are thinking.............

The Age, 18 November 2018:

Evidence to the fledgling financial services royal commission confirms the inquiry, long-resisted by the Coalition government and the banks, was justified and suggests it will lead to rigorous reforms. It also suggests the government’s decision to limit the probe to one year should be reviewed.

A damning admission by a top executive of what was once one of the nation’s most trusted institutions, AMP, about his company repeatedly lying to the corporate regulator about condoned client fraud intensifies concerns about one of the most crucial industries.

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry is only in its third week, but there has been a plethora of testimony to unethical and/or illegal practices including: charging clients for wilfully undelivered services; fraud; manipulating ‘‘independent’’ audit information; selling clients irrelevant insurance and financial products (many of them in-house); failing to declare commissions; refusing to honour insurance contracts; rigging interest rate markets; and failing to make proper checks before granting loans.

The banks long argued the malfeasance was the result of ‘‘a few bad apples’’, a position that became untenable as bountiful evidence, much of it revealed by The Age, implicated the companies’ very culture.....

Thursday, 19 April 2018

None of the financial institutions are coming away from this Royal Commission covered in glory


The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was established on 14 December 2017, is due to hand down an interim report no later than 30 September 2018 followed by a final report by 1 February 2019.

As of 13 April 2018 the royal commission has received 3,433 public submissions - 69% of these were Banking, 8% Superannuation 8% and 7% Financial Advice.

Round 2 public hearings finish on 27 April 2018.

View the live webcast or previous hearings.

Yesterday was the Commonwealth Bank of Australia's turn to reluctantly admit systemic fraud ....

The Guardian18 April 2018:

Counsel assisting the royal commission, Mark Costello, asked Linda Elkins, from CBA’s wealth management arm Colonial First State, to confirm CBA’s poor record of charging fees for no service.

“It would be the gold medallist if [the corporate regulator] was handing out medals for fees for no service, wouldn’t it?” Costello asked.

Elkins replied: “Yes.”

The commission was told that from July 2007 to June 2015 clients of CBA’s Commonwealth Financial Planning, BW Financial Planning and Count Financial businesses were routinely charged ongoing fees for financial advice where no advice services were provided.

CBA has had to refund $118.5m to customers – more than half the $219m in compensation paid by the big four banks and AMP over the past decade – to more than 310,000 financial advice customers.

ABC News, 18 April 2018:

Michael Hodge QC observes that Commonwealth Financial Planning has had a 100 per cent increase in clients over the past decade but a 25 per cent drop in the number of advisers.

He asks CBA's Marianne Perkovic whether the bank had any concerns that clients were not receiving adequate attention because of the decline in advisers, while client numbers doubled.

This is in the context of ASIC's concern that some firms were taking on too many clients for the number of planners. 

Ms Perkovic struggles to provide a clear answer.......

After disputing the meaning to be attributed to internal memos between the bank's senior managers in early 2012, Ms Perkovic eventually had to admit that a Deloitte report handed to CBA in July 2012 revealed systemic problems in ensuring that customers weren't being charged for financial advice they did not receive.

Deloitte had found that at least $700,000 in ongoing service fees were being charged to more than 1,050 clients that were allocated to more than 50 inactive financial planners who had left the business before 2012.

It appears that Ms Perkovic was finally ground down by relentless questioning from Michael Hodge QC, warnings from Commissioner Kenneth Hayne and the irrefutable evidence of the Deloitte report.