Merry Christmas to Peter Wilson. When it was suggested that Peter Wilson should be independent of the old board so that we can have a fresh start Peter responded with "That's your issue". Summary of the meeting here: viewtopic.php?f=23&t=594
A good summary of where we are up to by Joe Aston of the AFR, linked to from here: viewtopic.php?f=5&p=4137#p4137
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Conflicts of Interest at CPA Australia

Issues at CPA Australia needing investigation and/or review.
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Brett Stevenson
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Conflicts of Interest at CPA Australia

Post by Brett Stevenson » Tue Apr 04, 2017 9:27 am

We need to have an independent inquiry into possible conflicts of interest that may exist at CPA Australia in relation to not only staff and board of directors but also service providers.
The NBL sponsorship where we have handed over $736,000 of our money to the NBL, and Graeme Wade being Chairman of the NBL, is one that requires a closer scrutiny.
Are there any other service providers who have close connections at board or representative council level?

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Brett Stevenson
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AFR article 5th April 2017 Petty and wife

Post by Brett Stevenson » Wed Apr 05, 2017 3:49 pm

Have a read of todays article in the AFR to get a hint of the possible conflicts of interest that exist at CPA Australia.
One cannot say it is wrong but it certainly is cause for a note of concern given that Richard Petty has been on the Board ever since Alex Malley has been President then CEO of CPA Australia. Considerably longer than any of the maximum recommended time frames, even by our own constitution (normally nine year maximum) but in the specific cases of Petty, Wade and Ryan there were special amendments made to enable them to serve much longer.
Petty has also been on the powerful Nomination and Remuneration Committee the whole time (apart from 2016) and for 6 of those years (2010-2015) as Chairman.
So when we see the involvement of his wife also at Divisional Council and Committee level it certainly does raise the bar of our need to be cautious to ensure probity and that no conflicts of interest arise. My first question relates to how many international flights each year were paid for by CPA Australia for both Petty and his wife, at what class, and for what purpose. My second question is did anyone at board level raise this as an issue that has ethical questions of conflict of interest.
All those articles by Dr Eva Tsahuridu on ethics in In The Black would perhaps have much to say on this and other governance issues that these matters bring to the fore. Writing an article is a piece of cake but actually implementing it is a wee bit harder and I question whether CPA Australia'a talk on these matters is a little stronger than their walk.
Perhaps some members might like to peruse her articles to see where there has been more talk than walk on these ethical matters.
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Re: Conflicts of Interest at CPA Australia

Post by nakedadmin » Wed Apr 05, 2017 7:25 pm

So did CPAs that voted Petty's wife onto the Divisional Council know that it was Petty's wife? AFR suggests they did not disclose that and says they did not mention it in that In the Black article. Seems to be a massive omission as they keep telling use we members control the Representative Council because we have a 1 vote majority. What if that one vote majority does not actually exist?

Also I think the AFR has not picked up on the fact that the Representative Council can only vote for Directors by following the procedure set by Directors. This procedure gives Directors virtual full control of the ballot paper. You can't vote for someone not on the ballot paper and you can't stop the vote, game over.
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R2D2
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Re: Conflicts of Interest at CPA Australia

Post by R2D2 » Thu Apr 06, 2017 8:26 pm

Alex Malley reflects on the limitations of rules and standards -

"While rules and standards are important they do not guarantee ethical behaviour nor promote moral deliberation that leads to ethical excellence. "

https://www.intheblack.com/articles/201 ... profession

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Brett Stevenson
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Re: Conflicts of Interest - Klauzner/Petty

Post by Brett Stevenson » Fri Apr 07, 2017 8:09 am

Here is the article from In The Black on Richard Petty's wife.
Although you can see from the article that this fact was obviously hidden from the readers by identifying "her husband, who also works in the finance industry.." just as that. Little were the readers to know that her husband is Richard Petty, long serving Director at CPA Australia, Chairman of the powerful Nominations and Remuneration Committee, director on CPA Australia Advice, past President of CPA Australia.
This is all written in the CPA Australia magazine.
I wonder why they didn't want to mention that obvious fact, and why they have included his wife in the magazine. It's all about self promotion for these people. And all at our expense.
Hardly want to do any obvious self promotion of possible conflicts of interest eh?
Can we expect an article on Graeme Wade in future editions, or perhaps one of the other directors, or perhaps their spouses/partners, or children. CPA Australia is a master in self promotion of these so-called leaders, all under the guise of promoting CPA Australia.
Have a look at the promotion of The Naked CEO in the lights of some overseas city, perhaps NY, Tokyo, London, Vladivostok (no, not Valdivostok, they don't have any comfortable 5 star accommodation there, and the only flights in are economy, fancy not being able to fly first class).
No CPA logo at all in sight. But of course that is the subtle marketing strategy - show our leaders face, and people will automatically think CPA. It is so obvious, why can't the members of CPA understand the obvious connection.
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Re: Conflicts of Interest at CPA Australia

Post by nakedadmin » Fri Apr 07, 2017 8:41 am

Given CPA Australia maintains that management is accountable to members because members votes control divisional councils and therefore the representative council it's a fairly significant omission and looks pretty deliberate considering the actual reference to the husbands profession. It's kind of strange to see the reference to the husband's profession anyway but if you were going to mention it, why not just say, "her husband, who is a CPA Director".
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Brett Stevenson
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NBL Sponsorship and Warning to the current board.

Post by Brett Stevenson » Sun Apr 09, 2017 10:48 am

I think this (NBL Sponsorship) will be one of the first things we will be calling for an investigation into.
How possibly can the board have approved a gift of $736,000 to the NBL when the immediate past president and current long serving director of CPA Australia Graeme Wade is also Chairman of the NBL?

Whoever did the due diligence on this to determine it was both at commercial arms length and that it was an appropriate expenditure of $736,000 will need to be given a grilling. This is disgraceful.

When the board and governance are refreshed at CPA Australia we shall be calling for a 'royal commission' into deals like this.
Ditto for international travel expenditure by board members of CPA Australia.

CPA Australia may have a large bank balance but that does not mean it can be frittered away on inappropriate expenditure.
I suggest the current board, and past board members from the last decade should prepare themselves for an inquiry into some of these matters, and I would encourage the current board to not dig the hole any deeper. Remember your responsibility is to the organisation and the members, not to the management and past decisions.
You may be told none of this will hit the light of day. Well I suggest otherwise and we shall do all we can to shine a very bright light on CPA Australia expenditure over the last decade to ensure all the details are exposed.

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Re: NBL Sponsorship and Warning to the current board.

Post by sjc431 » Thu Jun 15, 2017 11:39 am

Brett Stevenson wrote:
Sun Apr 09, 2017 10:48 am
I think this (NBL Sponsorship) will be one of the first things we will be calling for an investigation into.
How possibly can the board have approved a gift of $736,000 to the NBL when the immediate past president and current long serving director of CPA Australia Graeme Wade is also Chairman of the NBL?

Whoever did the due diligence on this to determine it was both at commercial arms length and that it was an appropriate expenditure of $736,000 will need to be given a grilling. This is disgraceful.

When the board and governance are refreshed at CPA Australia we shall be calling for a 'royal commission' into deals like this.
Ditto for international travel expenditure by board members of CPA Australia.

CPA Australia may have a large bank balance but that does not mean it can be frittered away on inappropriate expenditure.
I suggest the current board, and past board members from the last decade should prepare themselves for an inquiry into some of these matters, and I would encourage the current board to not dig the hole any deeper. Remember your responsibility is to the organisation and the members, not to the management and past decisions.
You may be told none of this will hit the light of day. Well I suggest otherwise and we shall do all we can to shine a very bright light on CPA Australia expenditure over the last decade to ensure all the details are exposed.
Yes I agree Brett, it all needs to be aired very publicly, the organisation must expose all the skeletons in its closet before it can even think about moving on

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