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
If you are new to this website read the story so far: viewtopic.php?t=321#p1793
Check out some of the AFR articles, too many to list and check out some of the ABC reports: http://www.afr.com/business/accounting/ ... 215-h055ej http://www.afr.com/business/accounting/ ... 211-h02x1d http://www.abc.net.au/news/programs/the ... s,/8626662
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AFR 25th Jan 2018 Summary of the CPA Fiasco

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Brett Stevenson
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AFR 25th Jan 2018 Summary of the CPA Fiasco

Post by Brett Stevenson » Thu Jan 25, 2018 3:32 pm

Well, here is a pretty good summary of the CPA fiasco by Joe Aston.
It's a damning indictment.
A few things stand out to me
1. No one has been recommended to be held accountable by the Independent Review Panel's Final Report.
In effect all the leadership over the years get off scot free, and the board just walk away (with a replacement board which shows it has many of the same distinctive traits of Corporate Governance - CPA Style).
Quite amazing. I'm sure they will be all well remunerated, and will press on with the soft recommendations from the IRP, will have lost of international travel funded by CPA to 'understand' what is happening globally, will not take any sort of legal action against past leaders for possible breaches of their duties, and will of course just keep talking about increased engagement and the involvement of the divisions. And of course the divisions will just keep ranting on about how they will be different, and want to see the governance revised (according to the soft IRP recommendations of course such a 9 years tenures, and a renamed Representative Council and even less voice for the NSW division which has over 40% of the entire membership (but of course will have the same one person vote as say the Tasmanian division with all its members, so it's all very fair at least according to the IRP, and after all they are the eminent experts). You think I am being too negative.
Well, let me ask you these questions?
i. Have you heard any comments from any divisional councillors about weaknesses and failings in the IRP Final Report for no-one being recommended to be held accountable?
No, me neither.
ii. Have you read anything in our purportedly monthly professional magazine In The Black about the fiasco in 2017 at CPA Australia? Can you imagine any other professional organisation allowing such censure in their professional magazine when the CEO is sacked, the entire board replaced and all the dramatic exposures of last year are confirmed by an independent review? I think not. But we are talking about CPA Australia here.

2. The involvement of Tim Youngberry (yes the purported knight in shining white armour who came onto the board when 7 directors resigned in 2017 to 'save the day') way back when this all began. Let me quote
The previous year, less than two months after leaving Macquarie, Malley attended a meeting with Petty, Wade, Egan, Jeff Hughes and ACT councillor Tim Youngberry, to sign off on wholesale reforms to the CPA constitution.
It just confirms in my mind that what they say and what they do are poles apart, and that 'we have been taken for a ride'.

3. Read the article and just think why didn't the IRP touch some of these matters, or deal with some of these issues such as the Macquarie University connections etc?
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The Cyclist
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Re: AFR 25th Jan 2018 Summary of the CPA Fiasco

Post by The Cyclist » Thu Jan 25, 2018 3:45 pm

The final comment sums up for me that deep down nothing has really changed and the rot still remains .
The comeuppance was done, sure, but so was the whitewash.

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Stomper
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Re: AFR 25th Jan 2018 Summary of the CPA Fiasco

Post by Stomper » Sun Jan 28, 2018 3:36 pm

This should be compulsory reading for all CPA members - and should be reprinted in the CPA version of "Der Stürmer" aka "In the Black"

That white collar criminals go unpunished should come as no surprise, just look at these examples....


http://www.smh.com.au/national/former-a ... 0ledc.html

A former army member arrested in Serbia in a major drugs investigation ran a business with his alleged co-accused that went bust with $11.5 million in debts and accusations of illegal conduct.

The company, Mass Steel, collapsed with $11.5 million in debts. A liquidator later said that Arnold’s conduct as the company’s director was so questionable that he should be investigated in the Federal Court and banned from directorships for five years. He was accused of trading while insolvent, engaging in “phoenix” activity and shifting assets to a network of his own companies to avoid paying tax and other liabilities like workers’ entitlements. It appears that no action was taken in the Federal Court.

On a smaller scale…..

http://www.juliusmedia.com/inside-the-1 ... tcp-fraud/

$1million fraud = 250 hours community service.

My favorite charlatans…..

http://www.afr.com/business/former-abc- ... 331-1mc61n

The former chief financial officer of ABC Learning Centres, James Black, has escaped a maximum possible penalty of a five year jail term and fines of up to $22,000, after being let-off with an 18 month suspended sentence and $2000 fine.

In one of the biggest corporate collapses in Australia’s history the Queensland-based ASX-listed childcare provider ABC Learning went bust in November 2008, with creditors in four countries claiming a total of $2.7 billion.

http://www.abc.net.au/news/2016-02-23/a ... cy/7192952

ABC Learning: ASIC probe ends; founder Eddie Groves exits bankruptcy

The corporate watchdog has ended its probe into the collapse of failed childcare company ABC Learning Centres, founded by enigmatic former multimillionaire Eddy Groves.

ASIC said the Commonwealth director of public prosecutions believes there is no reasonable prospect of a conviction for any more criminal charges in the long-running corporate saga.

That means neither Mr Groves, nor his ex-wife and co-founder Le Neve, will face criminal charges over the collapse of the business.

In 2012, charges of breaching his duties as a company director were dropped against Mr Groves after ABC Learning’s former chief executive in Australia, Martin Kemp, was found not guilty on similar charges.

Mr Groves exited bankruptcy earlier this month.

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Brett Stevenson
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Re: AFR 25th Jan 2018 Summary of the CPA Fiasco

Post by Brett Stevenson » Mon Jan 29, 2018 8:03 pm

Yes, I agree Stomper. It should be compulsory reading for us all.
To think our own organisations leadership has behaved just as badly and after a weak Independent Report will probably escape ‘punishment’ as well.
If people robbed a bank from in front of the counter they’d possibly get 5 or 10 years but if you can do it with a white shirt and tie and do it from the head office it seems that a slap on wrist is the maximum. Makes a mockery of many things.
I still am dumbfounded that the IRP made no recommendations on accountability. So much forceminence and well connectedness. As for I’m proud to be a journeyman CPA. Have you noticed how many of our divisional leaders and new board members have spoken up on this in the last two months. Their silence is deafening.
But thanks Stomper your post provides us with the perspective we need.
I wonder if Mr Black from ABC was a CPA?

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Stomper
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Re: AFR 25th Jan 2018 Summary of the CPA Fiasco

Post by Stomper » Mon Jan 29, 2018 10:23 pm

Brett Stevenson wrote:
Mon Jan 29, 2018 8:03 pm
I wonder if Mr Black from ABC was a CPA?
A chartered accountant and former CFO of a high profile, now-collapsed Australian business has had his CAANZ membership cancelled for one year, despite having earlier pleaded guilty to one rolled up count of making available false or misleading information.

https://www.accountantsdaily.com.au/lat ... punishment

Not_A_CPA
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Re: AFR 25th Jan 2018 Summary of the CPA Fiasco

Post by Not_A_CPA » Mon Feb 05, 2018 9:20 am

I read this article a couple of days ago, and question hoping someone can answer.

So CPA paid Nine $4.16 million to air In Conversation. Now during that program paid ads would have been broadcast by Nine. So was it a double-whammy for Nine, $4.16m to show In Conversation plus revenue from the ads? My limited understanding of television is (short of the shopping networks) that shows are purchased by the tv station, not paid for by the show's creator.

JWheldon
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Re: AFR 25th Jan 2018 Summary of the CPA Fiasco

Post by JWheldon » Mon Feb 05, 2018 10:58 am

What about the Alex Malley 2GB radio show.

Who paid for that?

Did CPA Australia pay for this one for the 2017 calendar year?

Is this why Alex Malley kept appearing on the 2GB "Deplorables" for six months, even after he was terminated from CPA Australia?

Is this just like the so called questionable CPA Australia Rabbitohs corporate box cost?

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