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Alleged past professional misconduct of CEO

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jendalitz
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Alleged past professional misconduct of CEO

Post by jendalitz » Mon Apr 03, 2017 2:34 pm

I'm sure I'm not the only one who was appalled by the recent revelations in the media that our CEO, Alex Malley, abruptly left his past role as Associate Professor at Macquarie Uni under a cloud of alleged professional misconduct.

If you haven't read it, the full link to the article is below, in a nutshell, here's the opening paragraphs:

"CPA Australia chief executive Alex Malley left Macquarie University in 2006 under a confidential settlement after the accounting lecturer was accused of serious misconduct.

The Associate Professor was allowed to resign without any finding of wrongdoing after allegedly directing hundreds of students each year to undertake paid tutorials through his wife's company, without Macquarie's knowledge. He also resigned mid-term (in June 2006) from his staff-elected position on the Council of Macquarie University, its highest governing body. The Council's members included then chancellor Maurice Newman and now-disgraced student union president Victor Ma.

Mr Malley was asked to explain student complaints that he was giving bonus marks in the university's first-year course, Accounting 101, to students who paid to complete private modules via Mrs Malley's website, Edextreme.

If proven, this would have been a prima facie breach of university policy and of the Commonwealth's Higher Education Funding Act, which proscribes auxiliary course-related charges (in addition to published fees) being imposed on students."

Read more: http://www.afr.com/business/accounting/ ... z4d9pcvonU


I have serious concerns about potential negative impacts to our professional brand if this is true. In other words, if it's true that there was a breach of clear policy guidelines as well as conficts of interest with his wife's business interests and his academic role, then what does that say for our organanisation's brand as the umpire of financial recording in this country (and internationally, as we keep being reminded this is now a global business).

If it's true that Malley was serving on our CPA Australia Board at the time, how was he allowed to carry on? Particularly when there were other Macquarie Uni faculty on the board of CPA Australia who must have known what was going on?

And if it's true that all these changes to director executive remuneration were introduced under Malley's reign, is that a further sign of him feathering his own nest like he did at Macquarie Uni via his wife's business that he allegedly referred student to??

I have today sent a message to company secretary, Adam Awty, requesting contact details for our Chairman as I feel this is not an appropriate issue to discuss directly with our CEO or his direct reports.

Suffice to say I have genuine concerns about the implications of this on our professional standing.

deaneus
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Re: Alleged past professional misconduct of CEO

Post by deaneus » Mon Apr 03, 2017 9:25 pm

Yeah, this is a giant red flag to me.

Directed students to his wife's company for extra marks... if true, that's disgraceful.

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Brett Stevenson
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Re: Alleged past professional misconduct of CEO

Post by Brett Stevenson » Tue Apr 04, 2017 8:32 am

I completely agree.
How can this be treated with virtual silence by the Board.
Tyrone Carlin as President needs to come out and at least say the Board is following up on these allegations. They are very serious. I remind Mt Carlin that his primary responsibility is to the organisation CPA Australia, and the members. It is not to the senior executive.
The board are appointed to provide oversight of the management on our behalf.
If the Board continue to threaten legal action against the AFR reporters for exposing these matters, then one trusts that they have investigated the veracity of the claims because the truth will come out at deposition stage if legal action ensues.
These allegations are astounding if true because one can hardly read The Naked CEO, which we own (for reasons that defy common sense to we members), without the words hypocrisy ringing in the ears. If true we need to revise the book and state it pretty clearly. Or perhaps the best solution would be to trash it totally.
If true these allegations make a mockery of the words like honesty and integrity and transparency.

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Better Call Saul
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Re: Alleged past professional misconduct of CEO

Post by Better Call Saul » Tue Apr 04, 2017 12:57 pm

Correct.

The "Board of Directors Charter" states as follows:-

9.2 Chair and President
The Chair of the Board shall be the President or such other person provided for in Articles 58 and 67 of the Constitution.

Tyrone Carlin is the President and is therefore the Chair.

12. COMMUNICATION
The Chair and the CEO will act as primary spokespersons for the Board in accordance with the Media Spokespersons Policy and Procedures. The Board may delegate authority to designated staff and members to comment on particular matters.

Yes indeed we need the email address and phone number for our Chair/President so we can alert him to some issues directly.

Disgrace 101
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Re: Alleged past professional misconduct of CEO

Post by Disgrace 101 » Thu Apr 20, 2017 7:10 pm

I thought I read that Brett had spoken to Carlin and he was following up on the alleged misconduct of the CEO.

How long does it take the president to ask the CEO a couple of forthright questions?

The appalling behaviour of the Board continues...

JJF
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Re: Alleged past professional misconduct of CEO

Post by JJF » Fri Apr 21, 2017 7:50 am

Was the issue known to the Board and recruitment firm at the time Malley went for the job as CEO?

Surely he would have disclosed that!!! At the very least members should be told the full story.

The Management and Board all seem to have come from or linked to Macquarie University.

Do any of them have any experience actually building and/or running a large company?

Malley certainly doesn't and judging by his shocker of a book (paid for by our funds of course!), has no idea as to what the issues members would like the CPA to argue for.

The head of the CAs has just resigned - could we send them Malley as our gift plus recommend the whole Board as well???

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Brett Stevenson
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Re: Alleged past professional misconduct of CEO

Post by Brett Stevenson » Fri Apr 21, 2017 9:45 am

That is a great and I would have thought pretty obvious question JJF regarding Malleys past. But we need to remember Petty was on the Nominations and Remunerations Committee at the time, and Carlin is the current President/Chairman who should be investigating this on our behalf.
But clearly the bonding this three had at Macquarie University In 2006 and 2007 were pretty strong, and it has been a great source of benefit to them all individually.
In the meantime Carlin says absolutely nothing, and refuses to investigate to provide answers to these very serious allegations. And Malley has just gone completely quiet (apart from his self promoting media appearances at our expense and of complete irrelevance to CPAA).
I am not a gambling person but I will wager that unless Carlin and the board come out pretty soon and answer these serious allegations rather than cover them up with threats, silence and/ or misleading 16 page memos, then it will all blow up in their face.
Just step back and think about the remuneration of Alex Malley, quite apart from his self promoting marketing budget which is limitless as is his international travel budget.
He must be on close to, or even over $2,000,000 in 2016 ( refer previous emails on this). That is factual. Just think of the recently replaced CEO of APO who was paid $5.6m overseeeing a company with a t/o of $6 billion plus with 32,000 plus staff. Thee was an uproar over this.
Compare to Malley who receives $2 million plus salary for an organisation with a t/o of $170 million, and a staff of 500, and with a commercial risk factor of practically zero. That truly is a scandal, and it will be exposed. We have been trying to warn the board but hey just remain silent and continue to treat we members like lemmings and not to ask questions.
And to think they have the gall to say the three senior executives remuneration (at least $3.8 million between three of them) is in line with market benchmarks.
Well, we shall be having a review into that and seeing just what benchmarks and governance rubbish they have received and swallowed to believe that. The institute (CAANZ) pays its CEO $600,000 plus a bonus of possibly $200,000. That is a comparable organisation.
This is a scandal and it will be exposed.
When it is the general public will be asking why did you allow this obvious rort to go on for so long. Just ask anyone about Malleys self promotion, his book and to show, and to think we have accepted that as being promoting CPA members and the profession makes us a laughing stock.
Put yourself in the place of the general public and any possible client and ask what will they be thinking when all this is exposed. We can hardly say we were ignorant of what has been going on.
Many of us are guilty by being disinterested, apathetic and uninvolved while many others have been complicit both actively and by default for failing to speak up when they knew better.
Well this is now the time for us to make a stand and do something about it.
The board needs refreshing, and the administration at Head Office needs a major shakeup.
And above all we need reviews and independent investigations into the rorting that has gone on for too long in our organisation, starting with international travel, personal expense accounts and conflict of interest deals.

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nakedadmin
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Re: Alleged past professional misconduct of CEO

Post by nakedadmin » Fri Apr 21, 2017 11:57 am

Malley became CEO the same day he resigned as Director and the CEO position was never advertised. So when you say went for the job, it's not the way people normally go for a job.

Also in relation to the advertising. In my opinion it's no defence to say it promotes CPA Australia. In fact they should not be promoting CPA Australia and this promotion has just become an empire building exercise. The idea that having 37,000 members in Asia is benefiting Australian members should not be taken for granted. This idea that it's good for us because we are getting some recognition in Singapore or China (18,000 members) is rubbish. Those kind of jobs that Australian members would be applying for would receive recognition based on the Australian experience. It's far more likely the Hong Kong employer would say, why should I employ an Australian CPA at $X when I can get a CPA from China at half that.
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Brett Stevenson
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Re: Alleged past professional misconduct of CEO

Post by Brett Stevenson » Sun Apr 23, 2017 11:24 am

I think you will find there was a 6 month gap between Malley's finishing as both a director and as President (31/3/09), and his commencement as CEO (12/10/09). Refer note 17 of 2009 annual report.

But that does not take away from the circumstances at this time regarding Malley's appointment as CEO - not advertised, allegations of Malleys being 'sacked' from Macquarie Uni and ?'s over appropriate due diligence at CPAA re both his presidency and later CEO appointment, academic colleague from MU day(and very long serving CPAA director, and especially Chairman of the all important Nom and Rem Committee during most of his time at CPAA) Richard Petty replaced Malley as President and was on the Nom and Rem Committee in 2009 when Malley was appointed CEO etc.
The list goes on.

You will need to read Jo Astons AFR columns and also many of the group emails to see the long list of issues involved.
The current President Carlin (also colleague of Richard Petty's and Malleys at the same university - MU - at the same time has said recently in response to a members question about this that they are looking to establish the facts about this given the serious nature of the allegations. Nor reply as yet.

The opening post to this topic summarises well the seriousness of these issues, and they cannot be just glossed over or regarded as unimportant.

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nakedadmin
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Re: Alleged past professional misconduct of CEO

Post by nakedadmin » Sun Apr 23, 2017 2:15 pm

Ok happy to be corrected. Was he working at CPA Australia during that gap? Why was there a gap? It's a bit strange as the appointment is in Oct 2009 and it's in about Oct that the Directors get appointed. You would think you'd quit as Director at the time when they appoint someone to replace you. Was there a replacement Director appointed in April 2009?

Was there a requirement for there to be a 6 month gap before the appointment to CEO? It's a bit suspicious that someone would quit as Director if they did not have other job lined up. Particularly seeing as it is a high paid job that does not require that much time as Tyrone has pointed out.
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Karena
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Re: Alleged past professional misconduct of CEO

Post by Karena » Sat Jun 24, 2017 11:51 pm

Now I am wondering if Alex Malley is associated with any of the CPA exam support courses that provided by "3rd party" companies??????????

slaa4044
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Re: Alleged past professional misconduct of CEO

Post by slaa4044 » Sun Jun 25, 2017 9:25 am

nakedadmin wrote:
Sun Apr 23, 2017 2:15 pm
Ok happy to be corrected. Was he working at CPA Australia during that gap? Why was there a gap? It's a bit strange as the appointment is in Oct 2009 and it's in about Oct that the Directors get appointed. You would think you'd quit as Director at the time when they appoint someone to replace you. Was there a replacement Director appointed in April 2009?

Was there a requirement for there to be a 6 month gap before the appointment to CEO? It's a bit suspicious that someone would quit as Director if they did not have other job lined up. Particularly seeing as it is a high paid job that does not require that much time as Tyrone has pointed out.
I suspect Mr Malley was sunning himself somewhere on the severance payment from Macquarie in those six months. It would have been 'unseemly' and more questions would have been asked at the time without a hiatus between appointment and termination. It's a bit like getting married too quickly after getting a divorce. After all, he would have needed some time to negotiate his ridiculous salary and ensure the right people were on the Board to appoint him without due process. Note his commencement date!!!

Heisenberg
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Re: Alleged past professional misconduct of CEO

Post by Heisenberg » Sun Jun 25, 2017 12:11 pm

Karena wrote:
Sat Jun 24, 2017 11:51 pm
Now I am wondering if Alex Malley is associated with any of the CPA exam support courses that provided by "3rd party" companies??????????
Might be worth conducting a few ASIC company searches.... will cost you $9 a pop but well worth it!

passedfc
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Re: Alleged past professional misconduct of CEO

Post by passedfc » Sun Jun 25, 2017 1:45 pm

there is a lot of forensic follow up to do ... both internally and externally...
Internal... just imagine what this group has racked up on their credit cards...
first class travel ?? 5 star accommodation ?? Junkets.... etc...

deaneus
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Re: Alleged past professional misconduct of CEO

Post by deaneus » Sun Jun 25, 2017 3:21 pm

Karena wrote:
Sat Jun 24, 2017 11:51 pm
Now I am wondering if Alex Malley is associated with any of the CPA exam support courses that provided by "3rd party" companies??????????
It is my understanding that all training provided by CPA Australia is done through a 3rd party company, which is owned by someone on the board but i can't remember

slaa4044
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Re: Alleged past professional misconduct of CEO

Post by slaa4044 » Sun Jun 25, 2017 4:31 pm

PDL Academy. I will see if I can find out who the principals are. Interestingly, they whole website talks about passing exams ... nothing about learning anything!

Looks like they also compete with Universities by having 'foundation' courses.

I wonder if they are subject to the same quality requirements Universities are .....

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The Nude CPA
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Re: Alleged past professional misconduct of CEO

Post by The Nude CPA » Sun Jun 25, 2017 5:21 pm

slaa4044 wrote:
Sun Jun 25, 2017 4:31 pm
PDL Academy. I will see if I can find out who the principals are. Interestingly, they whole website talks about passing exams ... nothing about learning anything!

Looks like they also compete with Universities by having 'foundation' courses.

I wonder if they are subject to the same quality requirements Universities are .....
It looks like PDL is just a tuition provider, not an education provider.

JWheldon
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Re: Alleged past professional misconduct of CEO

Post by JWheldon » Sun Jun 25, 2017 6:34 pm

Look at AFR article about PDL Academy

http://www.afr.com/brand/rear-window/cp ... 531-gwhhzo

PDL is jointly owned by John Corrigan, with Chris and Janet Hudson. In 2014 (and in 2013 for that matter), Corrigan was a member of CPA Australia's Representative Council, whose sole codified role is to elect the board of CPA Australia. In every year from 2007 until 2014, Corrigan was also a member of the NSW Divisional Council, which elects two members of the Representative Council (in the final two years, one of which was himself). In 2007 and 2008, he served on that council with Malley.

For a humble course provider, PDL sure has a complex ownership structure. Corrigan and the Hudsons started with a third partner, William Renwick. Along the way they picked up, then lost, another partner, Khalil Allahwala. Renwick left in 2014. Corrigan's stake is held by his Moorestone Group and Corrigan was previously a director in Moorestone, and in Business Associates Network Pty Ltd, with a Blake Wilson of Wahroonga.

In 2015, the recipients of the University of Sydney's scholarship with CPA Australia for the Global Executive MBA at the University's Business School (a $110,000 18-month course with residential modules in India, the UK and the US) were Lisa Gray and Tony Marks. An executive manager at Animal Health Australia, Marks was, and remains, a member of the Representative Council. Gray, a financial controller in the vendor management office of the NSW Department of Finance, was deputy president of the NSW Divisional Council (the very same Malley and Corrigan came from). She is now its president.

Karena
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Re: Alleged past professional misconduct of CEO

Post by Karena » Sun Jun 25, 2017 9:22 pm

Finally the penny drops for me!! Back in around 2009 I was shocked to learn that my colleague was able to complete an accelerated course at Macquarie University and got exemptions for all the CPA modules, the only thing he needed to complete was the 3 years mentoring program after this 12 months course! Was it a some sort of quid pro quo arrangement between Malley and Macquarie uni?

I also found a youtube video that Malley was a guest speaker at Macquarie University graduation in 2011?! Didn't he get pushed out just a few years before that? (https://www.youtube.com/watch?v=xxl92ps_aw4&t=224s)

I think the exorbitant amount of salary and reckless spending on behalf of CPA members are just the scratch of the surface!!

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The Nude CPA
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Re: Alleged past professional misconduct of CEO

Post by The Nude CPA » Mon Jun 26, 2017 6:27 pm

Karena wrote:
Sun Jun 25, 2017 9:22 pm
Didn't he get pushed out just a few years before that?
Well, yes; but it was done very quietly with no finding of wrongdoing.

And he received a payout then, too, I believe.

So, he obviously had some 'friendlies' in the upper echelons of the university looking out for him then as well.

Seems like he is a very slippery, slimy character; maybe even a conman.

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