RBA Dumps 50% Stake in Controversial Subsidiary Securency for $65M
By Vittorio Hernandez | February 13, 2013 9:39 AM EST
Even if the subsidiary of the Reserve Bank of Australia (RBA), Securency, is figuratively and literally making money for the RBA, the central bank is dumping half of its share in the troubled company for $65 million.
While the RBA said the sale of its interest in the banknote printing venture to Innovia Films, a British film maker, is in line with its broad intent to exit from the project once Securency becomes established as a viable long-term supplier in the international market, an independent review placed doubts on the RBA's proper oversight over the firm.
With the sale, the RBA would earn $11 million more since a 2011 valuation estimated Securency's worth at $54 million.
While the RBA would dispose of half its stake in Securency, it would be the majority owners of another subsidiary, Note Printing Australia but would keep supply contracts with Securency.
Cameron Ralph, who headed the independent panel that reviewed the two subsidiaries amid allegations of corruption among the agents of the two companies to overseas officials to gain contracts, said the RBA could have done more oversight on the activities of the two central bank subsidiaries.
Although RBA Governor Glenn Stevens and former Deputy Governor Ric Battelino, who were implicated in the anomaly, denied wrongdoing, eight officials from Securency and NPA are facing charges over corruption involving contracts to print banknotes for Indonesia, Malaysia, Vietnam and Nepal.
Following the RBA announcement of the sale of its stake in Securency, former Opposition leader and RBA economist pushed for a Royal Commission investigation on the corruption charge.
To contact the editor, e-mail:
Most Popular Slideshows
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- NFL Thursday Recap - Denver Broncos 35, San Diego Chargers 21: Peyton Manning Has 3 TDs In Easy Win [PHOTOS]
- 2014 MLB World Series Game 3: Kansas City Royals 3, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Tesco Facing Crisis After Chairman Quits Citing Accounting Scandal In The Retail Giant
- #Snapgate: iPad Air 2 Breaks While Undergoing Bend Test
- Australian Federal Court Fines Reebok $350,000 & Orders Refunds For Shoe Endorsed By Miranda Kerr That Claims Unproven Health Benefits
- Perth Call Centre Staff Bad In English And Not Philippine And Indian Counterparts, Telstra Boss Says
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- Verizon Motorola Droid Turbo Leaked Live Images Surfaces, Scheduled To Get Unveiled On Oct 28
- Update HTC One M7 with LG G2 with Android 4.4.2 as Sprint OTA: Fixes and Installation
- U.S. Targets Buyers of ISIS Oil, Threatens Sanctions
- ISIS Syria Airstrike Bombing Has Killed 550 People, Civilians Included
- Russia Blocking OSCE Monitoring Of Its Border With Ukraine
- Russia Shifts Blame On US For Ukraine Crisis, Putin Accuses West of 'Remaking World'