Solomon Islands - China intelligence failure : A product of discredited China theories at DFAT and the Office Of National Intelligence?

 by Ganesh Sahathevan

The ABC reported:

In an interview with the ABC, Matthew Wale — who leads the Democratic Party — said he warned Australian officials as early as August that China would likely try to establish a military presence in Solomon Islands.

"I have intimated as much to the Australian High Commissioner and officials that this was in the offing, even as far back as last year — all the indications were there and the Australian government did nothing about it — so I'm extremely disappointed in the Australian government," he said.

That China has been seeking to bring Solomon Islands within its sphere of influence should not surprise anyone. See for example the report from Geoff Wade about Chinese Government operations in Solomon Islands more than 20 years ago: 

Solomon Islands: The names of the 116 ethic Chinese persons who were flown to China by the PRC Government in 2000, following outbreak of violence in Solomon Islands 广东侨办公布从所罗门接回的华侨华人名单

At the Department Of Foreign Affairs And Trade however there has been the view that China was only interested in trade, not expansion of its influence. China's South China Sea expansion did not seem to have had altered that perception.

That view might still be the prevalent view at DFAT, and the Office Of National Intelligence, which determines what intelligence the Prime Minister and Cabinet receive.Like any other department of the civil service established narratives are fiercely defended by their proponents for fear of loss of relevance, and thus career prospects.

It is therefore not unlikely that Matthew Wale's warning from even November 2021 was ignored by DFAT and the ONI, and even if considered, not brought to the the attention of the Prime Minister and Cabinet. 

TO BE READ WITH 

Wednesday, May 6, 2020

Morrison adviser Michelle Chan is not the "the moderate voice on China" needed at this point to advise on national security matters : In her native Malaysia Chan would not have been allowed anywhere near national security and intelligence matters

by Ganesh Sahathevan




One of Scott Morrison's inner circle, his former National Security Adviser Michelle Chan; has been recently promoted deputy secretary in the Office Of National Intelligence. According to Canberra publication The Mandarin:


Michelle Chan


Michelle Chan has been promoted to deputy secretary in the Office of National Intelligence. She has held various senior positions within the Department of Foreign Affairs and Trade, including the prime minister’s senior international advisor, and ambassador roles.


The Australian described Chan as a "moderate voice on China":

Michelle Chan The Prime Minister’s national security adviser As Morrison’s national security adviser, Chan is considered a moderate voice on China, with insiders saying she is a “dove” to Andrew Shearer’s “hawk”. She was most recently deputy director-general of the Office of National Assessments and a former ambassador to Myanmar. She has also had postings to Indonesia, Vietnam and Cambodia.

Chan is regarded an expert on South East Asia, presumably as a result of her being born in Malaysia, and her service in Indonesia, Vietnam and Myanmar.
Additionally her husband Simon Merrifield served first as political counsellor and later deputy high commissioner to Malaysia between 2001-2005. He was later appointed resident ambassador to ASEAN.

Service in South East Asia does not necessarily make one an expert on South East Asia; diplomats are often kept in a cosy bubble by their hosts, and are happy to learn only what they are told, or read in the local government controlled papers. As Mr Merrifield's high commissioner James Wise once told this writer, with regards anything else "I'd rather not know."

It should also be said that had she remained in Malaysia Chan would never have been allowed anywhere near that country's  intelligence and security apparatus, because of her Chinese heritage. Malaysia has had to battle the Communist Party Of China since the 50s, and is not so naive as to disregard racial and communal loyalties. Indeed, in Malaysia Ms Chan's "moderate voice" on China matters would be assumed. 

END 

SEE ALSO 

Aussie Merrifield has passionate ties with Malaysia
NATION


Monday, 26 Sep 200512:00 AM MYT

By PAUL GABRIEL

MAKING MERRY: Merrifield (left) chatting with Wisma Putra principal assistant secretary Abdullah Zawawi Tahir (secondfrom left) and executive member of the Malaysia-Australia Business Council Peter Tan Choon Hoo (right) at the farewellreception for him hosted by Wise (third from left) in Kuala Lumpur last Wednesday.

KUALA LUMPUR: For outgoing Australian Deputy High Commissioner Simon Merrifield, Malaysia was more than just a foreign mission.
Asam laksa, tosai, climate and multiculturalism aside, there were more compelling reasons why Malaysia had been good to him – wife Michelle Chan Su-Wen was born in Petaling Jaya, and the couple’s soon-to-be-born baby was conceived here.

Merrifield, who will head the Staffing Division at the Foreign Ministry in Canberra, had been passionate about Malaysia since his first visit here as a 20-year-old backpacker in 1982.


Merrifield had wanted to stay on in Malaysia and have his first child born here, but decided to pack up on the advice of High Commissioner James Wise, who had wisely told the former to put family first and concentrate on setting up home in the Australian capital.

“He’s been a fantastic boss, and I value his advice. Things are getting very busy at the Australian mission here and it would be difficult having to contend with a newborn as well,” he said after a farewell bash at Wise’s residence in Jalan Langgak Golf last Wednesday.

Merrifield and Chan, who moved to Australia as a young girl, will be reunited at home, and at work, in Canberra; she will also be leaving Indonesia and her position as political and economic head at the Australian mission there.

Posted here in 2001 as political counsellor before being promoted in January last year, Merrifield said he had learnt a lot from Wise and was proud to have served here, in one of Australia's largest foreign missions.

“Besides my Australian colleagues, we also have many first-rate local staff who made my job so much easier.

“There has never been so much happening on the bilateral agenda as now – from education, trade, security to legal cooperation,” said Merrifield who leaves on Friday.

Wise praised his deputy’s resolve, saying: “The mission here will truly miss his services. He’s been outstanding both as a professional, and friend.”

Political counsellor Peter Doyle will replace Merrifield.

TheNation

THE NETWORK OF INFLUENCE

Geoff Chambers, Simon Benson

Geoff Chambers and Simon Benson

1244 words

10 December 2019

The Australian

AUSTLN

Australian

7

English

© 2019 News Limited. All rights reserved.

Geoff Chambers and Simon Benson reveal the national security chiefs, advisers and their enforcers who arehelping the Morrison government protect Australia in a period of heightened tensions

THE BIG 5 MIKE PEZZULLO Department of Home Affairs secretary Started role: December 2017 Remuneration package: Up to $864,580 With Home Affairs one of three key national security departments, alongside Defence and Foreign Affairs, the influence of Pezzullo, pictured right, is significant. His power has grown immensely under the Coalition government despite historic links with Labor, having previously worked with Gareth Evans and Kim Beazley. In addition to border protection, counter-terrorism, cyber security, transnational serious and organised crime and crisis co-ordination, Pezzullo is a leading figure in the response to foreign interference and influence.

MIKE BURGESS Australian Security Intelligence Organisation director-general Started role: September 2019 Remuneration package: $665,070 Burgess is one of the new-guard national security chiefs after being appointed by Scott Morrison as ASIO chief in August, replacing Duncan Lewis, and putting the domestic spy agency on a more aggressive footing. He is now considered the most influential security agency chief, who also holds the title of director-general for national security. He is a former head of the Australian Signals Directorate and sat on the government’s naval shipbuilding advisory board. Burgess started at the Defence Signals Directorate in the 1980s before moving into the private sector as an independent consultant specialising in strategic cyber security and Telstra’s chief information security officer. Burgess brings a different approach to the ASIO role, injecting corporate experience and a deep knowledge of cyber threats into a position traditionally occupied by security and Australian Public Service veterans. Following significant funding and resources boosts to ASIO, Burgess has been tasked with beefing up ASIO’s capacity to combat espionage and cyber-attacks.

GREG MORIARTY Department of Defence secretary Started role: September 2017 Remuneration package: Up to $864,580 Moriarty has an extensive background working with the Defence Intelligence Organisation and as national security adviser to Malcolm Turnbull. The former commonwealth counter-terrorism co-ordinator worked closely with Morrison in the creation of Operation Sovereign Borders during his time as ambassador to Indonesia.

GENERAL ANGUS CAMPBELL Chief of the Defence Force Started role: July 2018 Remuneration package: $864,580 The former Chief of Army and commander of Operation Sovereign Borders acted as national security adviser to two prime ministers. The veteran soldier is considered a leading reforming figure inside the ADF, and is modernising Australia’s warfare technology to combat external threats. He worked closely with Morrison on Operation Sovereign Borders.

PHIL GAETJENS Department of the Prime Minister and Cabinet secretary Started role: September 2019 Remuneration package: $914,460 A veteran public service chief and one of Morrison’s closest advisers, Gaetjens has been tasked with ensuring the security agencies and departments are being properly equipped and that funding is being allocated to the most high-priority programs. As DPMC chief, Gaetjens’s role is to ensure co-ordination across departments is working.

THE BIG 5 + 2 ANDREW SHEARER Cabinet secretary Shearer is a former deputy director-general at the Office of National Intelligence, and worked as a national security adviser to both Tony Abbott and John Howard. He was brought back from the Washington think-tank the Centre for Independent and Strategic Studies by Malcolm Turnbull to ONI shortly before Morrison became PM. Shearer was brought closer into Morrison’s inner sanctum following the election as Cabinet Secretary with significant influence on strategic policy, including China. Shearer is an influential voice inside the national security community and inside government and strongly tipped to replace Nick Warner as National Intelligence director-general.

NICK WARNER National Intelligencedirector-general Started role: December 2018 Remuneration package: $720,480 The veteran public service and spy boss is likely in the final stages of his career, and his impending retirement would open up another key role in Morrison’s new national security team. Warner is a former Defence Department secretary, director-general of the Australian Secret Intelligence Service and senior DFAT official. Morrison will be planning for a smooth transition, with cabinet secretary Andrew Shearer an option to replace Warner after a 40-year career.

SECURITY ENFORCERS & ADVISERS RACHEL NOBLE Head of the Australian Cyber Security Centre Noble took on the leading cyber role in June following the departure of Alastair MacGibbon. As PMC national security chief information officer and cyber policy co-ordinator, the respected public servant oversaw whole-of-government policy on cyber issues and improved information-sharing between national security agencies. Prior to serving in government, Noble worked for Optus. She is close to Mike Burgess and is considered a leading candidate to be the next head of the Australian Signals Directorate.

PAUL SYMON Australian Secret Intelligence Service director-general Symon, a retired major general, was appointed ASIS chief in December 2017. After a 35-year military career, including six years as Defence Intelligence Organisation director and deputy chief of the Australian Army, he joined the Department of Foreign Affairs and Trade. He previously served as military adviser to Nick Warner during the Regional Assistance Mission to Solomon Islands, and was deployed to East Timor, Lebanon and the Golan Heights.

REECE KERSHAW Australian FederalPolice Commissioner Started role: October 2019 Remuneration package: $720,480 The former Northern Territory Police, Fire and Emergency Services commissioner returned to the AFP after working there between 1988 and 2011. The hard-nosed cop was hand-picked by Morrison as part of his shake-up of the national security architecture and has a key focus on foreign interference, counter-terrorism and organised crime. He has extensive overseas experience, including in East Timor and the Solomon Islands, and was previously seconded to the National Crime Authority and Australian Crime Commission. He is viewed as a team player, which is crucial in the new security arrangements under Home Affairs.

LIEUTENANT GENERAL JOHN FREWEN Australian Signals Directorate acting director-general Started role: September 2019 Remuneration package: $665,070 (ASD director-general remuneration) Worked with Mike Burgess at ASD, and has been acting director-general since September. While he is expected to make way for a new appointment in the coming months, Frewen is considered a leading voice in combating cyber threats and is a senior defence intelligence figure. ASD remains Australia’s first line of defence against cyber attacks on political and higher education targets, as well as strategic institutions and businesses.

MAJOR GENERAL MATTHEW HALL Defence IntelligenceOrganisation director Hall heads the DIO, which was established in 1990 to lead the response to global security issues, weapons of mass destruction, foreign military capabilities, defence economics and transnational terrorism. The DIO plays a key role in supporting the planning and conduct of ADF operations, defence capability and policy development.

MICHELLE CHAN The Prime Minister’s national security adviser As Morrison’s national security adviser, Chan is considered a moderate voice on China, with insiders saying she is a “dove” to Andrew Shearer’s “hawk”. She was most recently deputy director-general of the Office of National Assessments and a former ambassador to Myanmar. She has also had postings to Indonesia, Vietnam and Cambodia.

CHRIS MORAITIS Attorney-General’sDepartment secretary Started role: September 2014 Remuneration package: Up to $775,910As head of the AG’s Department, Moraitis, a former deputy secretary of DFAT, has a leading role in responding to foreign interference and influence in Australia.

Can Andrew Bell, new NSW CJ and Chairman NSW LPAB, avoid referring his NSW LPAB staff to NSW ICAC- NSW LPAB favours granted Zhu Minshen and his Top Education Group Ltd remain a live issue

 by Ganesh Sahathevan

   Zhu Minshen being introduced to Xi Jinping .Zhu passed away earlier this year. He has been replaced by Susan Cao as principal.

Can Andrew Bell, the newly appointed Chief Justice NSW and Chairman NSW Legal Profession Admission Board (LPAB) , avoid referring his NSW LPAB staff to NSW ICAC? -

The favours NSW LPAB granted Zhu Minshen and his Top Education Group Ltd remain a live issue given growing tensions with China, and Top Group's collapsing market capitalisation, even after that infamous pump and dump IPO, based in part on the license to issue law degrees NSW LPAB granted Zhu Minshen.



TO BE READ WITH 

Tuesday, November 26, 2019

NSW LPAB found Zhu Misnhen's Top Group fit and proper to issue LLBs despite Top's links to Chinese government, tax havens, and a mysterious major shareholder -SMH investigation of 2016 reveals details which should concern ASIO, and cause investigation into the conduct of the NSW LPAB

by Ganesh Sahathevan

From left to right :Prof Eugene Clark, Hon George Brandis, Dr Minshen Zhu

In 2016 the SMh reported the following about Zhu Minshen's Top Education Institute:

The institute"s former director and owner of a 10-per cent stake Sydney businessman Qingquan Yang registered Asian Profit Investment to a Samoan bank using law firm Mossack Fonseca in 2005.

Nearly 4000 companies have been registered to the same building, according to documents published by the International Consortium of Investigative Journalists.


The institute"s former director and owner of a 10-per cent stake Sydney businessman Qingquan Yang registered Asian Profit Investment to a Samoan bank using law firm Mossack Fonseca in 2005.

Nearly 4000 companies have been registered to the same building, according to documents published by the International Consortium of Investigative Journalists.

Senator Dastyari declined to comment.

Dongbo Zhang is the director of a New Zealand company Tristar which owns about 10 per cent of the institute's shares.

Mr Zhang is also the director of a multi-billion dollar fund owned by the Chinese government for reducing its energy costs, according to Hong Kong Stock Exchange documents.

He incorporated another company, Joy Surplus Development, in the British Virgin Islands in 2007.

The interests behind the group's largest shareholder, "High Summit Holdings", with a near 20 per cent stake, remains unknown.

An address for the foreign company provided to Australian regulators led to the floor of an office building occupied by a technology investor and video game developer owned by prominent Hong Kong family the Chans.

Both it and a separate address for a parent company provided to Chinese regulators have been used to register multiple offshore companies.

Finally, accounting giant PWC, a 15 per cent nominee shareholder in the institute, has been involved in the development of several tax minimisation services, which were exposed in a 2014 leak of documents, Lux Leaks


A spokesman for the institute declined to provide information on the identity of its shareholders.

"Top Education will not be commenting on this matter," the spokesman said.


In Top's own words:

 In 2013, the Tertiary Education Quality Standards Agency (TEQSA) formally granted TOP accreditation to provide legal education.

In 2015, TOP made history when the New South Wales Legal Profession Admission Board accredited the TOP LLB as a course fulfilling the academic knowledge requirement for admission to legal practice in Australia. TOP became the first non-university tertiary education provider in Australia of an LLB degree that enables its graduates to apply for admission as professional lawyers.

The question here is a simple one: How did the NSW LPAB makes this exception for Zhu Minshen's Top, despite this opaque shareholding structure?


The NSW LPAB has a history of non-disclosure and of poor regulation of the educational institutions that it is meant to regulate.
An audit of the NSW LPAB would be a good place to start in trying to unravel what exactly led to the NSW LPAB's decision to make its history making award to Zhu Minshen and his Top Education Group.

See for example:

Why a special audit of Peter Hall's ICAC must include a review of his handling of the China donation inquiry , and the NSW LPAB 's dealings with Zhu Minshen

Timing of Zhu Minshen & Top Group's LPAB decision adds to LPAB audit red flags: AG Mark Speakman must ensure that the details of the LPAB's dealings with Top, Zhu are fully disclosed. Auditor General NSW has a duty to ensure Speakman does so

Donors linked to tax havens condemned by Dastyari

By James Robertson
September 10, 2016 — 6.31pm



Over the past year NSW Labor Senator Sam Dastyari has built a substantial profile campaigning against multinational tax avoidance and freely accusing businesses and political opponents of profiting from "rorts" and immoral behaviour.

But a Fairfax Media investigation has revealed several owners of the Top Education Institute which made the $1600 gift that forced Senator Dastyari to resign from the frontbench have incorporated companies in some of the world's most notorious tax havens condemned by Senator Dastyari.

Senator Sam Dastyari has been dropped from the frontbench.

CREDIT:WOLTER PEETERS

Last October, using parliamentary privilege Mr Dastyari said Prime Minister Malcolm Turnbull was potentially party to a "tax scam" for registering businesses in the Cayman Islands.

But earlier that week he had updated his own interests register to reflect the $1600 payment from Top Education Institute.





Connections.

Most of the attention on the institute has focused on the company's director, Chinese businessman and donor Minshen Zhu.

Senator Dastyari was forced to step down last week after Fairfax Media revealed that having blown his travel allowance by $1670, he contacted Minshen Zhu to pay the bill.

But the company has seven other shareholders who have escaped the limelight.
"Let's not pussyfoot around it. What is the business model of these tax havens?" Mr Dastyari told an ABC special on the controversial global tax minimisation specialists Mossack Fonseca. "We will allow you to engage in practices for a small fee that would otherwise be illegal in your host country. That's the business model."



The institute"s former director and owner of a 10-per cent stake Sydney businessman Qingquan Yang registered Asian Profit Investment to a Samoan bank using law firm Mossack Fonseca in 2005.

Nearly 4000 companies have been registered to the same building, according to documents published by the International Consortium of Investigative Journalists.

Senator Dastyari declined to comment.

Dongbo Zhang is the director of a New Zealand company Tristar which owns about 10 per cent of the institute's shares.

Mr Zhang is also the director of a multi-billion dollar fund owned by the Chinese government for reducing its energy costs, according to Hong Kong Stock Exchange documents.


He incorporated another company, Joy Surplus Development, in the British Virgin Islands in 2007.

The interests behind the group's largest shareholder, "High Summit Holdings", with a near 20 per cent stake, remains unknown.

An address for the foreign company provided to Australian regulators led to the floor of an office building occupied by a technology investor and video game developer owned by prominent Hong Kong family the Chans.

Both it and a separate address for a parent company provided to Chinese regulators have been used to register multiple offshore companies.

Finally, accounting giant PWC, a 15 per cent nominee shareholder in the institute, has been involved in the development of several tax minimisation services, which were exposed in a 2014 leak of documents, Lux Leaks


A spokesman for the institute declined to provide information on the identity of its shareholders.

"Top Education will not be commenting on this matter," the spokesman said.

According to NSW Electoral Commission documents, Top Education gave more than $80,000 to the ALP in 2012, the year after the party lost power at the NSW level, when Senator Dastyari was general secretary.

But a party source denied this could be viewed as being linked to any attempts to influence the party's policies such as its opposition to the sale of the state's ports announced that year.

Many companies opposed port sales because they could lead to higher freight costs. The institute's linked companies include those in the global transport trade, such as Sydney head of global company Amen Kwai Ping Lee.



"[Chinese donors] don't operate in the same way that we think Western donors do," said the source. "It's never about a particular issue".

Senator Dastyari was due to speak on Wednesday, the Australian Financial Review reported, at an event, "Inside the Panama Papers" before pulling out.

Hong Kong is the global capital of tax evasion, the Panama Papers revealed.

About 800 Australians were found to have interests registered in the leak, ranging from suspects in an Australian Tax Office sting on tax evasion through to prominent and legitimate businesses.

There is nothing illegal about registering companies to minimise tax.



Last year Mr Turnbull said all his investments registered through the Caymans paid tax at the proper domestic rates.

Mr Turnbull is under increasing pressure to reform donor laws. Speaking from a series of summits in Asia this week, he reiterated his long-standing personal view that donations would "ideally" be limited to individuals on the Australian electoral roll, striking off corporations, unions and foreign nationals.

Labor is also pushing for a ban on foreign donations, and Liberal figures as diverse as Christopher Pyne, Cory Bernardi and Steve Ciobo have thrown their weight behind change in various forms.

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HKEX listed CLP Group reported earnings remain in doubt-revenue reporting problems at wholly-owned subsidiary Energy Australia persist

by Ganesh Sahathevan



Revenue reporting problems at HKEX listed CLP Group's wholly-owned subsidiary Energy Australia persist.  A recent query to Energy Australia CEO Mark Collette  about metering in the May-July quarter 2021 has been responded to with the following: 

At your address, you have a manually read basic meter. Ultimately, the meter counts upwards and usage is calculated by taking away the prior meter reading from the current meter reading. This provides us with limited information on the electricity use at the address.

EA insists that there is nothing wrong with its metering and revenue recording systems.

To Be Read With

Wednesday, May 27, 2020

HKEX listed CLP Group reported earnings in doubt given revenue recording issues at wholly-owned subsidiary Energy Australia: Accounting issues add to problems created by EA's closure of its Wallerawang power station in Lithgow, NSW

by Ganesh Sahathevan










Sir Michael Kadoori's CLP owns Energy Australia

By accident rather than design this writer found himself  not once but twice a customer of  Sir Michael Kadoorie and his CLP Group's  Energy Australia Ltd (EA). EA is CLP's wholly-owned Australian subsidiary.

On both occasions the first being in 2008, the second in the recent past, over-billing was the issue. 

In 2008 EA laid blame on the meter reading contractor, on the second a query about over billing resulted in a credit being offered, and then explained away as, in fact, a likely under billing. The credit however remained, as a gesture of goodwill.

All this piqued the curiosity of this writer, given his many years of reporting on South East and East Asian companies, like CLP and so a query was sent first to EA's CEO Catherine Tanna. 

The query was simply this: how did EA account for under and over billing, and what provisions did it make for these issues. Ms Tanna  refused to provide an answer to that simple question. The same query was then sent CLP in Hong Komg,given the implications for CLP's consolidated reports but again, answers to the simple query was refused. 

What has been  received however are a number of emails from EA's PR department which have not addressed the accounting issues.

In light of the above, questions now arise as to the quality of the earnings reported in CLP's consolidated financial statements. published to the HKEX and shareholders. These issues add to the matter of the consequences for EA and CLP arising out of its closure of the Wallerawang power station in Lithgow, NSW (see story below).

TO BE READ WITJ

Tuesday, September 3, 2019

Is EnergyAustralia's Wallerawang a case of a fraud on the electricity market: could Wallerawang be the basis of a class action against Energy Australia and its directors

by Ganesh Sahathevan

Sir Michael Kadoori's

CLP owns Energy Australia











This is an excerpt from a story sure to warm the cockles of any climate scientists' (and fellow travellers') heart:

EnergyAustralia's Wallerawang power station in Lithgow, NSW shut down in 2014, citing an oversupplied energy market. Even though recent reports point to energy supply issues in the market, there are no plans to re-open the site. EnergyAustralia plans to turn the power station into an "eco-industrial" park with industrial waste recycling business Bettergrow.

"We're really excited by the potential to transform Wallerawang into an industrial hub, as Bettergrow has done with disused mines and industrial sites in the past," EnergyAustralia's Mt Piper power station head, Greg McIntyre, said. "Handing over the keys is a complex transaction and we are all working hard to make it a reality.

"Everything we've done behind the scenes with deconstruction and salvaging work to get the old Wallerawang plant ready for new industry is beginning to pay off."

EnergyAustralia and Bettergrow are in discussions for the development of the site.

"Wallerawang has terrific potential as a 'green-spot' eco-industrial park that Lithgow and the broader region can benefit from financially," Bettergrow managing director Neil Schembri said. "For this to work, we will retain the majority of the plant's ... infrastructure ..."

Mr Schembri said the new industrial park could create between 200 and 300 jobs in the future.

(Cole Latimer, The Age,Film sets to art centres: life after dirty power1 June 2019)

However, as the first line suggests, the closure, " citing an oversupplied energy market" may have been premature; indeed given the state of the market today (just 5 years later) it might be argued that the closure was intended to cause an undersupply, in a market that was likely to experience growing demand.

If yes, then the question arises as to whether Energy Australia is liable for the losses caused by a fraud on the Australian energy market.

Since the Supreme Court of the United States inBasic Inc v Levinson 485 US 224 (1988), United States courts have embraced the ‘fraud on the market theory’ in relation to transaction causation, which essentially does away with the need for members of a class to prove actual reliance on the companies misleading representations on the basis that there is a presumption that an efficient market exists where share prices fluctuate according to publicly available information about the company. A defendant may rebut the presumption showing: „ that the market price of the shares was not influenced by the non-disclosure; the aggrieved investors would have purchased the shares at the same price notwithstanding the non-disclosure; and „ the aggrieved investors knew the information that was not disclosed.

The fraud on the market theory has not been accepted by Australian courts but this writer suggests that the position can easily change if and when a matter in which fraud on the market is pleaded comes before a judge who understands finance theory.

Additionally, while the theory has yet to be extended to electricity markets the fact that electricity markets have begun to draw the participation of hedge funds suggests that it is only a matter of time.

Meanwhile, there is nothing to say that litigants cannot launch a class action against Energy Australia for disrupting the electricity supply market by carefully working through the issue of causation.

END 

See also

'Fraud on the market' theory survives challenge in the US
By Ross Drinnan, Jenny Campbell 26 June 2014

Demand side participation in the National Electricity Market

Australian accused of child sex offences given secret security clearance to work in Indonesia - Prime target for Indonesian intelligence, adverse consequences for Australia's national interest likely, all involved must be publicly reprimanded

by Ganesh Sahathevan

The ABC has reported that an Australian public servant from the Department Of Home Affairs who had been  accused of child sex offences and then charged on his return,  had been  given secret security clearance to work in Indonesia. 

Given their superior national and Australian intelligence networks it is quite likely that Indonesia's Biro Intelijen Negara (BIN) was aware of his circumstances. He is therefore likely to have been compromised by BIN and others while in Indonesia, and  it can therefore be assumed that   Australia's national interest has been compromised. All involved in this debacle must be publicly reprimanded as a warning to others who might in future seek to undermine Australia's security infrastructure, by accident or by design.  

To Be Read With

Public servant accused of child sex offences given secret security clearance to work in Indonesia

Posted Fri 1 Apr 2022 at 5:59amFriday 1 Apr 2022 at 5:59am, updated Fri 1 Apr 2022 at 9:51amFriday 1 Apr 2022 at 9:51am

The man was working for Home Affairs in Indonesia.(ABC News: Matt Roberts)

An Australian public servant who had previously been investigated for child sex offences was given a high-level security clearance before working for the government overseas.

Key points:

• The ABC understands the man was given one of the highest security clearances available
• He was investigated for child sexual assault allegations in the early 2000s
• He has since been charged with a number of historical child sexual assault offences

The man has recently returned from a one-year posting in Indonesia with the Department of Home Affairs.

He has since been charged with a number of historical child sexual assault offences and suspended from his job with Home Affairs.

The ABC understands the public servant was given a "Negative Vetting 1" security clearance which gives holders the right to access "Secret" information and is one step below "Top Secret".

It is also understood his security clearance is being reviewed by the Australian Government Security Vetting Agency (AGSVA).

The agency checks a public servant's suitability to handle restricted information through background checks on a person's criminal history, previous employment and other personal information.

The public servant had been investigated for child sexual assault allegations in the early 2000s and the ABC understands police subsequently recommended that he be prosecuted.

It's understood the Director of Public Prosecutions in the jurisdiction he lived in decided not to proceed with the case.

The investigation was conducted before he joined the Australian Public Service.

The AGSVA website states its assessments are "intrusive by nature" and applicants "need to provide more sensitive personal information depending on the level of security clearance you are seeking".

"Personal information collected may be used in future assessments of your suitability to hold a security clearance."

The ABC asked the Department of Defence, which oversees AGSVA, a series of questions about the public servant and whether the previous investigation into sexual assault allegations would preclude him from getting a security clearance.

A Defence spokesperson said the department did not comment on security clearance holders.

The spokesman said it was an offence to provide false or misleading information during a security clearance process, and said doing so could lead to criminal charges and imprisonment.

Posted 1 Apr 20221 Apr 2022, updated 1 Apr 2022