Chalmers accused of ‘cover-up’ for not releasing report into ASIC deputy chair

Treasurer Jim Chalmers has been accused of covering up the findings of a 2021 investigation into the conduct of ASIC deputy chair Karen Chester after he made a public interest immunity claim to avoid releasing the documents for privacy concerns.

Last week, the Senate ordered Treasury to produce the investigation’s findings after The Australian Financial Review reported in February that it had given $180,000 to law firm Seyfarth Shaw to investigate complaints about Chester’s conduct, including from ASIC chairman James Shipton. 

The complaints, which reportedly relate to allegations of “disrespectful and contemptuous” conduct by Chester to junior and senior staff, included one related to an incident between Shipton and Chester in 2021 that allegedly involved shouting and door-slamming.

Liberal Senator Andrew Bragg, who has been pushing for the report’s release since it became known, said he was “surprised” Chalmers decided to “personally cover up” the report’s findings. 

“The public interest here is not in exposing the privacy of particular persons. The public interest here is in the findings the taxpayers have paid for,” Bragg told Crikey. “So the taxpayers ought to know what they are.”

Early last week a strong majority in the Senate — including the Liberals and Nationals, the Greens and members of the Senate crossbench — ordered Treasury to produce the findings of the report.

In a letter to the Senate published on Thursday, Chalmers claimed public interest immunity, saying the disclosure would “unreasonably infringe on the privacy” of those referred to in the report, as well as the “confidential informants” who cooperated with the investigation.

“Moreover, there is a public interest in preserving the integrity of fact-finding investigations regarding an individual’s conduct so that complainants continue to feel comfortable raising allegations,” he wrote, adding the disclosure could also cause “undue prejudice” against Chester.

Greens Senator Nick McKim said the party was “happy to support the order” in the first instance in the “interests of transparency”, but that he continues to consider Chalmers’ claim.

Facing questions about the investigation at an appearance at Senate estimates last month, ASIC chairman Joe Longo supported claims made by Chester that there were “no adverse findings” made against her in the report, days before a letter from Treasury secretary Steven Kennedy said the claims of the alleged conduct were “wholly or partially substantiated”. 

As the Senate determines what will happen next, Bragg said the credibility of the corporate watchdog remained under threat.

“I just think [ASIC’s] reputation has been damaged by how this has been handled, and it hasn’t been resolved. There are still questions that haven’t been answered. Until they have been resolved, I think there’ll be a question mark over the regulator,” he said. 

“When your role is to enforce the corporate law of Australia and you have a governance problem, I think it’s very, very unfortunate. But I can’t wish away this issue; this has happened on my watch, so we need to take it to a conclusion.”