RBA sells Securency interest

The Reserve Bank of Australia (RBA) is selling its 50% stake in money printing firm Securency for $65 million.

Securency has been embroiled in controversy, with some of its agents accused of offering bribes to overseas officials to win note printing contracts. An internal investigation in 2007 found no wrongdoing, but the RBA didn’t bring the Australian Federal Police (AFP) until two years later, in 2009.

Innovia Films, which already owns the other 50% of Securency, is buying the stake from the RBA, which had been looking to sell its share since 2010.

In August last year, RBA governor Glenn Stevens rejected suggestions that senior RBA officials knew of and covered-up allegations of foreign bribery. At the time, Securency senior manager Robing Dearnley claimed bribery was a commonplace practice in the notemaking industry. He told the Australian Financial Review in September 2012 that he had a strong suspicion that Securency was paying bribes from as early as 1999, but felt too junior in his role to come forward for fear of losing his job.

“It was, in my view, common knowledge within Securency and the wider global security printing industry that bribery was a routine and commonplace business practice engaged in by all the players to win business in the world’s more corruption-prone countries,” he said.

Eight former executives of Securency and the Reserve Bank’s subsidiary, Note Printing Australia have been charged with foreign bribery offenses for alleged bribes paid to officials in Malaysia, Vietnam, Nepal and some other countries.

Mr Stevens said that in hindsight, he believed it would have been prudent for the RBA to call in police in 2007.

In the market for high yielding ASX shares? Get three Rock-Solid Dividend Stocks in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading

The Motley Fool’s purpose is to help the world invest, better.   Click here now  for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.  This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Motley Fool writer/analyst Mike King doesn’t own shares in any companies mentioned.

Top 3 ASX Blue Chips To Buy For 2019

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked…

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of The Motley Fool’s Top 3 Blue Chip Stocks for 2019.

Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in a specially prepared FREE report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

See the 3 blue chip stocks

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.