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| Labor demands Turnbull ally be ruled out as next head of corporate regulator | Labor demands Turnbull ally be ruled out as next head of corporate regulator |
| (4 months later) | |
| Appointment of Credit Suisse chairman John O’Sullivan, a Turnbull close friend, would threaten Asic independence, Chris Bowen says | |
| Gareth Hutchens | |
| Wed 20 Sep 2017 08.27 BST | |
| Last modified on Wed 20 Sep 2017 08.28 BST | |
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| Labor is demanding the Turnbull government not appoint John O’Sullivan as the next head of the corporate regulator, saying his links to the Liberal party and to the 2009 Utegate affair would make the appointment unsuitable. | Labor is demanding the Turnbull government not appoint John O’Sullivan as the next head of the corporate regulator, saying his links to the Liberal party and to the 2009 Utegate affair would make the appointment unsuitable. |
| The Coalition is seriously considering appointing O’Sullivan as the next chairman of the Australian Securities and Investments Commission (Asic), to replace Greg Medcraft in November, according to reports. | The Coalition is seriously considering appointing O’Sullivan as the next chairman of the Australian Securities and Investments Commission (Asic), to replace Greg Medcraft in November, according to reports. |
| O’Sullivan, a close friend of Malcolm Turnbull, is the current chairman of Credit Suisse’s local investment bank and a former chief counsel of Commonwealth Bank from 2003 to 2007. | O’Sullivan, a close friend of Malcolm Turnbull, is the current chairman of Credit Suisse’s local investment bank and a former chief counsel of Commonwealth Bank from 2003 to 2007. |
| He has also been president of the Liberal party’s Wentworth federal electoral conference, and has previously donated to Turnbull’s Wentworth Forum (Turnbull’s political fighting fund). | He has also been president of the Liberal party’s Wentworth federal electoral conference, and has previously donated to Turnbull’s Wentworth Forum (Turnbull’s political fighting fund). |
| The shadow treasurer, Chris Bowen, says O’Sullivan’s appointment would threaten the independence of Asic and Labor will not support it. | The shadow treasurer, Chris Bowen, says O’Sullivan’s appointment would threaten the independence of Asic and Labor will not support it. |
| “Labor does not do this lightly,” Bowen said on Wednesday. | “Labor does not do this lightly,” Bowen said on Wednesday. |
| “We do this in light if our most serious concerns and our respect for the importance of Asic’s independence. | “We do this in light if our most serious concerns and our respect for the importance of Asic’s independence. |
| “The reputation of the corporate regulator and its leadership team must be beyond reproach and so to appoint Mr O’Sullivan would raise serious questions around Asic’s independence and its ability to command trust across markets and the parliament. | “The reputation of the corporate regulator and its leadership team must be beyond reproach and so to appoint Mr O’Sullivan would raise serious questions around Asic’s independence and its ability to command trust across markets and the parliament. |
| “On 24 June this year, in response to earlier reports that this appointment was receiving serious consideration by the Turnbull government, federal Labor provided a clear warning on appointing such a partisan figure, linked to the Utegate affair which clearly tainted Malcolm Turnbull, to such an important economic institution. | “On 24 June this year, in response to earlier reports that this appointment was receiving serious consideration by the Turnbull government, federal Labor provided a clear warning on appointing such a partisan figure, linked to the Utegate affair which clearly tainted Malcolm Turnbull, to such an important economic institution. |
| “There were emails released as part of the investigations into the Utegate affair which showed contact between Mr O’Sullivan, then chairman of Credit Suisse’s Australian investment banking operations, and disgraced Treasury official Godwin Grech. | “There were emails released as part of the investigations into the Utegate affair which showed contact between Mr O’Sullivan, then chairman of Credit Suisse’s Australian investment banking operations, and disgraced Treasury official Godwin Grech. |
| “If the prime minister and treasurer were so foolhardy as to proceed with this appointment, this matter would go directly to the poor judgement of the prime minister and treasurer.” | “If the prime minister and treasurer were so foolhardy as to proceed with this appointment, this matter would go directly to the poor judgement of the prime minister and treasurer.” |
| During the so-called Utegate affair in 2009, then-Treasury official Godwin Grech claimed that an adviser to the prime minister, Kevin Rudd, had asked Treasury to provide preferential treatment to a Queensland car dealer, who happened to be Rudd’s neighbour, via the OzCar government funding scheme. | During the so-called Utegate affair in 2009, then-Treasury official Godwin Grech claimed that an adviser to the prime minister, Kevin Rudd, had asked Treasury to provide preferential treatment to a Queensland car dealer, who happened to be Rudd’s neighbour, via the OzCar government funding scheme. |
| Turnbull, who was opposition leader at the time, relied on Grech’s testimony to accuse Rudd of using commonwealth resources to benefit a friend. But when Grech later admitted to fabricating the damaging email that was purportedly sent from one of Rudd’s staff to Treasury, Turnbull’s public approval rating dropped dramatically. | Turnbull, who was opposition leader at the time, relied on Grech’s testimony to accuse Rudd of using commonwealth resources to benefit a friend. But when Grech later admitted to fabricating the damaging email that was purportedly sent from one of Rudd’s staff to Treasury, Turnbull’s public approval rating dropped dramatically. |
| O’Sullivan’s name was associated with the affair because he had exchanged emails with Grech in the months leading up to it, and those emails became public. | O’Sullivan’s name was associated with the affair because he had exchanged emails with Grech in the months leading up to it, and those emails became public. |
| In one email, Grech had praised Sullivan’s then wife, the conservative columnist Janet Albrechtsen, for writing a column critical of Kevin Rudd. | In one email, Grech had praised Sullivan’s then wife, the conservative columnist Janet Albrechtsen, for writing a column critical of Kevin Rudd. |
| However, the auditor general’s report of the Utegate affair made no adverse finding against O’Sullivan or Credit Suisse. | However, the auditor general’s report of the Utegate affair made no adverse finding against O’Sullivan or Credit Suisse. |
| Medcraft’s term as Asic chairman expires on 12 November. He has been in the role since 2011. | Medcraft’s term as Asic chairman expires on 12 November. He has been in the role since 2011. |
| Guardian Australia is seeking comment from John O’Sullivan. | Guardian Australia is seeking comment from John O’Sullivan. |
| Australian politics | |
| Malcolm Turnbull | |
| Liberal party | |
| Coalition | |
| Chris Bowen | |
| Labor party | |
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