Category: Corporate Crime

Super funds treat customers with contempt? That’s putting it lightly | Greg Jericho | Business | The Guardian

Fingers crossed

Over a decade my CBA Super Fund has yeild a total of 25%. There is absolutely nothing about a fund thats annual average has been a loss. The self managed portion of my fund has had a yeild of well over 100% and I’m certainly not a professional. Dear Agony Aunt have I been “ripped off”?  (ODT)

Of the 74 funds with MySuper products, the commission found that 20 were underperforming – worth about 4.6m member accounts. Of those 20, nine were retail funds, six industry, three corporate (ie funds set up to cover employees of a company) and two public sector funds.

But that breakdown wrongly suggests the retail and industry sectors are almost equally as bad.

What those numbers hide is that the nine retail funds are among the biggest of their kind and the six poor-performing industry funds are among the smallest.

In reality, most people in dud MySuper funds are in retail funds, and most of the people in retail MySuper funds are in dud funds.
The biggest losers: Productivity Commission finds super funds wanting

via Super funds treat customers with contempt? That’s putting it lightly | Greg Jericho | Business | The Guardian

When CEO’s Earn 5,000 Times as Much as a Company’s Workers

Mattel is one of the largest toy-making companies on earth. Turns out it’s one of the biggest manufacturers of income inequality, too.

Last year, the Barbie doll manufacturer paid its CEO nearly 5,000 times as much as its median worker.

via When CEO’s Earn 5,000 Times as Much as a Company’s Workers

Push to jail employers for up to 10 years for ‘wage theft’

Unions will campaign ahead of this year’s state election for the Andrews government to make ‘wage theft’ a crime and punishable by up to 10 years in jail.

The move by the Victorian Trades Hall Council and its Young Workers Centre is part of a growing legislative push in Australia to try to turn the deliberate underpayment of wages into a criminal offence.

Push to jail employers for up to 10 years for ‘wage theft’

The way banks are organised makes it hard to hold directors and executives criminally responsible

The Financial Services Royal Commission has seen evidence that bank directors and executives deliberately put in place policies to ignore the law.

But research suggests the very organisational structure of banks makes it difficult to hold directors and senior executives criminally responsible for systemic misconduct.

via The way banks are organised makes it hard to hold directors and executives criminally responsible

Banking royal commission hears of cash bribes, conflicts of interest and hidden fees – Analysis & Opinion – ABC News (Australian Broadcasting Corporation)

A graphic shows four men in suits and ties that match the colours of the 'Big Four' banks.

A tailor pushing $122 million in home loans, gym owners assessing peoples’ finances, paper envelopes filled with cash bribes, and a bank chief executive revealing his own customers are getting a raw deal.

via Banking royal commission hears of cash bribes, conflicts of interest and hidden fees – Analysis & Opinion – ABC News (Australian Broadcasting Corporation)

Property sellers pay mortgage brokers, financial planners and accountants for client referrals – Business – ABC News (Australian Broadcasting Corporation)

Apartments recently built and under construction in Sydney

via Property sellers pay mortgage brokers, financial planners and accountants for client referrals – Business – ABC News (Australian Broadcasting Corporation)

No ‘Paradise Lost’ for multinationals’ tax evasions| Self-allocated subsidies| We pay

These trillions are kept out of sight, locked away by the capitalist rulers, and workers are told that cut backs to health care, education and pensions are needed to balance the government budget. The “Paradise Papers” confirm that the capitalist economic system we live under is bankrupt as far as the working class is concerned. It is the workers who create value – surplus value – and the capitalist class skims it off, demonstrating the fact that capitalists are parasites, who are not necessary for human development and production.

No ‘Paradise Lost’ for multinationals’ tax evasions

Government shields directors after taxpayers foot $1.6bn wage dues | When Criminal Employers are called entrepreneurs

Minister for employment Michaelia Cash

The employment department is refusing to reveal the identities of the directors who contributed to a total unpaid wage bill of $1.6bn over 10 years, which was left to taxpayers to pick up.

Government shields directors after taxpayers foot $1.6bn wage dues | Australia news | The Guardian

Company Town: ‘quiet tragedy’ of an Arkansas community vs the Kochs | US news | The Guardian

A new film tells the story of Crossett, Arkansas – a small town dominated by a Koch brothers-owned paper mill, blamed for dumping cancer-causing chemicals

Source: Company Town: ‘quiet tragedy’ of an Arkansas community vs the Kochs | US news | The Guardian

Adani mining giant faces financial fraud claims as it bids for Australian coal loan | World news | The Guardian

Exclusive: Allegations by Indian customs of huge sums being siphoned off to tax havens from projects are contained in legal documents but denied by company

Source: Adani mining giant faces financial fraud claims as it bids for Australian coal loan | World news | The Guardian

School cleaning contracts to be slashed in Victoria after workers routinely exploited – ABC News (Australian Broadcasting Corporation)

Victorian public school cleaning contracts are being slashed in a bid to stop staff being routinely underpaid and exploited by rogue operators.

Source: School cleaning contracts to be slashed in Victoria after workers routinely exploited – ABC News (Australian Broadcasting Corporation)

‘Reasonable grounds’ to suspect Grenfell tower fire was corporate manslaughter – London police — RT UK

Police investigating London’s Grenfell Tower disaster, in which 80 people were killed in rapidly spreading fire, have sent a letter to survivors and families of victims saying there are “reasonable grounds” to suspect it was a case of corporate manslaughter.

Source: ‘Reasonable grounds’ to suspect Grenfell tower fire was corporate manslaughter – London police — RT UK

Mining report finds 60,000 abandoned sites, lack of rehabilitation and unreliable data – ABC News (Australian Broadcasting Corporation)

More than 60,000 mines have been abandoned across Australia, according to a report that raises concerns about how land rehabilitation is managed.

Source: Mining report finds 60,000 abandoned sites, lack of rehabilitation and unreliable data – ABC News (Australian Broadcasting Corporation)

7-Eleven: More workers speak out about ‘cash back’ scams – ABC News (Australian Broadcasting Corporation)

More 7-Eleven workers are speaking out about the so-called cash back scam, in which employees are forced to hand back part of their pay to franchisees of the convenience chain.

Source: 7-Eleven: More workers speak out about ‘cash back’ scams – ABC News (Australian Broadcasting Corporation)

Government recovers over $41 million worth of false claims after ‘rorting’ of Job Services Australia scheme – ABC News (Australian Broadcasting Corporation)

An investigation reveals the Government has clawed back more than $41 million in false claims by private employment agencies.

Source: Government recovers over $41 million worth of false claims after ‘rorting’ of Job Services Australia scheme – ABC News (Australian Broadcasting Corporation)

7-Eleven And Their Fire; Malcolm Makes Strange Promise To Enforce Law – » The Australian Independent Media Network

MICHAEL SMITH (7-Eleven Chairman): Well I think you’ve come to the nub of the issue. We were on fire when this happened and we needed to act really quickly. We appointed the panel and we’re very grateful that they came to help us to make that as an issue that we didn’t have to spend…

Source: 7-Eleven And Their Fire; Malcolm Makes Strange Promise To Enforce Law – » The Australian Independent Media Network

Colgate-Palmolive to pay $18m penalty for laundry detergent cartel – Another trusted corporate citizen

Colgate-Palmolive is hit with the equal third biggest penalty for cartel conduct in Australian history for price and supply fixing of laundry detergents.

Source: Colgate-Palmolive to pay $18m penalty for laundry detergent cartel – ABC News (Australian Broadcasting Corporation)

Unaoil chiefs questioned by police after Fairfax revelations

The headquarters of global oil company Unaoil and the homes of their executives have been raided by police in the wake of revelations in recent days that the Monaco company systematically corrupted the global oil industry.

Source: Unaoil chiefs questioned by police after Fairfax revelations

Clive Palmer refinery: Taxpayers face multi-million-dollar bill to clean up Queensland Nickel site – ABC News (Australian Broadcasting Corporation)

Taxpayers could be forced to stump up tens of millions of dollars to clean up the site of Clive Palmer’s north Queensland refinery.

Source: Clive Palmer refinery: Taxpayers face multi-million-dollar bill to clean up Queensland Nickel site – ABC News (Australian Broadcasting Corporation)

Toxic Levels Of Chemicals Found In European Marine Mammals | IFLScience

It is looking more and more likely that orcas swimming in European waters will soon be a thing of the past. An extensive study investigating four species of whales and dolphins living off the coast of Europe has found that the levels of a harmful chemical, polychlorinated biphenyl, in the marine mammals’ fat are the highest recorded anywhere in the world.

Source: Toxic Levels Of Chemicals Found In European Marine Mammals | IFLScience

VW and Exxon: indicative of a polluted corporate culture that must change | Guardian Sustainable Business | The Guardian

2015’s corporate scandals should serve as a nail in the coffin of old, outdated ways of doing business, says Pavan Sukhdev

Source: VW and Exxon: indicative of a polluted corporate culture that must change | Guardian Sustainable Business | The Guardian

Volkswagen Australia confirms 77,000 cars with emissions-rigging software | Business | The Guardian

The company says owners of affected models do not need to take any action until a technical solution is made available by its head office in Germany

Source: Volkswagen Australia confirms 77,000 cars with emissions-rigging software | Business | The Guardian

7-Eleven: New chairman says Australia has widespread wage fraud problem: Why the Royal Commission is Political Fraud

Scandal-plagued 7-Eleven’s newly minted chairman has declared the nation has a widespread problem with wage fraud and revealed that even his own daughter has been ripped off.

Source: 7-Eleven: New chairman says Australia has widespread wage fraud problem

Why the Royal commission should have been on business not just unions

Companies investigated for foreign bribery should be able to cut deals: BHP – Richard Baker, Nick McKenzie

” Australian companies being investigated for foreign bribery should be able to cut deals with police to avoid criminal prosecutions, according to BHP Billiton.

In a submission published by the senate committee on foreign bribery, BHP Billiton said Australia’s laws on foreign bribery should be changed to allow companies to make deferred or non-prosecution agreements with authorities for lower-scale bribery-related incidents.

Unlike the UK and US, which allow companies to reach settlements with authorities, Australia only permits federal police to lay criminal charges or take no action at all. Foreign bribery investigations involving Australian companies are usually lengthy, costly and difficult for police to gather evidence from overseas jurisdictions.

A BHP Billiton executive said the Australian approach was “all or nothing”.

Despite Australia making foreign bribery a criminal offence since 1999, the AFP has launched only two prosecutions.The most well known case, which involves subsidiaries of the Reserve Bank of Australia and their top former executives, is still before the courts despite charges being laid more than four years ago.

The AFP is still investigating BHP Billiton for foreign bribery issues. It also has long-running investigations into Leighton Holdings, now known as CIMIC, and Tenix.

BHP Billiton has first-hand experience of negotiating a settlement after the US Securities Exchange Commission this year fined it $US25 million for breaching the Foreign Corrupt Practices Act in relation to its 2008 Beijing Olympics hospitality for foreign officials

The mining giant also wants the defence of a “facilitation payment” to be removed from Australia’s criminal code. Some companies argue that a facilitation payment to a foreign official to get them to quickly fulfil one of their responsibilities, such as expediting a licence renewal, are acceptable and do not constitute a bribe. ”

VW lost the plot. But that’s the danger when business lacks social moorings | Will Hutton | Comment is free | The Guardian

VW’s existential crisis has revealed the weaknesses inherent in western economies. Change must now happen

Source: VW lost the plot. But that’s the danger when business lacks social moorings | Will Hutton | Comment is free | The Guardian

Volkswagen scandal: Even textbook crisis management can’t save VW: Corporate crime is far greater than trade union fraud Heydon’s Royal Commission is a political farce.

As important as it is to manage crises in the correct manner, there are some mistakes that simply cannot be unmade.

Source: Volkswagen scandal: Even textbook crisis management can’t save VW