RBA sells Securency interest

Stake in controversial money printing firm to be sold

Mike King

Mike King is a Fool.com.au Investment Analyst and Writer. He caught the investing bug more than a decade ago, at a time when the U.S. had invaded Iraq and fear reigned in the markets. His initial success as the markets took off encouraged his passion and thirst for knowledge. With 13 years behind him at one of Australia's largest domestic banks, Mike's passion for stocks led him to join a boutique funds management firm, where he stayed for four years. A seven-year stint in equity research at one of the largest investment banks in the world followed that, giving Mike a thirst to pursue his passion further. Mike holds a Diploma in Applied Finance and Investment and a Graduate Certificate in Financial Planning. His passion is to help retail investors invest better, and that passion was one of his primary reasons for joining The Motley Fool Australia in late 2011. Mike has written thousands of articles since joining, including for Fairfax Media, Yahoo!7, Ninemsn and has also appeared on ABC's The Business. You can see all of Mikes' holdings here

Published February 12, 2013 10:38 am AEDT

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.

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