Whistleblowing Calls For A Royal Commission Essay

Question:

Discuss About The Whistleblowing Calls For A Royal Commission?

Answer:

Introduction

The Australian: The decision of the Federal Government’s announcement just before the Christmas break can have longing impacts at an all engulfing level that may not yet be apparently clear to everyone right now. The Commonwealth Bank is going to undergo a complete clean-out of its board and management.

Many think that this would mean that the entire financial structure would be changed in the country and the accounting institution’s role is going to be drastically and irrevocably altered. While there are others who maintain that this announcement is simply a subjective investigation on whether human involvement can be replaced by the new technology. The Commonwealth Bank has been facing allegations, for a long time, of being largely ignorant about money laundering of the drug syndicates, being oblivious to terrorism financing and being irresponsible for more than three years for almost a million bank accounts. Failure of such magnitude can be significantly negatively impacting to, and undermine, the national security of the country. The situation has become so bad that some people have suggested that the banks should hold giving bonuses to the executives so that every entity including the community, and those who are at the authoritative positions are delivered a strong message.

The call for a royal commission to the banking sector has its seeds sowed at least three years back, when a senate committee suggested that the Commonwealth Bank should be given a royal commission for the financial planning scandal. The Labour party for more than a year that such a commission would be facilitating in making the sector stronger than before. After the investigations of the Commonwealth Bank financial planning scandal being done through the senate inquiry, National senators have vigorously advocated and called for a banking royal commission.

A draft for a commission of enquiry was made and even some of the lower house members gave their support for the same. Just as the bill was to be introduced to in the Senate, the Prime Minister announced the royal commission. One of the most significant and major effects of the royal commission is the fact that interest rates are going to shoot upwards, which means that the citizens of the country are going to be the real sufferers from this decision. Others have dismissed the step by saying that the commission would not be doing anything rather than simply digging up the things that have already happened. But that being the exact and entire point of an enquiry in the first place, these opinions do not hold any grounds.


Politicians have argued that the royal commission is, in essence, an elaborate cover up that the government is using to keep a lot of financial scandals hidden from the public eye. If this is indeed the case, then there are a lot of serious concerning issues. The bank has been continuously losing its credibility and reliability to the masses since it is a sector that sees its leaders being given tremendous salaries and paying itself with bonuses, but as soon as the situation gets a little bad, they demand taxpayer protection.

The Financial Review: Jeff Morris can finally breathe a sigh of relief as the Federal Government announces the Royal Commission on the Commonwealth Bank. Being the first whistle blower to the corruptions of the bank, Morris ultimately has the satisfaction in seeing the government actually taking formidable steps towards trying to make the financial scandal being scrutinised and justifications be made. He now says that, despite met with severe hostilities and threats against his life, as well as losing his job, he still feels that is he has actually achieved something after all.

Royal commission simply refers to any form of public inquiry that is validated by a parliament act. In effect, royal commissions are governed by acts that are passed through the legislature system and depending on the severity of the event that is being investigated, the commission is also to be debated over on many occasions before actually being put into effect. The financial commission that has been sanctioned by the Federal Government will be looking into the financial planning scandal. Since a commission has the authority to look into any fact in order to uphold the peace and order of the Commonwealth, this is considered to be uncovering a lot of hidden facts and issues that were previously duped by the government and not brought forth to the public.

The current commission will be investigating the allegations of corruption and misconduct in the sector of financial services sector. Hence, it can be understood that the facts behind banks spending people’s retirement savings excessively or giving out dubious financial advices would finally be looked into and the different corruption practices that were in play would be revealed properly. The Commonwealth Bank has failed to uphold the community standards and serve accordingly, which the commission is going to be discussing and investigations of the corruption is sure to be uncovering a lot of truths.

However, the problem with this may be the fact that the taxpayers would have to be suffering ultimately once again. Since the commission is being funded by the government, it means that taxpayers are the ones who are going to be financing it. This may throttle the interest rates of the banks to get higher, so this means that more burden on the taxpayers, the citizens of the country, once again. The amount that is needed for this is not quite small either: $75 million to be raised from simply taxes is not a mere task. The commission would not be having any executing powers vested upon itself: it can rather only make suggestions to the government, which is entirely upon them to take or reject.

The royal commission is to be headed by former High Court judge Kenneth Hayne. The rest of the panel which is going to be in the investigation committee are all previously public servants and this gives them excellent knowledge on how to properly do the investigation so that the public can be the most benefited.

References

Boyle, P. (2016). We need an inquiry into the marketing industry. Green Left Weekly, (1087), 6.

Ferguson, A., & Butler, B. (2014). Commonwealth Bank facing royal commission call after Senate financial planning inquiry. Banking and Finance’, The Sydney Morning Herald, Business Day ed., published by Fairfax Media, Sydney, NSW, 26.

Matthews, A. (2016). The financial services industry: Whistleblowing and calls for a royal commission. Precedent (Sydney, NSW), (136), 35.

McIlroy, J. (2017). Bank inquiry aimed at heading off royal commission. Green Left Weekly, management, 2.

McIlroy, J. (2017). Bank royal commission: Is this the last straw for Turnbull?. Green Left Weekly, (1164), 4.

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