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Westpac’s scandal highlights a system failing to deter corporate wrongdoing

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Elise Bant, University of Melbourne and Jeannie Marie Paterson, University of Melbourne

The news that Australia’s anti money-laundering regulator has accused Westpac of breaching the law on 23 million occasions points to the prospect that powerful members of corporate Australia are still behaving badly.

This despite the clear lessons offered by the Banking Royal Commission.

Regulators are still struggling to find the right balance between pursuing wrongdoers through the courts – an admittedly costly, time-consuming and highly risky business – and finding other means to punish and deter misconduct.

Australia’s anti money-laundering regulator, AUSTRAC, is seeking penalties against Westpac in the Federal Court.

Each of the bank’s alleged contraventions attracts a civil penalty of up to A$21 million. In theory, that could equate to a fine in the region of A$391 trillion.
In practice, it is likely to be a mere fraction of that sum. Commonwealth Bank breached anti-money-laundering laws and faced a theoretical maximum fine of nearly A$1 trillion, but settled for A$700 million.

No doubt the reality that companies can minimise penalties is a factor in why breaches continue.

This impression is reinforced by revelations last week that financial services company AMP continued to charge fees to its dead clients despite the shellacking it received at the hands of the royal commission.

Last month a Federal Court judge refused to approve a A$75 million fine agreed between the Australian Competition and Consumer Commission and Volkswagen to settle litigation over the car company’s conduct in cheating emissions tests for diesel vehicles. The judge was reported to be “outraged” by the settlement, which meant Volkswagen did not admit liability for its misconduct.

The A$75 million is a drop in the ocean of the likely profits obtained from this systemic wrongdoing and pales into insignificance next to fines imposed in other countries.

Proposals for law reform

So business as usual, right?

Maybe not for long. The Australian Law Reform Commission has just released a discussion paper on corporate criminal responsibility.

It points out that effective punishment and deterrence of serious criminal and civil misconduct by corporations in Australia is undermined by a combination of factors.

These include a confusing and inconsistent web of laws governing the circumstances in which conduct is “attributed” to the company. Similar problems of inconsistency arguably also undermine other key areas, such as efforts to give courts the power to impose hefty fines based on the profits obtained by the wrongdoing

The repeated attempts to come up with new and more effective attribution rules arise because corporate wrongdoers are “artificial people”. For centuries, courts and parliaments have struggled with how to make them pay for what is done by their human managers, employees and (both human and corporate) agents. All too often a company’s directors disclaim all knowledge of the wrongdoing.

To fix this, the ALRC recommends having one single method to attribute responsibility. It builds on the attribution rule first developed in the Trade Practices Act 1974 (Cth) and now used, in various forms, across various statutes.

The ALRC proposes that the conduct and state of mind of any “associates” (whether natural individuals or other corporations) acting on behalf of the corporation should be attributable to the corporation.

This goes well beyond the traditional focus on directors and senior managers and would provide some welcome consistency in the law.

Importantly, serious criminal and civil breaches that require proof of a dishonest or highly culpable corporate “state of mind” can be satisfied either by proving the state of mind of the “associate” or that the company “authorised or permitted” the conduct.

A “due diligence” defence would protect the corporation from liability where the misconduct was truly attributable to rogue “bad apples” in an otherwise a well-run organisation. There would be no protection in the case of widespread “system errors” and “administrative failures” so pathetically admitted during the royal commission.

The ALRC also proposes that senior officers be liable for the conduct of corporations where they are in “a position to influence the relevant conduct and failed to take reasonable steps to prevent a contravention or offence”.

This would place the onus on those in a position to change egregious corporate practices to show they took reasonable steps to do so.

Removing the penalty ceiling

These recommendations, if adopted could prove a game-changer for regulators asking themselves “why not litigate?” and corporations used to managing the fall-out of their misconduct as simply a “cost of business”.

The ALRC’s recommendations that the criminal and civil penalties should be enough to ensure corporations don’t profit from wrongdoing will be welcomed by many. Some academics have gone further and argued that the law should be changed to make it clear that civil, not just criminal penalties, should be set at a level that is effective to punish serious wrongdoing.

The ALRC also raises the question whether current limits on penalties should be removed. The Westpac scenario might be just the kind of case to make that option attractive.The Conversation

Elise Bant, Professor of Law, University of Melbourne and Jeannie Marie Paterson, Professor of Law, University of Melbourne

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Myanmar earthquake: Toll crosses 1,600, rescue ops continue; satellite images show extent of devastation across Mandalay

In Thailand, the situation is similarly grim. Reports indicate a rise in the death toll to 17 as of Sunday, with city officials confirming 32 injuries and 83 individuals still unaccounted for, primarily linked to a 30-story construction tower that collapsed.

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Satellite imagery has captured the devastating impact of the recent 7.7-magnitude earthquake that struck Myanmar, leading to cataclysmic destruction and resulting in the loss of over 1,600 lives. As international aid efforts mobilize, the country’s death toll has reached 1,644. In Mandalay, residents are desperately searching through the rubble for survivors, while aftershocks continue to shake the already ravaged city.

In Thailand, the situation is similarly grim. Reports indicate a rise in the death toll to 17 as of Sunday, with city officials confirming 32 injuries and 83 individuals still unaccounted for, primarily linked to a 30-story construction tower that collapsed.

In response to the disaster, India has launched its Humanitarian Assistance and Disaster Relief (HADR) operations. A specialized rescue contingent from the 50 (I) Para Brigade was deployed to Myanmar under Operation Brahma. This team, consisting of 118 members with medical and communication capabilities, arrived at Naypyitaw International Airport yesterday, led by the brigade’s commander.

After unloading crucial supplies and equipment, the team has moved to a nearby harbor area, located approximately 45 minutes from the airport. Today marks the beginning of the mission’s expansion, with a reconnaissance unit that includes an officer and a Junior Commissioned Officer heading into Mandalay, situated 160 miles north of their current base.

Mandalay has been designated as the primary operational center, and plans are in place for the full team to arrive later this morning. While aerial deployment is the primary strategy, road access is also being considered to facilitate the establishment of the operational theater.

In light of the earthquake, neighboring countries have dispatched warships and aircraft filled with relief supplies and rescue teams. India, China, and Thailand, alongside Malaysia, Singapore, and Russia, are among those providing support.

Indian military planes have conducted multiple flights into Myanmar, delivering essential supplies and search-and-rescue teams to Naypyitaw, where significant destruction has occurred. The Indian Army is also working to set up a field hospital in Mandalay, with two navy vessels on their way to Yangon, Myanmar’s commercial center, carrying additional supplies.

Chinese rescue teams have also arrived, including a group that entered via land from Yunnan province, as reported by China’s embassy in Myanmar. Additionally, a 78-member team from Singapore, equipped with rescue dogs, has been active in Mandalay today, according to media reports.

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Partial solar eclipse 2025 today: Timings, livestreams, double sunrise effect and safety tips

The first solar eclipse of 2025, occurring today, will not be visible from India but can be watched online via livestreams by NASA and other observatories.

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Partial solar eclipse forming crescent Sun in sky

A partial solar eclipse, the first of the year 2025, is set to unfold today, March 29. While this celestial phenomenon will be observable from several parts of the world, it will not be visible from any region in India. The eclipse is expected to start around 2:20:43 PM IST and continue until 6:13:45 PM IST, with visibility dependent on geographic location.

What is a partial solar eclipse?

Unlike a total eclipse where the Moon entirely blocks the Sun, a partial solar eclipse leaves part of the Sun exposed. As the Moon partially covers the Sun, it creates a striking crescent-like shape in the sky. Today’s eclipse is also expected to produce a rare “double sunrise” effect — where the Sun appears to rise, dim briefly, and rise again — typically visible in areas where the eclipse coincides with sunrise.

A global event, but not for Indian skies

According to space data agencies, about 100 crore (1 billion) people will be in locations where they can witness this partial eclipse. However, only around 44,800 people will see at least 90% coverage of the Sun — marking a very limited population for the highest visibility range.

Watch safely — never directly

Experts strongly advise against looking at the Sun directly during any solar eclipse. Viewers should only use certified solar viewing glasses, eclipse glasses, or handheld solar viewers. Watching through regular cameras, binoculars, or telescopes without proper solar filters can lead to severe eye damage.

Livestreaming options for virtual viewing

For those in India and elsewhere who cannot witness the eclipse directly, several global platforms like NASA and SLOOH Observatory are offering live streaming on their websites and social media channels. Indian space authorities like ISRO may also stream the event live. Viewers can access real-time visuals and expert commentary from the comfort of their homes.

The eclipse pairing rule

Astronomers remind us that eclipses always occur in pairs. This solar eclipse follows a total lunar eclipse that occurred just two weeks ago. Another pair of solar and lunar eclipses is expected to occur in September 2025, in line with the seasonal pattern of eclipses occurring roughly six months apart.

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Myanmar-Thailand earthquake leaves over 1,000 dead, massive destruction across region

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Delhi earthquake tremors force residents to evacuate buildings

A powerful 7.7-magnitude earthquake struck Myanmar on Friday, shaking parts of Southeast Asia and eastern India and causing large-scale devastation. The earthquake and its subsequent aftershocks, including one measuring 6.7 in magnitude, have resulted in the deaths of over 1,000 people and injured more than 2,376 across Myanmar and Thailand.

Myanmar reels under quake amid ongoing civil conflict

The epicentre was located northwest of Sagaing in Myanmar and struck at a shallow depth of 10 km around 12:50 pm local time. The tremors were felt as far as eastern India, China, Cambodia, and Laos. Myanmar’s military administration confirmed that over 1,000 people have died due to the quake, with rescue and relief efforts severely hampered by the country’s ongoing civil war and under-resourced emergency response system.

In Mandalay, major buildings collapsed, leaving behind mangled steel and concrete. Emergency workers and local residents continue to dig through rubble to rescue those trapped. The Ava Bridge, an almost century-old structure across the Irrawaddy River, also gave way during the tremors.

Thailand reports deaths, dozens feared trapped

In neighbouring Thailand, the quake led to the collapse of a high-rise building under construction near Bangkok’s Chatuchak market, killing 10 people. Authorities fear up to 100 workers may still be trapped in the debris.

Thai Prime Minister Paetongtarn Shinawatra convened an emergency meeting to assess the situation and coordinate rescue efforts.

International aid begins to arrive

Myanmar’s military junta made a rare appeal for global assistance, with General Min Aung Hlaing calling on “any country, any organisation” for support. India promptly responded, with Prime Minister Narendra Modi expressing concern and offering help.

India’s Air Force dispatched 15 tonnes of relief supplies — including blankets, tents, medicines, and water purifiers — from the Hindon air base to Myanmar.

The United States and European Union also pledged support. US President Donald Trump confirmed communication with Myanmar officials and assured assistance, calling the situation “a real bad one.”

The Indian embassy in Thailand reported no casualties among Indian nationals and advised caution amid aftershocks.

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