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Labor seeks answers over ASIC expenses

Paul OsborneAAP
ASIC chair James Shipton has stood aside pending an investigation.
Camera IconASIC chair James Shipton has stood aside pending an investigation.

Labor says it is irresponsible for the government to leave the corporate watchdog leaderless for two months in the middle of a recession.

And the federal opposition says Treasurer Josh Frydenberg has questions to answer over when he knew about problems surrounding the payment of expenses to the Australian Securities and Investments Commission's two top officials, James Shipton and Dan Crennan.

Mr Shipton has stood aside from the role pending an investigation into $118,000 worth of expenses relating to his move from the US back to Australia, which he has pledged to pay back.

He says he acted appropriately but holds himself to the "highest possible standard".

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Mr Crennan's expenses for a move from Melbourne to Sydney were $70,000, also to be paid back.

The auditor-general found the total remuneration paid to both officials "may exceed the limits set within the relevant Remuneration Tribunal determinations".

Mr Frydenberg said he had received correspondence from the auditor-general on Thursday bringing the issues to his attention and ordered a review to report back by the end of the year.

But an economics committee hearing was told Mr Frydenberg's office was informed by ASIC on September 15.

"Josh Frydenberg needs to be upfront with Australians about how long he's known about this affair," Labor frontbencher Andrew Leigh said.

Dr Leigh said a media report showing Mr Crennan was paid more than the High Court chief justice should have raised a red flag for the Morrison government.

"To have the corporate watchdog leaderless for two months in the midst of a pandemic and a recession is irresponsible and shows the government's failure to move swiftly on investigating wrongdoing," he said.

"It's exactly the kind of move you'd expect from a government that opposed the banking royal commission and continues to refuse to create a federal ICAC."

Another watchdog, the Australian Prudential Regulation Authority, said it would double check its expenses processes following the ASIC case.

"I'm quite confident that we'll find no problems there," APRA chair Wayne Byres said.

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