Howard Defends Appointment Of Alleged 'Tax Fraudster' To Central Bank Board

by Mary Swire, Tax-News.com, Hong Kong

02 December 2005

Australia's Prime Minister, John Howard has this week defended the appointment of Robert Gerard to the board of the Reserve Bank of Australia in 2003, despite the fact that Mr Gerard was at that time involved in a tax dispute with the Australian Taxation Office (ATO).

According to an Australian Financial Review report on the matter, Liberal Party donor Mr Gerard had covered up alleged tax evasion, and had failed to cooperate with a long-running ATO investigation into his affairs.

It further stated that the leading businessman had paid A$150 million to settle the matter shortly after his appointment to the board of Australia's central bank.

However, in a statement, Mr Gerard countered that the settlement amount was substantially less, and did not imply that he was guilty of tax evasion or fraud.

In the face of accusations of 'cronyism' from the opposition Labour Party, Mr Howard stated this week that:

"The appointment was handled in a correct, appropriate manner."

Treasurer, Peter Costello has also defended Mr Gerard's appointment, according to AFP News, announcing recently that:

"I have no problem with Mr Gerard as a member of the Reserve Bank board. I think he brings a great deal of understanding of the Australian manufacturing industry to the board."

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