ABC payments to its superstars should be treated like unauthorised related party transactions ,and investigated as such

 by Ganesh Sahathevan

The ABC's  payments to its superstars are not dissimilar to payments companies make to related parties. Related party transactions are not illegal, but they must be disclosed. This is not the case with the ABC which has chosen to conceal the names of its highest paid non-managerial employees. 

The ABC is in effect an employee controlled company  despite its formal management structure given the power and influence employees, and in particular senior employees, have over its operations.

While that may be the case in many media companies bound to a charter of independence, many of those in Australia are privately owned and shareholders  invariably have the final say, either via their boards, or in the case of listed companies, selling their shares and driving down the value of the company.

The ABC on the other hand is taxpayer funded, and its journalist are not shy of using their platform to fight any changes to its funding arrangements. 

Given the working environment it is not unlikely that managers may not be as objective as they should be when dealing with the staff, especially their superstars. 

Consequently ABC's payments to its superstars ought  be  treated like unauthorised related party transactions ,and investigated as such. Related party transaction investigation would involve the conduct of managers and staff involved in the transactions, complete disclosure of the names of the employees and managers who were responsible for the payments, and  disclosure in full in a supplementary or interim report that should be tabled in Parliament, and then  in all subsequent annual reports when similar payments are made.

One ABC employee was paid close to AUD 600,000 in the 2023 financial year creating even more superstar risk at the ABC -An audit red flag which requires a forensic audit going back to at least 2016, ABC is still audited by KPMG which ABC 4 Corners says cheated the Department Of Defence

October 25, 2023

 by Ganesh Sahathevan 

One ABC employee, who is not in the executive ranks,  was paid close to AUD 600,000 in the 2023 financial year. Who this person is, and why that remuneration is justified , has not been explained. 

The money paid to this person  adds to the ABC's superstar risk. Like the risk of superstar CEOs,  it exposes the ABC,and taxpayers, to the ineptitude of an individual or in the case of the ABC,a small group of individuals, often journalists with high profiles but little training in the areas they profess expertise. Laura Tingle's recent pronouncements on what should and should not be reported with regards constitutional law matters is but one example. Tingle is now known to have any legal qualifications. 

Meanwhile the discredited KPMG remains the ABC's auditor. This remains the case despite the ABC reporting recently that KPMG cheated the Department Of Defence. 

A forensic audit of  the ABC's books, with a particular focus on  consultancies and  content creation contracts entered into with current and former employees is long overdue.

TO BE READ WITH 

Review of the ABC's highest paid may reveal the few who gained at the expense of many - 58% rise in what the ABC gave its highest paid is further reason for a forensic audit of consultancies, content creation contracts entered into with current and former employees