Standing Committee on Economics, Finance and Public
Media release, 29 September 1997
MANAGEMENT OF RISK BY GOVERNMENT AGENCIES
The House of Representatives Standing on Financial Institutions and
Public Administration today tabled its report on ANAO Audit Report No
6 1996-97 on Commonwealth Guarantees, Indemnities and Letters of Comfort.
The report examines the management of risks associated with these contingent
liabilities by government agencies.
David Hawker, Chairman of the Committee, said that the ANAO report revealed
a disturbing picture of inadequate management of these instruments which
potentially could expose the Commonwealth to losses.
The Commonwealth had not been informed of potential losses that might
arise, Guarantees and Indemnities were rarely recorded and in too many
cases not managed at all.
"As a result of the audit report and this inquiry, new guidelines have
been issued to ensure that management of these instruments is put on a
sound footing," said Mr Hawker.
"The concern the Committee has is that in the past similar guidelines
appear to have been largely ignored, agency heads must now be required
to observe the guidelines issued by the Department of Finance," Mr Hawker
The Committee is confident that if the recommendations made by the Committee
and Audit are put into practice, together with ongoing monitoring by the
Audit Office, management of risk will be significantly improved.
Ends 29 September 1997
Further information: David Hawker MP (Chairman) Parliament House (02)
Christopher Paterson (Inquiry Secretary) (02) 6277 4587
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