Standing Committee on Economics, Finance and Public 
        Administration 
      
      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 
        added. 
      
 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) 
        6277 4100
        Christopher Paterson (Inquiry Secretary) (02) 6277 4587 
      
      
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