Whistleblowers deserve protection not punishment when they expose major safety breaches.
I questioned ASIC in Senate Estimates about Roxanne Mysko, a brave whistleblower and former Compliance, Health and Safety Manager at transport company ECS.
Despite following whistleblower protocol to the letter when reporting serious, systemic safety failures, including zero safety audits conducted from 2007 to 2020, Ms Mysko faced severe retribution. Instead of stepping up to investigate fatigue-related risks and enforce the law, ASIC simply kicked the can back to the regulator, leaving workers and the public at risk.
I asked ASIC why they have failed to protect her and hold these corporations accountable. Instead of answering this question, they hid behind process, promising to address the matter in a private briefing.
To top it off, investors left out in the cold by the Lyon Property Group collapse are being denied access to administrative compensation schemes, with ASIC trying to pass the buck off to the Department of Finance.
I won’t let regulatory bodies off the hook for failing the people they are supposed to protect.
Transcript
CHAIR: Senator Roberts.
Senator ROBERTS: Thank you, Chair, and thank you all for being here. Ms Roxanne Mysko is a whistleblower who has not been protected by whistleblower legislation as she should have been. She was the compliance, health and safety manager for ECS Project Logistics, a major transport company. On 16 June 2020, she reported significant safety breaches in that company to SafeWork SA. She also reported to the National Heavy Vehicle Regulator and to Senator Glenn Sterle that ECS had done no safety audits from 2007 to 2020, and had no safety system as of February 2020—this was fully evidenced. ECS worked for Santos. Despite this, the National Heavy Vehicle Regulator did not investigate the raised issues of fatigue and lack of safety audits. ASIC were notified in February 2022; ASIC simply referred the issue back to the National Heavy Vehicle Regulator, where nothing further has been done and the risks continue regarding limited attention to fatigue related deaths, systemic regulatory failures and domestic heavy vehicle safety. Ms Mysko followed whistleblower protocol to the letter and has been on the receiving end of significant retribution for her disclosures as a whistleblower. Evidence shows ECS was contracted to Santos, Ensign Energy and Easternwell. Why has ASIC shown zero statutory duty to uphold the whistleblower safety act and laws? Are you aware that these are very serious criminal offences and involve risking the lives of workers and public safety at extreme levels?
Ms Court: Thank you, Senator Roberts, and good morning. I know you have raised this issue with us previously, so thank you for your question. Since we last met, I have some more information in relation to the matters that you raised. The difficulty I have is that we’re unable to give evidence about whistleblower interactions in a public forum. So I’m in a bit of a bind.
Senator ROBERTS: Could we have a private briefing?
Ms Court: Of course, Senator, we’d be very happy to give you a briefing. I am aware that the issues you’ve raised date back, I think, to 2022, as you said in your question. I can certainly assure you that these issues were looked at carefully and in a considered way. But, if you’re comfortable with that, it would be preferable for us to have a briefing and let you know about this—to the extent, again, that we can by law. I’ll have to get some advice on that but, certainly, we’ll be as open as we can.
Senator ROBERTS: We prefer to get issues fixed for a constituent rather than to put on a show, so I’m happy to get a briefing.
Ms Court: Thank you Senator, that’s good of you. We will take you up on that.
Senator ROBERTS: I’ll ask some more questions, but just tell me if they’re appropriate or not. Why has ASIC not protected Ms Roxanne Mysko since the amended whistleblower act commenced on 1 January 2020?
Ms Court: Again, I’ll take that on notice, Senator.
Senator ROBERTS: Yes. Why has ASIC not prosecuted the CEOs of Santos, Ensign Energy, Easternwell and ECS for violence towards the safety manager and for whistleblower retaliation over the years?
Ms Court: And again Senator, I’ll take that on notice.
Senator ROBERTS: Who is responsible for the statutory duty to be upheld for whistleblower protection inside ASIC? Why has ASIC failed to protect a whistleblower when, in this case, Roxanne Mysko reported the issues to Senator Glenn Sterle—who’s a good friend of mine—when he was undertaking a Senate inquiry into how dangerous the heavy vehicle transport sector is?
Ms Court: I can answer one part of that question, if that would be of assistance? We take whistleblowing complaints very seriously. There are legal rights and protections for eligible whistleblowers, and there are some statutory criteria that whistleblowers need to come within in order to get statutory protection. Those protections have been strengthened since about the middle of 2019. We have, internally, established the Office of the Whistleblower. So, in terms of your question as to what happens to a whistleblower request when it comes in, we have a specialist team that is experienced in dealing with whistleblowers and in making sure that ASIC applies the statutory obligations that we have in relation to whistleblowers properly. The issues that you have raised would have been dealt with through that Office of the Whistleblower and, as I said, we’re very happy to talk to you and give you a briefing on what we can and can’t do.
Senator ROBERTS: I’ve looked at the remaining four questions on this topic, and we’ll cover them in the briefing.
Ms Court: Thank you.
Senator ROBERTS: Investors in the Lion Property Group are currently being denied access to the administrative remedy under the Compensation for Detriment caused by Defective Administration Scheme—the CDDA—by ASIC. They’ve been told that the Commonwealth is unable to process ASIC related Compensation for Detriment caused by Defective Administration Scheme claims. I have quite extensive questions to submit on notice, but I wish to ask now why the government is unable to proceed with the Compensation for Detriment caused by Defective Administration Scheme claims in these circumstances?
Ms Court: I don’t know if you were in the room, but Senator Bragg raised a similar issue with me earlier. There are complications about the application of the CDDA to ASIC. Just in that regard, I might have to correct the answers I gave to Senator Bragg earlier—I think I said that the CDDA did apply, but it was just that ASIC didn’t administer it. I understand now that it actually may not apply. We are very familiar with, and concerned for, the various investors that have lost money in Lion Property; I understand that has been a very significant issue. But, in relation to the CDDA, it’s not clear that it does apply to ASIC. In any event, those complaints are not dealt with by ASIC—as would be appropriate, of course.
Senator ROBERTS: Who deals with them?
Ms Court: The Department of Finance would deal with them if they applied. Is that right? I’ll hand over to Mr Gregson.
Mr Gregson: That’s right. The relevant department for those inquiries is the Department of Finance.
Senator ROBERTS: Are you sure about that?
Mr Gregson: That’s my understanding—that would be the prime body.
Senator ROBERTS: Thank you.
