The judge overseeing the Royal Commission into misconduct in the financial sector has urged more victims to come forward with evidence, even if they have signed private settlements with banks that include confidentiality clauses.
Nationals senator John Williams, who was instrumental in forcing the Turnbull Government to order the investigation, has voiced concerns a large number of victims might be “too scared” to come forward and risk legal action.
But at the opening of the first hearing in Melbourne on Monday, Commissioner Kenneth Hayne said there were already laws to protect witnesses.
prohibits anyone from inflicting “any violence, punishment, damage, loss, or disadvantage to any person” for appearing as a witness.
“Suing the person would almost certainly fall within that prohibition,” Commissioner Hayne told the hearing.
Nationals senator considers intervention
Senator Williams said he was considering a last-minute plan to protect would-be witnesses with parliamentary privilege.
He said he was considering setting up a Senate inquiry to accept evidence and forward it to the Commission, avoiding the risk of legal action from banks.
Many victims of misconduct by banks, insurance brokers and superannuation firms have already signed private settlements, which normally include confidentiality clauses.
The Big Four banks – including the Commonwealth Bank, which has been at the centre of many of the recent scandals – have already promised not to sue any victims or former employees.
But Senator Williams says the protection needs to extend to victims of dozens of remaining smaller banks, regional banks and insurance brokers bound by a similar arrangement.
“We’ve got to have a clean sweep here so people can come forward with total confidence, without fearing being sued and losing their house,” Senator Williams said on Monday morning.
The backbench senator’s comments came before the Commissioner’s comments assuring witnesses they would be protected under existing law.
SBS News has contacted Senator Williams to see if his concerns were allayed but has not yet heard back.
The senator said he would prefer all institutions to match the promise from the Big Four.
But he said a Senate inquiry was a backup option.
“Otherwise we’re going to get people too scared to come forward, maybe very important evidence of fraud or corruption … which will make a bit of a farce of the Royal Commission,” he said.
Senator Williams said he had not discussed the idea with other parties.
Commissioner Kenneth Hayne replied to a letter from Senator Williams last week and said he would not be “changing the rules”, according to the senator.
The Nationals senators have also raised the matter with Attorney-General Christian Porter and are waiting for a response.
The national investigation into wrongdoing by banks, superannuation funds and insurance firms was announced by the Turnbull Government late last year, when it finally caved to pressure from Labor, the Greens and a group of its own Nationals members.
Banking lobby 'expects' remaining banks to offer protection
The Australian Bankers' Association said the promise from the Big Four was iron-clad, and suggested the remaining firms would soon follow suit.
ABA president Anna Bligh said Suncorp Bank and Bendigo Bank had already agreed to match the promise not to sue victims.
"All other non-majors are currently giving consideration to this, and I would expect that we will see the same," Ms Bligh told ABC News.
The national investigation into wrongdoing by banks, superannuation funds and insurance firms was announced by the Turnbull Government late last year, when it finally caved to pressure from Labor, the Greens and a group of its own Nationals members.
