ANZ completed probe into Hisco's expenses before staff were told of sick leave

Tuesday, 18 June 2019

ANZ staff are said to be furious that they've been helping to pay for their chief executive's lavish lifestyle while they've struggled for a pay rise.

ANZ concluded its investigation into David Hisco's expenses before telling staff its former chief executive was on extended sick leave.

On Monday, ANZ New Zealand chairman Sir John Key announced that Hisco was leaving the bank amid an investigation into the way personal expenses had been characterised.

Key said that personal spending had been recorded as business expenses, naming the examples of chauffer driven cars and wine storage in Australia. The amount in question was put in the 'tens of thousands' with Key suggesting the total figure was in the order of $50,000.

On May 29, ANZ told staff its New Zealand chief executive David Hisco was on extended sick leave. The same day it told the Reserve Bank of the outcome of an investigation into potential discrepancies with his expenses.

Although ANZ said it had acted transparently on the issue, Finance Minister Grant Robertson said it had questions to answer around whether it had kept the regulator, the Reserve Bank, properly informed.

* Profits, strikes, settlements and huge paypackets: The ANZ career of David Hisco

* Former BNZ chairman calls for Sir John Key to be forced to resign

* Reserve Bank censures ANZ for 'persistent weakness in process'

* ANZ chief executive leaving following review of personal expenses**

A new timeline suggests Hisco's sick leave was announced to staff after the bank concluded its investigation.

On May 29, Antonia Watson, head of retail and business banking, told staff that she had been asked to be acting chief executive while Hisco was away.\

Do you know more? Email newstips@stuff.co.nz

'So long as he slows down and takes some time off to recover. David has told me he's keen to get back to work as soon as possible but realises how important his health is. We obviously all wish David a speedy recovery.'

Reports of the letter to staff make no mention of any investigation into Hisco's spending.

On the same day, ANZ informed the Reserve Bank and the Australian Prudential Regulation Authority (APRA) about the expense issue, having already 'thoroughly investigated' the 'potential discrepancies'.

'When ANZ was sure via its investigation that it sufficiently understood the issues involved it promptly informed APRA and the [Reserve Bank] on 29 May,' an ANZ spokesman said.

'About two weeks earlier, the [Reserve Bank] had been given a brief heads up by ANZ that it was looking at a potential issue that it might need to go to the regulators on.'

A spokeswoman for the Reserve Bank confirmed that ANZ informed the Governor late on May 29.

'The matter is still being discussed with the ANZ and the Reserve Bank will generally not comment on ongoing matters,' the spokeswoman said.