Public official suspected of massive credit card abuse

By Vanessa Tripodi

Corporate and government credit cards are issued to senior members of staff to give them the freedom to cover the expenses involved in the course of their work. However, those in public office and positions of power have been known to abuse those credit cards. In the process, they not only disgrace themselves, but also it makes for big news when they're caught.

Most recently, Allyson Grant, chief financial officer of the Pilbara Development Committee, has been accused of using government-issued credit cards for her personal expenses. In July 2009, Grant was charged by Western Australia's corruption watchdog with 12 counts of stealing more than $20,000 worth of goods. An additional eight charges were made later that month. Those charges relate to a total of over $100,000, which Grant is suspected of spending on artwork, designer-label clothing, a computer and software, a television and various home wares from July 2007 to November 2008. Grant has been released on bail and will reappear in the Perth Magistrates Court in October 2009.

In May 2009, Sydney Ferries CEO Geoff Smith was forced to step down during an investigation by the Independent Commission Against Corruption (ICAC) of his alleged misuse of a government-issued credit card. Smith was initially being investigated for credit card charges totalling $50,000, despite earnings of between $284,000 and $357,000, according to the Sydney Ferries 2007-08 annual report. At the ICAC hearing in June 2009, it was revealed the true expenses were more than $230,000, which included groceries, private school fees, alcohol and club memberships. Smith already owed $1.4 million on his mortgage and was further crippled financially by his wife's medical bills. Despite signing several documents that stated his corporate credit card was not for personal use, Smith said he was unaware the cards were not for personal expenses. Since then, Smith has repaid $135,000 and says he intends to repay the remaining balance.

In December 2008, two more high-ranking Western Australian public servants were charged with falsifying invoices and stealing money from the Department of Industry and Resources. Antony Roy Chapman, WA technology park manager, and Joy Johnson, a public servant, were charged with stealing when $1.2 million earmarked for Western Australia's premier technology development centre went missing.

Back in New South Wales, Jeremy Bacich, a mid-level public servant in the Premier's Department, was charged with credit card fraud after spending thousands of dollars on a departmental credit card. In 2002, Bacich pleaded guilty to 33 fraud related charges, including 27 charges of obtaining money by deception. It was revealed that Bacich misused the departmental credit card to fund his personal drug addiction.

While most of us are worried about making our monthly credit card payments, as well as the rising incidences of identity theft and credit card fraud, it appears that Australians should also be concerned about how our public officials are using, or misusing, their professional credit cards, and our taxes.

Article by Vanessa Tripodi

Published: August 14, 2009