Editorial:

Corrupt and greedy "larrikin capitalists"

It appears we are now all expected to be in thrall to the 
latest mass entertainment invention, the Larrikin Capitalists. 
But the Rivkins, Bonds and Richardsons are not just "mates", 
"larrikins", and personalities who make "good TV".

Graham Richardson — "Richo" or "The Fixer" as his mates and the 
media like to call him — was for several decades one of the most 
powerful men in the Labor Party. An affable public service clerk 
from a staunchly Catholic family of humble working class origins, 
he began his trade union career under the wings of rabid right-
wing, anti-communist National Civic Council figures — Groupers 
as they were then called.

He became Secretary of the NSW ALP, a Senator and Cabinet member 
in the Hawke and Keating Governments and today is believed to 
have millions of dollars in secret bank accounts. He made lasting 
friendships with leading business figures such as Frank Lowy, 
Kerry Packer (whose payroll he is on) and Alan Bond. Much of his 
power within the ALP came from his extraordinary fund-raising 
capabilities — apparently still considered an asset as he is 
billed as MC for the ALP's big corporate fundraiser this week, 
despite all the scandal and allegations surrounding his name.

According to allegations in the Australian Financial 
Review, (FR), Richardson's close associate, stockbroker Rene 
Rivkin, has been using secret Swiss bank accounts to trade in 
Australian shares on behalf of himself, Richardson and Qantas 
director and former Packer executive Trevor Kennedy. Rivkin also 
had a rub with the law when he was found to be selling shares 
that he had recommended for purchase to 17,000 subscribers in his 
weekly newsletter. He has only served one night of a nine-month 
weekend detention sentence for insider trading.

The Australian Securities and Investments Commission (ASIC) is 
very interested in several of the Swiss bank accounts, and has 
for years been trying to establish the beneficial owners of them. 
It became interested when a former Packer printing plant (Offset 
Alpine) valued at $3 million went up in flames and its owners 
received a $53 million insurance payout. These particular Swiss 
bank accounts held 38 percent of the company's shares — a 
controlling interest. Because of tight Swiss banking laws, ASIC 
came up against a brick wall in its investigations.

The FR alleges that Rivkin, Richardson and Kennedy are the 
owners of these shares and that Rivkin holds secret accounts on 
behalf of Richardson and Kennedy. Shares are bought and sold on 
Australian markets using nominee companies, operating beyond 
public scrutiny and Australia's already very limited share 
disclosure and ownership laws.

"Trading the sharemarket using the secrecy of Swiss accounts is 
what has been called the world of the 'Robot Arm'. This is the 
offshore bank account that enabled Rene Rivkin to turbo-charge 
his trading profits", according to the FR. "As Offset Alpine 
shows, the ultimate owners of shares could control a parcel that 
was well above the level requiring a substantial shareholder 
notice to be sent to the ASX [Australian Stock Exchange] — 
usually 5 per cent." (31-10-03)

These practices are not isolated incidents. The public have been 
given a tiny glimpse at the "Robot Arm" world through the 
revelations concerning a couple of Rivkin's, Kennedy's and 
Richardson's bank accounts.

Deregulation, privatisation and "free market" economic policies 
have created the environment for the manipulation of markets by 
sharks hiding behind nominee companies. Privatisation means 
"commercial in confidence" replaces public accountability. Who 
knows who owns Australia? Who are the other figures hiding behind 
nominee companies or holding shares on behalf of their mates? 
They use their money to buy politicians and ensure their freedoms 
and activities are not curtailed. They are to be found in both 
the Liberal and Labor Parties. Larrikins? No. It is all about 
bribery and corruption — parasites who feed off workers' hard 
earned savings. They did not create the millions in their secret 
bank accounts.

They are using and risking the superannuation funds of workers 
and retirees — much of it invested in shares. When companies go 
bust, get taken over or restructured, it is workers who lose 
their entitlements, their retirement savings and jobs.

The most recent revelations are only the tip of the iceberg. The 
"Robot Arm" of capitalism is very much part of the real 
capitalist world with direct implications for working people.