In the land of policy rent-seeking it’s not easy to find new lows but today we have one, from The Australian:
Foreign Investment Review Board chairman Brian Wilson has accepted a role as adviser to the $180 billion private equity giant, the Carlyle Group, potentially putting the former investment banker in conflict when it comes to giving the green light or blocking key foreign investment moves.
The US-listed, Washington-based private equity group, which has completed more than $2bn worth of deals in Australia and more than $20bn worth in Asia, yesterday said Mr Wilson would become a senior adviser to its Asian buyout team.
However, Mr Wilson, who plans to remain in his current role at FIRB, has promised to stand aside from any decision involving Carlyle, the private equity fund that has a string of investments in Australia and through Asia.
…The Sydney-based Mr Wilson will be working with Carlyle’s Asian buyout team looking for new investment opportunities in Australia and the region.
…Scott Morrison said FIRB had “strong procedures in place to manage conflict”.
Yesterday I kissed off Mr Wilson on the assumption that his inept reign at FIRB was over given his new role at Carlyle. How silly of me.
For Mr Wilson to have no conflict he will have to stand aside on every single FIRB decision, given all of them will potentially give Carlyle the inside run on what competitors are doing. And what, is he never going to talk to his staff?
That this is not screamingly obvious to Treasurer Morrison says something very unfortunate about his public policy values and judgement.
