Former groceries boss Brad Banducci was threatened with 6 months jail today for refusing to give a straight answer to questions about Woolies’ profits when grilled before the Senate. What’s the scam?
The scam is good! Too many bigwigs spurn parliamentary inquiries, giving tricky dishonest answers, refusing to answer, taking ‘questions on notice’, even not bothering to front up. American chief of gas fracker Tamboran Resources chief Joel Riddle didn’t front, despite pocketing millions in Australian Coalition government grants.
Parliament, like the courts, has contempt rules which, if spurned, carry a possible jail sentence but they are never enforced, much to the chagrin of senator turned MWM commentator Rex Patrick who listed some examples here.
The hot point in the contretemps between Senator Nick McKim and Banducci came when Banducci stubbornly tried to spin the senators “with respect”.
Nick McKim roasts Woolworths CEO Brad Banducci for refusing to answer on Woolworths’ Return on Equity figures.
McKim “Are you struggling with the ordinary English language meaning of the words that I’m using in my questions?”💥#Senate [1/3] pic.twitter.com/mdkYwS58us— stranger (@strangerous10) April 16, 2024
Banducci kept saying “with respect’ we look at “return on funds” etc “which is the key measure” of profitability. “We are not interested in that,” said McKim again. We are interested in the massive profits that Woolies is making at the expense of its suppliers, its customers and its staff. “You are price gouging. Why won’t you answer a simple question about what your ROE is?”
The groceries chief’s stonewalling dragged on for an agonisingly long time before McKim reminded him that it was available for the senate to plonk him in jail for contempt. Then, despite being boss of the company during the period under consideration, he said he did not know.
Finally, with another huge push & shove & more warnings he may end up in jail, Banducci folds & agrees that he Does Not Know the answer on Woolworths’ Return on Equity and will take it on notice.
McKim “Ok, Thank You Mr Banducci”🙄😮💨 pic.twitter.com/pUNiqRE9Bc— stranger (@strangerous10) April 16, 2024
Banducci, who was paid $8.4m last year on Woolies profit of $1.7B, presumably did not want to answer the question because as McKim noted, an ROE of 26% made Woolies look more profitable than even the big banks, which “are the most profitable in the world”.
It was a terrific exchange. There should be more of it from our elected representatives rather than the normal pussy-footing about when it comes to holding people with corporate power to account.
This from Rex Patrick last year (Defence chiefs are big culprits):
Across my time in and around the Senate I witnessed contempt after contempt.
- On November 17, 2014, the Senate ordered the production of an economic modelling report into the impact of the future submarine project on the Australian economy. The Senate was refused access to it. I later obtained it using Freedom of Information (FOI) laws.
- On October 9, 2016, the Senate ordered the production of the French submarine design and mobilisation contract. The Senate was refused access to it. I later obtained it using FOI.
- On September 4, 2017, the Senate ordered the production of the Future Frigates. It had been given to overseas shipbuilders, but the Senate was refused access to it. I later obtained it under Freedom of Information laws.
- On November 16, 2017, the Senate ordered the production of information relating to Murray-Darling strategic water purchases. The government withheld crucial valuation information which, wait for it, was later released to me under FOI.
Michael West established Michael West Media in 2016 to focus on journalism of high public interest, particularly the rising power of corporations over democracy. West was formerly a journalist and editor with Fairfax newspapers, a columnist for News Corp and even, once, a stockbroker.