Rogue bankers took bribes, hearing told

ROGUE National Australia Bank staff falsified documents to secure mortgages for customers in return for cash bribes paid across the counter, the banking royal commission has heard.

Counsel assisting the commission Rowena Orr, QC, yesterday turned a blowtorch on the NAB “Introducer” program, in which the bank pays commissions to businesses that refer customers who then take out loans.

The alleged network of rogue bankers operated in five branches across greater western Sydney, the commission heard.

It was the first session for a two-week public hearing examining consumer finance products as part of the yearlong commission into misconduct in financial services.

Questioning NAB execu- tive general manager for broker partnerships Anthony Waldron, Ms Orr noted the Introducer scheme had generated $24 billion in business.

But it had been marred by rorting, she revealed, including cases where pay slips were forged, bribes paid to staff, and customers’ signatures faked.

While the program was meant to be for businesses such as financial planning, architectural and real estate agencies, Ms Orr said there were instances of gym instructors acting as “introducers”.

“Let’s be frank: there was fraudulent conduct by [some] NAB bankers and introducers,” Ms Orr put to Mr Waldron. “Yes,” he said. Mr Waldron was appointed to his current role in 2016 after the problems were discovered.

One whistleblower contacted NAB in October 2015 and said there was a network of five rogue branches in greater western Sydney, the commission heard. Staff embroiled in the scheme included some managers, that person said.

Bribes of $2800 were paid “in white envelopes over the counter” at some branches, it was alleged.

“People are being promoted on the basis of home loans and lending — it appears they are smashing targets but some of it is false,” said one whistleblower email read by Ms Orr.

Last November, NAB revealed it had sacked 20 bankers in Melbourne and Sydney and taken action against 32 others.

The Commonwealth Bank was also scolded for handing over inadequate material on past misdeeds.

“[The first CBA submission] had a high level and general approach. It did not go into detail as a number of other entities had done,” Ms Orr said.