An alleged multimillion-dollar fraud involving a trusted NAB lieutenant and a key contractor worth millions of dollars has left executives at the highest level of the bank reeling after NSW police conducted raids on three Sydney premises on Tuesday morning.
Warrants were served on the headquarters of events management company Human Group, an accountant and the residence of Human Group founder and director Helen Rosamond to investigate an alleged scam involving overcharging and kickbacks investigated by Strike Force Napthali.
The Australian Financial Review understands the alleged fraud was discovered by the bank late last year.
The findings of an internal investigation were put to former NAB chief of staff Rosemary Rogers in December. Ms Rogers had been chief of staff since 2009 and was a trusted colleague of CEO Andrew Thorburn and former CEO Cameron Clyne.
The scope of the police investigation is expected to shift to the assets of those involved, including a boat owned by one of the parties and docked in Melbourne.
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Mr Thorburn is believed to have been shocked and betrayed by what has taken place.
"If these allegations are proved to be true it is a very serious breach of trust and banking is based on trust" Mr Thorburn said late on Tuesday in a video to staff.
Awkward time
He said he was proud of the bank and the role of banks in the community and that allegations like these hurt the reputations of both.
The bombshell has arrived at an awkward time for the bank with its processes and the conduct of its employees under the spotlight following two weeks of hearings at the banking royal commission, which revealed poor risk controls and a fraud ring operating out of its branches in western Sydney.
Strike Force Napthali was established by State Crime Command's Financial Crimes Squad after it received intelligence of corrupt commissions paid to a bank employee who authorised inflated payments to contractors.
Mr Thorburn has told the leadership team the matter was promptly reported to the police and the bank would continue to co-operate with the investigation.
"This matter has been investigated by us, and was reported quickly to Police, and we will continue to fully cooperate with them."
The North Sydney head office of Human Group, the Milson's Point accountant Thomas Hopper & Partners and a residence in Potts Point in Sydney's east were raided simultaneously, and the Strike Force seized a large number of documents, computers and electronic storage devices.
The three-storey terrace in Victoria Street, Potts Point, where the third raid took place is believed to have been the home of Helen Rosamond, the UK-born founder and director of executive projects and events company Human Group.
'No hidden agendas'
Human Group has been contracted to run events at the bank including those for the leadership team and board of directors. Human Group has charged the bank tens of millions of dollars for its services over the years.
Under a section on the Human Group's website titled "Why trust us", the business spruiks "robust and repeatable processes". Human Group declares it has "no hidden agendas" and the ability to handle matters with the "up-most integrity".
Ms Rosamond's affluent lifestyle can be seen through her social media profile where she has displayed photographs of social events. In one photograph she is holding the Melbourne Cup at an event in Flemington.
Financial Crimes Squad commander detective superintendent Linda Howlett said detectives continued to work closely with the bank to ascertain the extent of the alleged fraud.
"Our Corporate Corruption Team has been working tirelessly to track payments and other funds to determine if an offence has been committed," Det Supt Howlett said.
"From the information we have gathered so far, we know there are people who have significant information that may assist us, and we are appealing for them to come forward.
"These investigations are complex and often protracted, but it's likely even a small piece of valuable information or insight could assist us in resolving the matter swiftly."
Fraud conducted by and with the knowledge of bank suppliers has been in the spotlight this week – former Commonwealth Bank general manager Jon Waldron is expected to stand trial for his alleged role in a scam that involved the bank purchasing $10 million worth of software it did not need.
In an unusual twist, the bank was unable to be named until it identified itself as it was the victim of the alleged fraud. NAB shares rose in line with the banking sector on Monday finishing 37¢ or 1.3 per cent higher at $29.50.
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