Australia: Transparency body to raise understanding of ‘single desk’s’ operation
The next stage in enhancing the transparency of ABB Grain’s legislated barley pools (the single desk) has occurred with the first meeting last week of the SA Barley Single Desk Transparency Committee, ABB announced on November 24.
The creation of this committee continues the commitment by ABB to the South Australian Farmers’ Federation in August for a three-pronged approach to improving transparency for the single desk, by publishing a Pool Performance Report (released earlier this month), appointment of an independent auditor to review operations of the desk, and allowing third party access to the pool by traders.
The six-member transparency committee has three ABB Grain Export directors – Trevor Day, Adrian Glover and Max Wilksch – and three members from SAFF: Garry Hansen, James Rackham and Peter Treloar.
The committee at its November 16 meeting unanimously elected Mr Rackham as its chairman. Members will meet again next Tuesday during which it’s expected the details of the audit process will be finalised.
The role of the committee, as a result of the auditors reports, will be to ascertain the integrity of systems put in place by ABB Grain Export Ltd in its management of the SA barley single desk.
It’s not the role of the committee or auditors to provide a view on the benefits of single desk marketing.
At the committee’s inaugural meeting, Ernst & Young was appointed as independent auditor to review the operation of the desk and, if necessary, provide recommendations to enhance transparency and management of the pool.
Ernst & Young will conduct an external audit the financial statements for ABB’s Pool Performance Report and conduct quarterly transaction transparency audits. The main objective of the quarterly audits is to provide stakeholders with comfort that SA barley pool transactions are undertaken on a fair and reasonable basis. The first quarterly audit is scheduled to take place in February.
Ernst & Young has considerable understanding and experience of ABB pool operations and associated agribusiness issues having previously operated as an external auditor of ABB and AusBulk.
Meanwhile, at close of business last Friday, four companies had registered interest in applying for third party access to the SA barley pools.
Under the three-pronged strategy to enhance transparency of the single desk, third party access would enable traders to access the pool with a 5000-tonne daily limit for non-growers. There would be no daily limit for growers.
Înapoi
(libra 0.8750 sec.)