Investors Sovereign Wealth Funds
March 14, 2012
Controversy Over Australia Future Fund's New Head
A political squall has blown up over irregularities in the process by which Australia’s Future Fund, the country's $77 billion sovereign wealth fund, appointed David Gonski as successor to chairman David Murray.
By Loch Adamson
In six short years, Australias Future Fund has gained a reputation as a leading force for transparency and good governance in the big money world of sovereign wealth funds. So theres no small irony that critics are saying the government has ignored those principles and interfered with the leadership transition at the A$73 billion ($77 billion) fund.
David Gonski, one of Australias most powerful, well-connected businessmen, has been named as the new chairman of the Future Fund, replacing its founding chairman David Murray, who will step down on April 2. The decision, which was formally announced on Wednesday in a joint press release from Treasurer Wayne Swan and Minister for Finance and Deregulation Penny Wong, has sparked immediate controversy and raised the possibility that the Future Fund, which has earned a reputation as an exemplar of good governance, may not be immune to political meddling. ....