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Reserve Bank governor says police should have -

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ASHLEY HALL: The governor of the Reserve Bank has denied being "asleep at the wheel" over allegations of foreign bribery at the bank's note printing subsidiaries.

Glenn Stevens has appeared before a parliamentary committee investigating Australian law enforcement.

It's Mr Steven's second appearance in two months before a parliamentary committee over the scandal.

Finance reporter Sue Lannin was watching proceedings and she joins me now.

So Sue, did the Reserve Bank governor make further revelations about the foreign bribery scandal?

SUE LANNIN: Yes Ashley, actually he revealed this morning that the Reserve Bank has recently agreed on a confidential payout to Brian Hood. So Brian Hood is the whistleblower who revealed these allegations of bribery of foreign officials at the Reserve Bank's subsidiary Note Printing Australia back in 2007.

Now Mr Hood was made redundant as part of a restructure of the company, but Mr Hood in fact told the court he forced out. That was denied today by Mr Stevens and the former deputy governor Ric Battellino, who also appeared before the inquiry.

Mr Stevens told the committee that the settlement occurred quite recently after long negotiations, and Mr Hood initially claimed a large amount of money but a smaller settlement was agreed on.

ASHLEY HALL: These parliamentary committee hearings are often pretty rough and tumble affairs. Did Mr Stevens get a hard time from committee members?

SUE LANNIN: Actually most committee members were very polite, but he certainly did get a hard time from the Greens leader, Senator Christine Milne. She grilled him very rigorously on the allegations and she even asked him if he was going to step down early.

Mr Stevens said he was not going to step down early or make an early exit from his seven year term.

So as we've mentioned, Senator Christine Milne accused Mr Stevens and the Reserve Bank of being asleep at the wheel.

GLENN STEVENS: The Reserve Bank's attitude always was and is that bribery or questionable behaviour of any kind is not to be accepted.

CHRISTINE MILNE: OK and so I come back to the fact that in May 2007, the bank was told about bribery allegations in relation to agents and so on and you didn't call in the police, and I ask again, what did you think the money was being used to do?

GLENN STEVENS: There was an allegation made. There was an investigation, quite a serious one to look into that and a conclusion was drawn and then there was follow up at the other company. It was taken very seriously.

Well taken so seriously that no-one was called, the police weren't called in or ASIC wasn't informed.

ASHLEY HALL: The Greens leader, Senator Christine Milne, with the Reserve Bank Governor, Glenn Stevens.

And Sue, just a bit of a recap - bring us up to speed on developments so far?

SUE LANNIN: OK. Well the case if currently before the courts as we've talked about.

These allegations of foreign bribery at Note Printing Australia and its sister company Securency - now these are Reserve Bank subsidiaries that make bank notes - the allegations are that the companies, there were agents working for the companies in countries like Malaysia and Nepal. They demanded millions of dollars in commissions and commissions were paid to these agents and foreign officials to sell the bank notes.

The case is before the courts.

ASHLEY HALL: Sue Lannin, our finance reporter, thanks very much.