Senator Linda Reynolds was more than six months late in declaring a series of share trades on her register of interests, including one involving a defence company which had previously been awarded millions in government contracts during her time as defence minister.
Reynolds, who was defence minister until March 2021 when she became government services minister, acquired shares in Falcon Metals, Electro Optic Systems Holdings and BrainChip Holdings in October and November 2021.
Guardian Australia does not suggest that there was anything improper in the purchase of the parcels of shares, which Reynolds says were each worth less than $700.
The purchases were disclosed on 30 June, despite a requirement to disclose changes to pecuniary interests within 35 days. Reynolds blamed an “administrative oversight” for the late disclosure and said she had complied with her obligations to advise the prime minister of the transactions.
The shares in Electro Optic Systems and BrainChip were sold just weeks later, while the Falcon Metals shares were categorised as “unmarkable” (unmarketable) on 15 December.
The further alterations were disclosed at the same time, on 30 June. None of the trades were recorded on the register when voters went to the polls on 21 May.
Reynolds said she takes “all of [her] parliamentary disclosure and reporting obligations very seriously”.
“I bought and sold a small parcel of shares worth less than $700 each and made a slight loss on disposal after brokerage fees,” Reynolds told Guardian Australia.
“I fulfilled my obligations to advise the [prime minister] of all transactions.
“However, due to an administrative oversight these particular disclosures by me to the Senate were delayed. That oversight has been corrected and my register is now up to date.”
Reynolds was defence minister from May 2019 to March 2021, then served as government services minister until May 2022, when the Morrison government was defeated.
Electro Optic Systems (EOS) is a defence contractor that has won numerous contracts for its remote weapons systems, including a $94m contract announced by the commonwealth government in September 2020, while Reynolds was minister.
At the time, Reynolds lauded the plan “to equip the Bushmaster and Hawkei protected mobility vehicles within a Battle Group”.
“This capability will improve targeting, and better protect our ADF personnel while on operations,” she said.
On 13 May 2022, EOS announced the commonwealth had confirmed it as the supplier for marine remote weapons stations.
The pecuniary interest register rules state that a senator who “knowingly fails to notify any alteration of those interests … within 35 days of the change occurring … shall be guilty of a serious contempt of the Senate”.
Guidance to senators warns that if their affairs are managed by a financial or other agent, they must “ensure that they receive timely information to enable them to comply with the 35-day notification requirements”.
According to the ministerial standards at the time, ministers must “declare and register their personal interests” and notify the prime minister “of any significant change in their private interests within 28 days”.
“Failure to declare or register a relevant and substantive personal interest as required by the parliament constitutes a breach of these standards.”
Based on share price movements, Reynolds appears not to have profited from the EOS trades. Electro Optic Systems Holdings shares slumped from $3.06 on 1 November, when they were bought, to $2.33 on 21 December, when sold.
Shares in BrainChip Holdings, an artificial intelligence and neuromorphic computing company, edged upwards from $0.55 in mid-November, when bought, to $0.66 on 21 December, when sold. BrainChip shares later surged to a new high of $2.13 in mid-January, after Reynolds’ shares had been sold.
In addition to the share trades, on 30 June Reynolds also declared the deletion of Chalice Mining shares; addition of Panorama super; addition of WA Liberal party in office holdings; and deletion of residential property in Narrabundah.
The Chalice Mining shares were added to Reynolds’ register of interests on 14 December, although no dates for the purchase and sale were given.
