The HIH collapse is a long way from disappearing from the public spotlight, with the Federal Government announcing last week it will put up an extra $14 million to fund the prosecutions of major figures in the case. The Commonwealth Director of Public Prosecutions will work with the Australian Securities and Investments Commission (ASIC) to sort out the cases.

ASIC has already been allocated an extra $17.5 million in 2003/04, and $10.7 million in 2004/05, to undertake the task.

Treasurer Peter Costello says criminal prosecutions linked to HIH’s collapse will be tried under the Corporations Act and the NSW Crimes Act.­“The Government intends to allocate additional funding of $14 million over three years to the Commonwealth Director of Public Prosecutions (CDPP) to undertake criminal prosecutions,” he said.

The powers of the CDPP “are extensive and provide the best opportunity for the efficient prosecution of HIH cases”, he said. The CDPP will be assisted by two senior counsel and two junior counsel to advise on referred matters.

Justice Neville Owen’s long-awaited HIH Royal Commission report identified 17 individuals and 56 possible breaches of the law that were referred to either ASIC or the NSW Director of Public Prosecutions.