Starting out as a humble audit clerk who migrated to Western Australia from India in 1966, to being unwittingly embroiled in one of Australia’s most infamous political scandals – throw in a few assassinations and Howard Rosario’s career would make rather a gripping novel. It was his exposure to the complexity of government operations, upholding fiduciary responsibility, and tackling unethical practices that made Howard the perfect front man for the Government Employees Superannuation Board (GESB).
He stepped into the position in 2012, just 2 years after the state government’s decision to reverse the mutualisation of the superannuation fund for its public servants, after it had see-sawed between creating a competitive private superannuation fund and remaining a state-run institution. 5 years on, and Howard is about to step down from the CEO position. “Now, at the end of my 5-year term, I feel that this challenge is better undertaken by someone who, with the benefit of relative youth, can commit for a longer term and bring fresh eyes, expertise and experience.”
Climbing the ladder
Turn back the clock to January 1972 and a young Howard began his professional life at a chartered accountant firm, starting as an audit clerk. Over the next few years, he climbed the ladder to eventually become a partner in the company’s Business & Tax Services division. “This was at the height of the tax-avoidance schemes and it appeared the challenge was principally about tax minimisation,” Howard explains. “I felt uncomfortable with that, so I chose to leave after only 2 years.”
Soon after, in 1981 somewhat scarred by the workings of the private sector, he turned to a mid-level accountant position in the Commonwealth government-owned Phosphate Mining Company of Christmas Island Limited. “That role made me appreciate what it was like to work in the lower levels of an organisation,” says Howard. “All of my knowledge was suddenly completely disregarded by people who thought, ‘He’s just a bean counter; what would he know?’ While I hated the experience, I learned that everyone you work with has to be paid attention to and respected if you want to get things done.”
All of my knowledge was suddenly completely disregarded by people who thought, ‘He’s just a bean counter; what would he know?
The Commonwealth’s phosphate-mining activity on Christmas Island was the main source of cashflow into the region’s small economy at the time, but achieving the delicate balance between running a commercial operation while still fulfilling government obligations to the community proved challenging. The Commonwealth instigated appropriate community structures, but employee expectations of normal Australian living standards on Christmas Island saw unions demand improved payment and housing of the mine’s workers.
“Ensuring people were paid, housed and treated the way any Australian would expect ultimately put a strain on the commercial operation, so they announced mass redundancies by 1984,” says Howard. Facing catastrophic shut-down losses of $26 million, the company underwent major change, and Howard was kept on board as the new chairman’s assistant and board secretary to help with the change management, and negotiate with all stakeholders on how best to cover costs.
You can’t solve problems in silos
In 1987, Howard was then appointed CEO of the new organisation, by which time the Christmas Island mining operation was being undertaken by a statutory authority, as the government recognised it was impossible to look after the interests of the community as well as effectively run the mine through a company.
“The complexity of the task taught me that every issue must be approached in a holistic way, with an understanding of how things would impact on the whole network of connections. You can’t solve problems in silos.” At the end of that year, the Commonwealth effected an economic withdrawal from the mining operation without significant industrial turmoil.
Meanwhile, the Western Australian Government was involved in business dealings which led to losses of around $1.5 billion to the WA economy, plus the insolvency of several large corporations. The scandal would come to be known as WA Inc, and spurred a Royal Commission into the commercial activities of the WA government.
Howard was drawn into this mess in 1988 as secretary of WA Government Holdings Ltd (WAGH), as the WA Government endeavoured to assist struggling enterprises facing potential insolvency and subsequently helping to defend the company against thelitigation that ensued and responding to Royal Commission inquiries. “Having been part of something that turned out to be so challenging for the government and the community, I learned a lot about why it’s best to be in a position where the truth is self-evident,” he says.
Superannuation for a better retirement
It was while caught up in the throes of the WA Inc scandal that Howard also began his first foray into the superannuation world, becoming the company secretary of the trustee of Westscheme to help renegotiate the fund’s outsourced administration contract. He would eventually be appointed as the fund’s inaugural general manager in 1993, then later its CEO. His time with Westscheme spanned the period when the Superannuation Guarantee Scheme evolved from an aspiration to a $1-trillion industry. “Actually, when I first joined Westscheme, I knew absolutely nothing about the administration of superannuation funds,” says Howard.
Nevertheless, Howard grew Westscheme from its nascent stages – when it had less than $10 million in funds under management, and fewer than 18,000 members – to have 215,000 members entrusting nearly $3.5 billion, without any capital funding. A decision made by the trustee board on Howard’s recommendation saw Westscheme officially merge into AustralianSuper in June 2011, to better serve the best interests of its members.
When I first joined Westscheme, I knew absolutely nothing about the administration of superannuation funds.
“I had the privilege of leading Westscheme until 2011 with the unwavering purpose of serving the best interests of its members, rather than any institutional imperative,” Howard says. Westscheme’s functions were substantially outsourced. Howard learned that successful outsourcing was founded in partnerships of mutual benefit. He continued this at GESB with service providers who included Link Group and AIA. Howard was appointed CEO of GESB in January 2012.
There he spent 5 years leading the fund’s implementation of the WA Government’s superannuation reforms recommended in ‘The Whithear Report’, which reversed plans to privatise GESB retaining around $500 million for taxpayers. “During my stewardship, GESB’s investment portfolio grew from $13 billion to $24 billion and efficiently served around 280,000 contributors and about 100 state employers,” says Howard.
“The opportunity to serve people who entrust you with their retirement savings is amazing. The industry has been able to give beneficiaries a better lifestyle in retirement than that afforded to them by the age pension; now it can be positioned to further advance the dignity with which they can see those years out.”