Boss quits in wake of ministry’s huge fraud

A report into Auditor-general Martin Matthews’ actions as head of the Transport Ministry now appears likely to be withheld, after he resigned hours before its release.

Matthews was head of the ministry during the time Joanne Harrison carried out fraud on taxpayers to the tune of $725,000. Harrison was jailed for three years and seven months in February.

The report by Sir Maarten Wevers into how the ministry handled the fraud was due to be released yesterday afternoon. In a statement Matthews said he had tendered his resignation as controller and auditor-general.

‘‘The issues and speculation about how I handled matters in relation to the fraud committed on the Ministry of Transport during my term as CEO have made it untenable for me to continue in this role,’’ he said.

‘‘I deeply regret and apologise for the fraud that was committed by an accomplished fraudster when I was secretary for transport, prior to my appointment as controller and auditor-general.

‘‘I wished it had never happened but I accept I am accountable for everything done in and by the ministry when I was CEO and I am ultimately responsible.’’

MPS on the officers of parliament committee had decided unanimously to review Matthews’ position in response to a request from him to do so, and Matthews agreed to stand aside while it was completed.

The report was finalised but its release was delayed while Matthews was given the opportunity to comment on its findings.

Matthews handed in his resignation to Speaker David Carter yesterday as the officers of parliament committee of MPS was considering the Wevers report into his actions.

In a briefing to Parliament, the committee said Matthews ‘‘tendered his resignation in writing ... with immediate effect’’.

‘‘His resignation therefore brings to an end the matter before us.’’

"The issues and speculation about how I handled matters in relation to the fraud ... have made it untenable for me to continue in this role." Martin Matthews

Public sector union the PSA called for transparency after it appeared the Wevers report had been withheld.

‘‘The New Zealand public have a right to understand the full context of Martin Matthews’ resignation as auditor-general and the content of Sir Maarten Wevers’ report into Matthews’ suitability for the role,’’ the PSA national secretary Glenn Barclay said.

‘‘The role of auditor-general is of critical importance to the running of the country, and the public need to feel that appointments to the office aren’t made lightly,‘‘ Barclay said.

Matthews said yesterday that until April 2016 he regarded Harrison as an able and high performing member of the leadership team.

‘‘I believe I acted swiftly and thoroughly to detect the fraud and bring her to justice when I became aware of her potential wrongdoing.

‘‘I wish that I had detected her criminal activity much earlier.’’