Nelson Mail

Thiel case may stiffen citizenshi­p

- HENRY COOKE

The Department of Internal Affairs suggested a tightening of the rules around ministeria­l grants of citizenshi­p after the case of tech billionair­e Peter Thiel came to light.

Then-minister Peter Dunne was interested in the proposed reforms, which included an open citizenshi­p register, but did not manage to enact them before leaving Government.

It emerged in early 2017 that Thiel, a controvers­ial backer of United States President Donald Trump, had gained New Zealand citizenshi­p despite spending only 12 days in the country as a resident. Potential citizens usually have to spend at least 1350 days in the country over a period of five years.

In 2011 then-Internal Affairs Minister Nathan Guy had granted him the citizenshi­p using a special clause in the law giving ministers discretion to waive the rules in ‘‘exceptiona­l circumstan­ces’’ that were in the public interest.

Guy was advised to grant the citizenshi­p under the clause as Thiel was a skilled and philanthro­pic investor.

Thiel had offered to assist with the establishm­ent of an Aucklandba­sed technology company and a ‘‘landing pad’’ in San Francisco to help New Zealand technology companies break into the US market. His lawyers pointed to his large investment­s in New Zealand technology companies and donation to the Canterbury earthquake recovery.

Guy said it had been in New Zealand’s economic interest to provide the citizenshi­p and that Thiel had been a ‘‘great ambassador’’ for the country – despite Thiel keeping his citizenshi­p secret for six years.

Soon after the citizenshi­p came to light the Department of Internal Affairs (DIA) briefed then-minister Dunne on steps he could take to tighten up the process and make it more transparen­t.

‘‘There is an opportunit­y to make changes that will help address possible perception­s of undue influence, and better ensure public confidence in the citizenshi­p process,’’ officials wrote to Dunne.

Suggested changes included an ‘‘open citizenshi­p register’’, a writing into law of which factors could be used when considerin­g ‘‘exceptiona­l circumstan­ces’’, and even setting out specific exception for activities such as vast financial investment.

Another option would be a periodic independen­t assessment of all of these decisions, which are relatively rare, by the auditorgen­eral.

Dunne said this week he was interested in some of the changes but decided to wait until a planned review of citizenshi­p laws after the election.

‘‘The chances of getting any legislatio­n prepared and passed before the election were practicall­y zero,’’ Dunne said.

Asked if the changes would have received assent from the National Party, who led the Government, Dunne said he had not reached the stage of asking them.

‘‘I was certainly not opposed to it ... the circumstan­ces of the case do give us a wake-up call to be absolutely transparen­t and as upfront as we can be,’’ Dunne said.

‘‘In the wake of the Thiel debacle a lot of stuff arose not so much about the exercise of ministeria­l discretion, but frankly how his case got so far advanced. This is someone who spent 12 days in the country.’’

Dunne thought independen­t assessment of the decisions was a good idea but suggested the Office of the Ombudsman vet the decisions rather than the auditorgen­eral. He also had concerns about the implicatio­ns of an open citizenshi­p register for those fleeing persecutio­n.

He said any minister should be able to give reasons for their decision and should be comfortabl­e with it possibly ending up on the front page of a newspaper.

New Internal Affairs minister Tracey Martin said she too was keen on tightening up the process and making sure it was transparen­t.

‘‘I think there is a conversati­on that needs to be had around transparen­cy. Particular­ly when the rules are so clearly altered by the minister or ignored by the minister.’’

She said public confidence in the system had been ‘‘rocked’’ by the Thiel case but she hoped the public would have confidence in her as a new minister.

 ??  ?? Peter Thiel
Peter Thiel

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