Otago Daily Times

Auditorgen­eral standing down pending inquiry

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WELLINGTON: The man tasked with preserving trust in the highest levels of government has been forced to stand down while his handling of a major fraud scandal is investigat­ed.

In a highly unusual case, Auditorgen­eral Martin Matthews volunteere­d to step aside so his suitabilit­y for the role could be reviewed by an independen­t investigat­or.

A crossparty group of MPs agreed with Mr Matthews’ request yesterday, as ongoing revelation­s about his oversight of a fraud case at the Ministry of Transport placed increasing pressure on one of the country’s top watchdogs.

‘‘I think what is at risk here is the integrity of the Office of the Auditorgen­eral,’’ Speaker of the House David Carter said yesterday.

Senior public servant Sir Maarten Wevers will lead the review into Mr Matthews’ suitabilit­y for the job, and is expected to report back within a fortnight.

Over the last week, Opposition MPs had raised concerns about whether Mr Matthews failed to pick up or act on fraudulent activity in his former role as Secretary of Transport.

Mr Matthews led the transport ministry during the period former senior manager Joanne Harrison stole $750,000 through fake invoices. She was jailed for three years and four months in February.

Earlier this week, Mr Carter stood by Mr Matthews, saying the Serious Fraud Office had described his performanc­e as exemplary during the fraud investigat­ion into Harrison.

Mr Carter yesterday said he still had complete confidence in Mr Matthews.

‘‘No informatio­n has been presented to me that leaves me to doubt that confidence,’’ he said.

That position was echoed by Assistant Speaker and Labour MP Trevor Mallard.

‘‘We’re not going to hang the Auditorgen­eral without a proper look,’’ he said.

Mr Matthews is answerable to Parliament, not the Government, and his appointmen­t earlier this year was supported by all parties.

The appointmen­t process took the extraordin­ary step of hearing from the Serious Fraud Office about Mr Matthews’ handling of the Harrison case.

However, the SFO’s briefing was limited to events after April 2016, when the agency opened its case into Harrison.

Documents released since Harrison was convicted show that ministry staff had alerted Mr Matthews to Harrison’s unusual activities as early as 2013.

In a statement, Mr Matthews said he stood by his actions, which were based on the informatio­n available to him at the time.

‘‘However, the current media coverage about these matters has the potential to undermine the important constituti­onal role of the Controller and Auditorgen­eral.’’

Deputy Auditorgen­eral Greg Schollum will take over while Mr Matthews is being investigat­ed.

Earlier yesterday, the State Services Commission announced it was taking over an inquiry into whether staff at the ministry lost their jobs after raising concerns about Harrison’s behaviour. That inquiry had previously been led by the transport ministry itself. — NZME

 ??  ?? David Carter
David Carter
 ??  ?? Martin Matthews
Martin Matthews

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