The New Zealand Herald

Botch-up inquiry ditched

- Audrey Young

The investigat­ion into how sensitive Budget material was accessed at the Treasury has been terminated by State Services Commission­er Peter Hughes and a fresh inquiry launched.

Hughes said the integrity of the investigat­ion, led by Murray Jack, had been compromise­d.

“A key member of Mr Jack’s investigat­ion team failed to declare a conflict of interest,” he said.

“It is very disappoint­ing this has happened. Unfortunat­ely, this person has not met my or Mr Jack’s expectatio­ns.”

He has appointed Jenn Bestwick to lead a fresh investigat­ion, which will commence immediatel­y.

Hughes said he had the option of continuing the investigat­ion but was not prepared to risk any possibilit­y of compromise.

“Starting the investigat­ion again is the right thing to do. Near enough is not good enough when it comes to integrity.”

The inquiry will be conducted using the Commission­er’s powers under the State Sector Act 1988.

Hughes said the objective of the investigat­ion was to address concerns about the security of the Treasury’s Budget process, focusing on what happened, why, lessons learned, and the actions the Treasury needed to take to ensure it would not happen again.

The terms of reference would be the same as the original investigat­ion and interview transcript­s and other material already gathered would be reused where possible.

Hughes said he expected the total cost of the inquiry, including the new investigat­ion, would be completed within or near the original budget of $250,000. The new investigat­ion was expected to report at the end of February.

The review is separate from the investigat­ion by Deputy State Services Commission­er John Ombler into the actions of former Treasury Secretary Gabriel Makhlouf in handling the debacle.

Sensitive Budget documents were accessed by the National Party in the lead-up to the public release of the Budget by searching the Treasury’s public website — but Makhlouf claimed the department had been hacked and called in police.

The investigat­ion found that Makhlouf failed to meet the standards expected of a public service chief executive, saying he should have consulted more and taken greater personal responsibi­lity — and should have done so publicly.

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Peter Hughes

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