AG steps aside ‘to save role’s reputation’
Auditor-General Martin Matthews will stand down from the role while a review into his suitability for the job is carried out.
Cross-party MPs on the Offices of Parliament Committee decided unanimously to review Matthews’ position in response to a request from him to do so, said Speaker of the House David Carter.
Matthews agreed to stand aside in favour of his deputy, Greg Schollum, while the independent review – expected to take two weeks – is completed. Senior public servant Sir Maarten Wevers will conduct the inquiry.
The committee, which appointed Matthews to the job, met yesterday to discuss his handling of fraudster Joanne Harrison while he was chief executive of the Ministry of Transport (MOT).
Harrison, a former MOT senior manager, was jailed in February for defrauding the ministry of $750,000.
While Carter said the decision to carry out a review was unanimous, NZ First leader Winston Peters said that wasn’t the case.
MP Clayton Mitchell represented NZ First at the committee and ‘‘made it clear’’ that ‘‘we wanted to discuss the appointment and the terms of reference as a party and with the party’s leader’’, Peters said.
The rushed timeline was not good enough and Peters said he would not allow the inquiry to be ‘‘rammed through the committee’’.
‘‘Any system that thinks it can get away with that sort of accountability can think again,’’ he said.
Matthews said he stood by his actions while at MOT and ‘‘know that I acted appropriately based on the information available to me 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,’’ he said.
‘‘I am firmly committed to protecting the standing and reputation of the office of the auditorgeneral. While the review is under way, I am standing aside in favour of the Deputy Controller and Auditor-General, Greg Schollum’’
Carter said following the meeting that he continued to have ‘‘complete confidence’’ in Matthews.
‘‘No information has been presented to me that leaves me to doubt that confidence. I think what is at risk here is the integrity of the Office of Parliament of the Auditor-General.
‘‘I’ve been becoming increasingly aware that it was a trial by media, with allegations out there to which Martin Matthews was not given an opportunity to respond.’’
Carter said he hoped the inquiry would result in having an auditor-general that ‘‘Parliament has confidence in’’.
‘‘(Matthews) is in a very difficult position where allegations have been made, he’s addressed to me he disagrees with those allegations – this is the fairest way of getting them examined by somebody who is completely independent.’’
Carter said he expected MOT to completely comply with the investigation.
‘‘[Wevers] needs to go back as far as he needs to to feel comfortable in deciding whether the current auditor-general is suitable to continue in this role following some of the allegations that have arisen recently in the media,’’ he said.
A letter from Labour leader Andrew Little to Carter on Monday asking the committee to have another look at Matthews’ appointment prompted the committee to act.
Further to that was a letter from Matthews saying ‘‘he was concerned about the damage being done to the integrity of the office with this issue not being resolved’’, Carter said.
As part of his inquiry it is expected Wevers will talk to the State Services Commissioner and Serious Fraud Office in addition to MOT.
Labour MP Trevor Mallard, who also sits on the committee, said he had not seen anything that ‘‘would cause us to withdraw our confidence’’ in Matthews.
‘‘We’re not going to hang the auditor-general without a proper look,’’ he said.
Carter said the committee was ‘‘extremely diligent’’ when it appointed Matthews.
‘‘It was an extraordinary step for the committee to ask the Serious Fraud Office to appear before it but we felt that was necessary to satisfy us as to his suitability for the appointment.’’
The inquiry comes after the State Services Commission announced yesterday it would investigate the treatment of whistleblowers in the MOT fraud case amid the mounting pressure for the auditor-general to stand down.
State Services Commissioner Peter Hughes said yesterday that he was taking over the investigation responsibility from the ministry on the back of public concern.
‘‘Public servants must be able to raise concerns without fear of punishment or reprisal,’’ Hughes said.
‘‘If public servants raised genuine concerns through proper channels and were then disadvantaged in any way because of it, that would be completely unacceptable and something I view very seriously.’’
‘‘Any system that thinks it can get away with that sort of accountability can think again.’’ NZ First leader Winston Peters