Inquiry to review Matthews’ suitability

Auditor-General Martin Matthews will stand down from the role while an independent 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.

He agreed to stand aside in favour of his deputy, Greg Schollum, while the review, which is expected to take two weeks, is completed.

Sir Maarten Wevers will conduct the inquiry and report back to the Parliament committee.

The committee, who appointed Matthews in the job, earlier met at 4pm to discuss his handling of fraudster Joanne Harrison while he was chief executive of the Ministry of Transport (MoT).

In a statement, 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, who has all the same statutory functions and powers.’’

Speaker of the House David Carter told media 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,’’ he said.

The inquiry comes after the State Services Commission announced yesterday it would investigate the treatment of whistleblowers in the MoT fraud case amid mounting pressure for the Auditor-General to stand down. Joanne Harrison, a former MoT senior manager, was jailed in February for defrauding the ministry of $750,000.

State Services Commissioner Peter Hughes said yesterday 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.’’

Hughes said ‘‘given the public interest’’ he’d made the call to investigate whether any Ministry of Transport staff members were ‘‘disadvantaged after they raised concerns and if they were, make recommendations for an appropriate remedy’’.

Prime Minister Bill English said it was important Hughes was ‘‘seen to take action’’ but also investigate to ‘‘ensure people who were doing their best to protect the public interest were treated fairly’’.

Sandi Beatie QSO will carry out the investigation supported by the State Services Commission’s Chief Legal Officer and other SSC staff as required. Beatie will report to the State Services Commissioner. The investigation will look into: - Whether or not any current or former employee of the Ministry of Transport (including contractors or secondees) who raised concern about the behaviour of Joanne Harrison was disadvantaged in their employment as a result of raising those concerns;

- If so, the circumstances of any disadvantage that occurred;

- What, if anything, should now occur by way of remedy;

- Any recommendation on the implementation and management of protected disclosures or complaint mechanisms within the public service.