Minister: KiwiSaver scandal with police
The widening KiwiSaver scandal yesterday saw the Commerce Minister put the ball into the police’s court following official advice that concluded laws banning controversial weapons applied to providers of the public savings scheme.
Official advice received this morning by Minister Paul Goldsmith from Ministry of Business, Innovation and Employment officials considered three pieces of legislation banning cluster bombs, nuclear weapons and landmines.
“We believe that three acts apply to potential investments in weapons manufacturers,” the advice concluded.
A Herald investigation into the sector found more than 1.8 million New Zealanders had invested in funds which had invested at least $ 43 million in companies producing such weapons.
The advice — weighing up The Cluster Munitions Prohibition Act, The Nuclear Free Zone, Disarmament and Arms Control Act and The AntiPersonnel Mines Prohibition Act — concluded: “The police are responsible for investigations in respect of these laws”.
A police representative yesterday afternoon said they were aware of the i ssue and had begun asking questions.
“Police are making inquiries with other agencies,” the representative said.
Goldsmith said he and his officials had formally referred the matter to police, but it was not his place to request they pick up the issue.
“It’s not appropriate as a Minister for me to suggest what the police should be doing. It’s up to them, like any enforcement agency, to weigh up all the factors.”
He agreed the ball was now in the police’s court.
Goldsmith sought the advice following a Herald investigation into KiwiSaver holdings, and an independent series of stories from Radio NZ, that showed KiwiSaver investors had invested millions into companies producing weapons banned by New Zealand and international law.
The “Dirty Secrets of KiwiSaver” analysis found $ 4.3m of client funds had been invested into landmine producers, $ 2.3m into cluster- bomb makers and $ 36.9m into nuclear weapon- producers.
In response, a number of KiwiSaver providers found to have invested in cluster bomb producers — including Westpac and Aon — announced internal reviews. Grosvenor and AMP went further and announced they would take immediate steps to divest their holdings.
Commerce Minister Paul Goldsmith