Funding may not be spent, police say

WELLINGTON: Police have admitted they may not be able to make use of money granted through the Criminal Proceeds Fund within the timeframe promised.

Several police projects have been funded through the contestable fund, which comes from money and assets seized from criminals by police.

The Covert Operations Group was one police initiative to have secured funding but, in a sixmonthly update to Justice Minister Kris Faafoi sent in March, it said there was a chance the funding would not be fully used.

Police have funded six projects during the most recent cycle, including $1.4 million to the Covert Operations Group.

That money was supposed to help target largescale money launderers and people involved in significant drug dealing.

Police said the funding had helped net some significant assets, but there had been issues.

‘‘The environment is interchangeable, which may lead to funding not being fully utilised within the expected timeframes,’’ the report said.

‘‘Operational planning is ongoing, with any opportunities being identified and capitalised on through targeted activity.’’

Police were asked what they meant by an ‘‘interchangeable environment’’, and why the funding might not be used.

‘‘Covert operations frequently operate in a dynamic changing environment necessitating rephasing of timeframes and duration to termination,’’ Assistant Commissioner Sue Schwalger responded.

Asked for further clarity, a spokesman explained that police did not know how long any operation would last, and so it was not possible to know when money would be spent for a certain operation.

Police would not say how much of the $1.4 million funding has been spent so far, but Ms Schwalger said she believed it would all be spent by the end of June next year.

‘‘Funding allocated in 201920 and 202021 has been utilised in a number of operationally sensitive operations,’’ she said.

‘‘The remainder of the funding will be used during the 202122 year as planned.’’

Ms Schwalger said there was no concern with conflict of interest over police using Proceeds of Crime Funds to run their Covert Operations wing.

‘‘On the contrary — directing Proceeds of Crime funding to preventing and deterring harm in communities by curbing the activities of those who directly cause that harm is an effective way to prevent further harm.

‘‘Seizing the assets of organised criminals and other high end, high harm offenders through action under the Criminal Proceeds (Recovery) Act 2009 reduces their capacity to undertake their criminal activities and strips them of the material rewards they obtain from their criminal lifestyle.

‘‘Putting some of that funding into activities that target them directly is an entirely appropriate use of those funds.’’

She said there was no conflict of interest for police to manage in using the money from the fund.

‘‘Police do not make the decisions about which projects receive funding.

‘‘Those decisions are made by the Prime Minister, the Minister of Justice and the Minister of Finance on the recommendations of an interagency panel chaired by the Ministry of Justice.’’ —

❛ Covert operations frequently operate in a dynamic changing environment necessitating rephasing of timeframes and duration to termination