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‘Astonishment’ at lobbyists advising Transparency International on ethics and rules of their own industry

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Transparency International has set up a secret group of lobbyists to provide advice on improving ethics in the lobbying industry – sparking claims it is being captured by the forces it seeks to contain.

Questions are also being raised about whether the open government and anti-corruption watchdog is compromised by its sources of funding and support.

Transparency International New Zealand (TINZ) receives funding from several government sources, including the clandestine state intelligence agencies the Security Intelligence Service (SIS) and the Government Communications Security Bureau (GCSB).

TINZ, a registered charity, also receives business support from a number of big consultancy firms including KPMG, Deloitte and PWC.

Transparency International plays a key role in shaping perceptions of New Zealand’s international reputation, as its corruption index consistently ranks New Zealand as one of the least corrupt countries.

Business consultant Ernie Newman, who himself worked as a lobbyist in the grocery and telecommunications sectors, said he severed ties with TINZ over its lobbying strategy.

Newman first approached TINZ in May after Labour MP Kris Faafoi joined a lobbying firm within weeks of leaving Cabinet, underscoring his concern at the revolving door between the Beehive and the lobbying industry.

Unlike most of the developed world, lobbying is unregulated in New Zealand.

There are no obligations on lobbying firms to register or to disclose their clients and no stand down periods for government officials becoming lobbyists or lobbyists taking government jobs.

TINZ offered Newman a role as a ‘member with delegated authority’ – which allows experts to share their knowledge and represent TINZ at forums.

But he was then told that would mean joining a group of lobbyists who would be providing expert advice to TINZ – lobbyists that TINZ refuses to name.

“My initial reaction is astonishment that TINZ would rely on a team of 4-5 lobbyists to lead its response on such a crucial issue,” Newman wrote in an email to TINZ on 30 May.

“Consulting them is fine but putting them in charge is altogether different – a bit like the police recruiting gang members to determine new rules on pursuit of fleeing drivers.”

He declined to join the group and told TINZ that, “as an organisation you have been caught in a culture of complacency and captured by the very system you are charged with overseeing.”

In an interview with RNZ, Newman said TINZ was not doing its job.

“I think they have been sucked into the very system – captured by the very system – they are there to protect the public from and I think they are doing New Zealand a great disservice by continuing to tell everyone that we are a relatively uncorrupt country. I don’t believe we are anymore.”

He said it was vital TINZ was strong and independent because lobbying and consultancy firms had taken over much of the work that career public servants used to do.

“We have actually handed over, to a large extent, the soul of the New Zealand government machine to the private sector without putting any apparent constraints around them, how they share information and how conflicted they may become.”

A ‘conversation’ with lobbyists

TINZ CEO Julie Haggie said the charity was simply talking to lobbyists about how a code of conduct for the industry might work.

“Why wouldn’t you have a conversation with lobbyists about what they think would work for them? They’re the ones who know the lobbying sector best.”

She would not say who the lobbyists were.

“I’m not going to tell you. It’s not that I don’t want to say it but I’m not going to put people up to be shut down by other people.”

Haggie also rejected the idea that TINZ was compromised by its funding.

She said government agencies funding TINZ had an interest in combating corruption.

“GCSB and NZSIS have a strong interest in fighting corruption – that is one of their primary issues, the things that they do.”

TINZ received $30,000 a year from the SIS and GCSB (reduced to $15,000 from SIS this year), $25,000 from police and $20,000 from Inland Revenue.

It receives $250,000 from a three-year contract with the Ministry of Justice to promote transparency and good governance and to fight corruption.

The Ministry for Business, Innovation and Employment, the Department of Internal Affairs, the Ministry of Foreign Affairs and Trade and the Public Service Commission also contribute to that fund.

Haggie said business support was largely in the form of corporates allowing TINZ to use meeting rooms, providing food and drinks and pro bono legal advice.

“Those companies, as well as working in the lobbying space, like Deloitte and KPMG, are also working in the anti-corruption space,” she said.

“KPMG runs a report on fraud analysis and they have a lot of expertise in the area. A lot of them are working in compliance around anti-money laundering and a lot of them do company law and so they have a good deal of knowledge.”

Haggie said TINZ had a small paid team and relied on a volunteer board and members with delegated authority.

TINZ had no physical office space, limited assets and held virtual board meetings.

“We maximise the funding and resources we get to have the best impact.”

Source: RNZ

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Police say person who fired gun at officers still at large

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Police say a person who fired a gun at officers in Napier is still at large.

Eastern District Commander Superintendent Joel Lamb said Police tried to stop a vehicle in the Pirimai Area at about 10pm on Tuesday.

He said someone in the back seat pointed what was presumed to be a firearm at officers pursuing the vehicle.

“Staff have then heard two distinct gunshots as the firearm was discharged.

“Fortunately, neither of our officers were injured, and the patrol vehicle did not sustain any damage.”

He said hours later, the vehicle was seen travelling north on the Waikato Expressway towards Auckland.

Police seized the vehicle at an address in Manurewa, but they had not found the alleged offender.

Lamb said people who lived at the Manurewa address were engaging with Police.

He said Eastern District and Counties Manukau Police were making enquiries.

“Presenting a firearm at a Police officer is a serious escalation that puts our staff and the wider community at risk. This behaviour is entirely unacceptable.

“We are taking this incident extremely seriously and will be pursuing all lines of enquiry to locate the offender and hold them accountable.”

Police asked anyone who witnessed the incident to contact Police on 105 or online using the reference number 261111/3764.

Information could also be provided anonymously via Crime Stoppers on 0800 555 111.

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New Zealand sides named for RLWC finals

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The players tasked with ending Australia’s Rugby League World Cup dominance have been named.

The Kiwis and Kiwi Ferns have announced their squads for this Sunday’s World Cup finals in Brisbane.

Both sides are chasing their first titles since 2008, and both are looking to end their opponents run of three crowns in a row.

“Our Kiwi Ferns have been so dominant in years gone by, and we want to bring dominance back to this jersey, so I think it will be a case of who wants it more,” said co-captain Georgia Hale of the impending clash.

The Kiwis get a major boost for the final as they welcome back Ronaldo Mulitalo after he served a one-match ban for a high tackle against Fiji Bati.

Mulitalo replaces Charnze Nicoll-Klokstad, who moves to the six-man bench, which again includes utility Te Maire Martin, middle forwards Naufahu Whyte, Erin Clark and Xavier Willison plus fullback Keano Kini.

Loose forward Joseph Tapine will make his 30th Test appearance in a familiar pack again, including second-rowers Isaiah Papali’i and Briton Nikora, and props James Fisher-Harris and Moses Leota.

Winger Jamayne Isaako is on the cusp of claiming the New Zealand record for most Test points.

His five goals against Tonga lifted his career points tally to 225 – level with Shaun Johnson – while centre Casey McLean goes into the final with 16 tries in just eight Tests.

Fisher-Harris will again captain the team.

Fullback Ponga said the goal of the group was clear.

“We have high expectations around what we want to achieve, and obviously winning a world Cup is one of them.”

Meanwhile, Ricky Henry has selected a settled side to take on the Jillaroos, led by their lethal centre combination of Stacey Waaka and Mele Hufanga.

Veteran Apii Nicholls takes the number one jersey, Leianne Tufuga and Mackenzie Wiki on the wings.

Henry has stuck with his halves pairing of Chantay Kiria-Ratu and Raecene McGregor with Alexis Tauaneai, Georgia Hale and Otesa Pule up front.

Rounding out the starting pack is Shaniece Monschau, Kaiyah Atai, and Angelina Teakaraanga-Katoa.

“We have been building well throughout the tournament; we understand the Jillaroos side, and will give it our all to make New Zealand proud this weekend,” said Henry.

RLWC Finals:

Kiwi Ferns vs Jillaroos- 6.10pm

Kiwis vs Kangaroos – 9.35pm

Sunday November 15

Suncorp Stadium, Brisbane

Live blog updates on RNZ

Kiwi Ferns:

1. Apii Nicholls 2. Leianne Tufuga 3. Mele Hufanga 4. Stacey Waaka 5. Mackenzie Wiki 6. Chantay Kiria-Ratu 7. Raecene McGregor 8. Alexis Tauaneai 9. Georgia Hale 10. Otesa Pule 11. Shaniece Monschau 12. Kaiyah Atai 13. Angelina Teakaraanga-Katoa.

Interchange: 14. Ashleigh Quinlan 15. Annessa Biddle 16. Shannon Mato 17. Ivana Lauitiiti.

Reserves: 18. Brooke Anderson 19. Zahara Temara 20. Brianna Clark 21. Abigail Roache 22. Tenika Willison.

Kiwis:

1. Kalyn Ponga, 2. Jamayne Isaako, 3. Dane Gagai, 4. Casey McLean, 5. Ronaldo Mulitalo, 6. Kodi Nikorima, 7. Jahrome Hughes, 8. James Fisher-Harris (c), 9. Jeremy Marshall-King, 10. Moses Leota, 11. Isaiah Papali’i, 12. Briton Nikora, 13. Joseph Tapine (v/c).

Interchange: 14. Te Maire Martin, 15. Naufahu Whyte, 16. Erin Clark, 17. Xavier Willison.

Reserves: 18. Keano Kini, 19. Phoenix Crossland, 20. Charnze Nicoll-Klokstad, 21. Scott Sorensen, 22. Leo Thompson.

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Opportunities to mitigate multi-million-dollar RNZ budget blowout likely missed – experts

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Multiple opportunities to identify and mitigate a multi-million-dollar budget blowout at RNZ appear have been missed, according to the former executive director at Audit New Zealand.

The public broadcaster on Monday revealed a near $12 million shock financial loss after a litany of financial blunders, which will now lead to sweeping job cuts.

The $11.8m loss is more than 25 times the $470,000 RNZ had expected to lose over the year to June.

CEO Paul Thompson took responsibility for the result, and said internal reports gave an inaccurate picture of the finances, meaning the scale of the loss only became clear in October.

RNZ’s former chief financial officer Hilary Parker resigned unexpectedly in early October.

The board said it would commission an independent review into what went wrong.

Independent contractor Stephen Walker, who left the Audit Office earlier this year, said the size of the loss was surprising, as was the length of time it took to identify it – months after the financial year ended.

Stephen Walker.
Independent contractor Stephen Walker is a former executive director at Audit New Zealand.

Supplied / OAG

“Probably more of a concern is that they had seemingly been unaware that they were running up a significant deficit until they were in the preparation stage of their annual report in October.”

Walker said public entities typically produced monthly financial reports.

An interim audit also took place before the end of the financial year, he said, but if the organisation hadn’t identified significant losses at that stage, the auditor could also be in the dark.

“It seems that there’s a real weakness in forecasting and budgeting that’s occurred here and that the monthly accounts, when they’re produced, either haven’t identified these significant variances against budget or the magnitude of them really hasn’t come to light until right towards the end of the financial year,” Walker said.

“And really at that point, there’s no opportunity for the chief executive, the leadership team to take, and the board to take, any corrective action because the year has effectively been completed.”

Walker said the “significant miss” was difficult to account for given it was more than 10 percent of RNZ’s total funding.

He said based on RNZ’s annual report, financial complexity didn’t appear to be a factor.

“This $11.8m loss isn’t made up of one particular item … it seems to have been contributed to by a number of separate expense lines running over budget. So I don’t think it’s necessarily to do with complexity.”

Among the errors, RNZ wrongly counted $2m from land sales as income in its budget. Staff costs also came in $3.2m over budget, including $1.4m in redundancy payments.

Professor at Auckland University’s business school Norman Wong said based on media reports the issues identified were “significant and troubling”.

Norman Wong.
Norman Wong.

Supplied / University of Auckland

“But recognising the sale of land as income in their budget is a basic error that one would have expected to have been caught and corrected well before it got to this point.”

With funding reductions at RNZ over the past two years, Walker expected greater scrutiny of financial results.

“Virtually every public entity has had their annual budget reduced. And so you would expect … the leadership team on a monthly basis and board – I’m not sure how frequently the board will consider the information – but you would expect them to be interrogating the results on a regular basis throughout the year,” he said.

Walker said initiating an independent review was the correct course of action and that he’d want to understand what information the leadership team and the board were regularly receiving.

He said he’d “love to say” surprising financial results were rare, but conceded they occured on a semi-frequent basis during his time leading the Audit Office.

“The benefit of independent scrutiny by the Audit Office – and the auditors providing that support to the Auditor General – [is] that the reporting is fairly presented at the end of the year, whether it’s good, bad or ugly.”

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