31 Oct 2024

Auditor-General to inquire into possible conflicts of interest by ministers over fast-track projects

3:39 pm on 31 October 2024
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Auditor-General John Ryan is to inquire into the management of conflicts of interest in relation to fast-track projects. Photo: Controller and Auditor General

The Auditor-General is launching an inquiry into how ministers handled conflicts of interest when it came to fast-tracked projects.

Earlier this month, the coalition published a list of the 149 projects being considered through the Fast-track Approvals bill.

It also highlighted the projects in which relevant ministers declared a potential conflict: eight for Regional Development Minister Shane Jones and one for Infrastructure Minister Chris Bishop.

In a statement issued on Thursday afternoon, Auditor-General John Ryan said he would investigate whether "appropriate systems and processes" were in place to ensure ministers promptly identified all conflicts and took sufficient steps to manage them.

He said that was vital for maintaining public trust and confidence, as well as New Zealand's global reputations for transparency, accountability, and integrity.

"This is especially so when decisions are being made at the highest level of government (that is, by Ministers), or in relation to significant decisions about how public resources are used.

"For these reasons, and the significant public interest in the Fast-track process, we have decided to carry out an inquiry."

Ryan said the inquiry would delve into how well the existing checks and balances were understood and implemented, and would look for potential areas for improvement.

"The focus of the inquiry is to gain a better understanding of, and provide assurance about, the overall systems and processes in place.

"We will not examine or comment on policy decisions underpinning the Fast-track process, or the merits of individual projects or the decisions to include an individual project in the Fast-track Approvals Bill."

Ryan said he would publish a report once the inquiry was complete. A timeframe was not provided.

The Auditor-General's office had earlier indicated in its annual plan an intent to look into how ministerial conflicts of interest were managed.

Speaking earlier in October, Prime Minister Christopher Luxon told RNZ he was confident all conflicts had been managed appropriately.

"We assiduously worked with the Cabinet office to make sure from the beginning of those conversations that we had good protocols in place," Luxon said.

"Where there were conflicts, ministers were asked not to participate in the conversations or to leave the rooms."

Critics of the fast-track process have accused the coalition of running roughshod over democracy.

An early version of the scheme gave final sign-off for projects to the three relevant ministers - Bishop, Jones, and Simeon Brown - but the current iteration grants that power to an independent expert panel.

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