SFO's replacement weak says NZ First

Ron Mark. Photo / Mark Mitchell

New Zealand First has cast doubt on plans to blunt the powers of investigators to probe serious fraud.

The Government yesterday unveiled proposals for a new branch of the police to investigate top-level crime, the Organised and Financial Crime Agency.

The agency will absorb the soon-to-be-closed Serious Fraud Office but will not inherit all the SFO's sweeping powers to compel answers from those it investigates.

Labour will be expecting the help of support party New Zealand First to pass legislation merging the SFO into the police.

New Zealand First law and order spokesman Ron Mark yesterday said his party would be likely to support sending the bill setting up the agency to a select committee for further discussion, but questioned the wisdom of watering down the SFO's powers.

"We have a piece of legislation that empowers the investigation of high-level, complex white-collar crime that requires the skills of forensic accountants to uncover, but they will have less power to do so than they had before.

"Is that a good thing? Hard to understand how it could be."

The SFO's 33 staff will remain in Auckland, and the Government intends the merger with the police to be complete by July 1. The SFO will become one of a number of task forces operating under the agency's banner: its staff will become police employees but will not be sworn officers.

Investigators will still be able to obtain a production order, forcing the handing-over of data or documents, and examination orders, which compel people to attend a police interview.

However, they will need to apply to a judge to obtain either order.

In addition, they will lose the SFO's power to override a person's right to remain silent - changes Police Minister Annette King said had been made because SFO powers breached the Bill of Rights.

Ms King said judicial oversight of the agency would be similar to that police operated under now, when they needed a judge to endorse an interception warrant or search warrant.

"Examination orders are only provided at this stage to financial crime. Within the new agency, the examination orders will be available to organised crime as well as to financial crime, so the safeguard that is put in there is judicial oversight, and it is on the say of the Commissioner of Police. So you have some direct accountability as to who is using those powers."

National's law and order spokesman, Simon Power, called the plan a mishmash of Government-speak that would do nothing to crack down on gangs and corporate fraudsters.