SFO shake-up to ditch 5 senior posts

Ex-Act MP Donna Awatere Huata

The Serious Fraud Office is set to lose five senior staff under a restructuring of the white-collar crime agency to be announced next month.

More than 70 years of fraud investigation experience is expected to go soon after the SFO announces whether charges will be laid against finance companies such as Bridgecorp and Blue Chip.

The new SFO director, Adam Feeley, set a deadline of March 31 for a decision on the finance company prosecutions. The details of the restructuring are due to be announced soon after.

The Herald understands six key roles will be disestablished in the draft review including:

* Assistant director, currently held by Gib Beattie.
* Senior supervising investigators, currently held by David Osborn, Rhys Metcalfe and Ian Varley.
* Complaints officer (also Mr Varley).
* Chief prosecutor, held by Anita Killeen.

All have been involved in recent high-profile cases such as the $18 million ASB fraudster Stephen Versalko, the $17 million Otago DHB fraudster Michael Swann, ex-Act MP Donna Awatere Huata and the $20 million fraudster Warren Pickett.

While all five can apply for new roles in the SFO, colleagues say it is unlikely they will stay.

The senior staff members were either unable to be contacted or declined to comment.

But the likes of Mr Beattie - who recently celebrated 20 years at the SFO - represent a wealth of experience, say several Queen's Counsel who work closely with the fraud office.

"If that experience was to be lost, it would be very hard to replace those people who have had ... a unique experience fighting white-collar crime in New Zealand," said one QC.

Mr Feeley, appointed director in November, confirmed that a review began in January in response to the Government's decision to retain the SFO.

"That decision has required the office to reposition itself as the leading specialist law-enforcement agency in New Zealand dealing with complex financial crime."

Mr Feeley said it was inappropriate to comment on details of the review, as no decisions had been made. But he said it was not a cost-cutting exercise.

"The outcome of the review is intended to not only strengthen its performance, but also ensure that it is structured in a manner that ensures it has access to skills [internally and externally] to further its role in fighting financial crime."

He said the need for the review had been endorsed by other law-enforcement agencies, regulators and the insolvency sector, as well as major legal and accounting firms.

It is understood law firm Meredith Connell, which holds the Crown warrant for prosecutions, and accountancy firm PricewaterhouseCoopers will be closely involved with future SFO investigations.

In January, Mr Feeley told the Herald he had set a deadline of March 31 to decide if charges will be laid after investigations into finance company activities.

While he was loath to criticise his predecessor, Mr Feeley said: "I think the SFO could have moved faster."

He described the length of the finance company investigations as a historic legacy he did not wish to repeat.

The SFO faced abolition between September 2007 and October 2008 until the election of the National-led Government.

The previous Labour Government had wanted to merge the SFO with the new police Organised and Financial Crime Agency, which National opposed at the time.

Judith Collins, the minister responsible for the SFO, said last month that she expected the agency to work closely with receivers, the business community and others who had an "interest in a corruption-free New Zealand".

"It will also be crucial that the SFO works more effectively with other regulators to ensure a speedier, united response to cases of suspected fraud."

70 YEARS OF EXPERIENCE ON THE LINE

Gib Beattie - former merchant banker and forensic accountant with 20 years' SFO experience.
David Osborn - senior forensic accountant with 19 years' SFO experience.
Rhys Metcalfe - former senior police detective with 15 years' SFO experience.
Ian Varley - former senior police detective with 10 years' SFO experience.
Anita Killeen - chief prosecutor with seven years' SFO experience.