Act leader blew whistle on McClay's charity fraud

Roger McClay will not serve prison time, but will lose ex-MP travel perks worth $30,000 a year. Photo / Richard Robinson

Rodney Hide has emerged as the whistleblower in the $25,000 Roger McClay scandal.

It is understood the Act Party leader spoke to the Parliamentary Service in December 2008 after having a conversation with Simon Johnston, then chief executive of Keep New Zealand Beautiful.

Mr Johnston had been asked to investigate McClay's expense claims by charity board members and went to Mr Hide for advice about the travel perks for ex-MPs.

A few days later, the Parliamentary Service rang Mr Johnston for details of McClay's invoices. A police inquiry began in February 2009 and fraud charges against McClay were laid in March this year.

Over nearly three years, the five-term National Party MP charged World Vision and Keep New Zealand Beautiful $11,800 for driving expenses when he had flown courtesy of the taxpayer.

He then "double-dipped" by claiming $12,887.10 from the Parliamentary Service with the 90 per cent travel discount he receives as an ex-MP.

The former Commissioner for Children has pleaded guilty to three charges of fraud and will be sentenced to community work next week.

Mr Hide did not return phone messages yesterday.

Last year, he apologised and repaid $21,952 to the Parliamentary Service for claiming the travel perk for his partner on ministerial trips.

Claiming the travel rebate did not break Parliament's rules, but it was not a good look for an MP who made his name as a "perkbuster".

Mr Johnston, who has since left Keep New Zealand Beautiful, would not comment on whether he had spoken to Mr Hide.

"Justice has been done," he said, referring to the guilty plea and the fact McClay would lose his ex-MP travel perks worth up to $30,000 every year.

Judge Jan Doogue indicated he would be sentenced to community work for his fraud fraud against two charities and the taxpayer.

"You were a respected member of society in whom people trusted," said Judge Doogue. "You knew that these charities were in strained financial positions, yet you knowingly acted in this way."

An early guilty plea, full reparation of the $24,687.10 and his previous good character helped McClay escape a custodial sentence.

He is no longer involved with World Vision or Keep New Zealand Beautiful. Since the rort was made public by the New Zealand Herald in December, he has also left roles at Heart Children New Zealand, Variety and Spinal Trust New Zealand.

He is a trustee at For the Sake of Our Children Trust, where spokeswoman Rachel Taumoepeau said McClay had excused himself from trust business while the case was ongoing. She said his role would be discussed at the next board meeting but the trust supported McClay and his family.

During his 15 years in Parliament, until 1996, McClay was Minister of Youth Affairs and Associate Minister of Education and Social Welfare.

He was then appointed Commissioner for Children, and in 2005 was made a companion of the Queen's Service Order.