SFO chief executive Karen Chang said the new taskforce would build intelligence to combat “insider threats, foreign interference and AI‑enabled fraud“.
The taskforce unveiling comes after experts warned the Government about compromised police officers, immigration officials, and private sector employees in ports and airports.
Cabinet minister Casey Costello established an expert group in February to advise how government agencies could work better to combat organised crime.
The group’s first report said New Zealand was “losing the fight” against organised crime and it urged the Government to take bold steps.
The second report, released in May, focused on stopping money flows to organised crime groups here and overseas.
The panel called for the banning of cryptocurrency ATMs and cash wages in “high-risk” industries.
The Government announced last week that cryptocurrency ATMs would be banned.
The SFO said today that it would work with six agencies on the taskforce.
They are Inland Revenue, ACC, Corrections, the Ministry of Social Development, Land Information New Zealand and Sport New Zealand.
The SFO would assess the “fraud and corruption control maturity” of those agencies.
The agencies will report on corruption and fraud volumes detected and prevented.
In the 2021 Corruption Perceptions Index, New Zealand ranked first-equal with Denmark and Finland.
By this year, it had slipped to fourth place, behind Denmark, Finland and Singapore.
The SFO said it would lead the new taskforce and use specialist counter-fraud and enforcement expertise.
“Many of the organisations in this pilot are already proactive members of our Counter-Fraud Centre community,” Chang said.
That centre was established to support agencies in building counter-fraud capabilities.
Chang said the taskforce would foster more targeted prevention, better detection and stronger enforcement.
The pilot will run for six months.
In the first phase, from July to September, the taskforce will work with the six agencies to gather data and test “assessment and reporting” processes.
In the second phase, from October to December, it will review the data and prepare a public report and advice to ministers on next steps.
“The taskforce’s work will build a clearer intelligence picture of the threats that face our public sector,” Mitchell said.
“This is about taking proactive action to ensure our prevention and response system remains resilient and fit for purpose.
“Every dollar of public funding counts, and preventing the unlawful taking of taxpayer money is something we take very seriously.”
Police Commissioner Richard Chambers said the taskforce should help law enforcement to identify risks early.
Public Service Minister Judith Collins said the Government intended to maintain New Zealand’s reputation as one of the world’s least corrupt countries.
“By increasing transparency, identifying risks and encouraging ethical conduct across the public sector, this taskforce will help maintain trust in our institutions.”
Public Service Commissioner Sir Brian Roche said the taskforce should bolster New Zealand’s ability to detect and prevent fraud and corruption in the public sector.
John Weekes is a business journalist mostly covering aviation and courts. He has previously covered consumer affairs, crime, politics and courts.
- Additional reporting by Jared Savage.
