SFO throws out Affco union complaint

Union members protest outside the Horotiu Affco freezing works on State Highway 1. Photo / Richard Robinson

The Serious Fraud Office has thrown out a complaint from Affco against the union representing its locked-out workers.

Meat processing company Affco lodged an SFO complaint on April 5 after alleging there were irregularities in the accounts of the New Zealand Meat Workers Union.

Its chief executive Hamish Simson said the union, which is representing about 1400 workers locked out by Affco, had not declared all the income gained from fees paid by its 23,000 members.

SFO chief executive, Adam Feeley this afternoon said an immediate evaluation of the information provided to investigators failed to find any evidence of fraud.

"We encourage any member of the public to contact us where they have any reasonable grounds to believe that a serious financial crime may be taking place. However, it is equally important that the resources of law enforcement agencies are not unnecessarily drawn into matters where other, more appropriate, courses of action are available."

An SFO spokeswoman had earlier said the complaint would go through a 20-day evaluation period.

Meat workers union national secretary Dave Eastlake said the SFO complaint was a "publicity stunt complaint that has already be found to be without substance to detract attention from their brutal lock out of Affco workers and families".

The New Zealand Institute of Chartered Accountants had already investigated a similar complaint and advised no action would be taken, Eastlake said.

He said the complaint was an attempt from Affco's owners Talley's to gain extra leverage in an ongoing industrial dispute.

"It is disingenuous for Talley's Affco to try and suggest there is money missing from the union's national account when they know we audit our four branches separately from our national account, which is a common legal practice," he said.

"We are concerned, but not surprised, that Talley's Affco chose to start their latest smear campaign the day before we go to mediation."

Eastlake said the union's accounts were audited and available to members.

"It's a load of rubbish.

"You can't hide things when you've got 20,000 members that can see what you're doing. You don't last long even if you have an extra cup of coffee."