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Home / New Zealand

Criminals pay $30 million for community programmes through confiscated assets

Jeremy Wilkinson
By Jeremy Wilkinson
Open Justice multimedia journalist, Palmerston North·NZ Herald·
5 May, 2022 10:30 PM5 mins to read

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The Live for More surf therapy programme received more than $1 million in funding. Photo / Supplied

The Live for More surf therapy programme received more than $1 million in funding. Photo / Supplied

New Zealand's criminals have funded almost $30 million in community programmes in the past year.

They even bought New Zealand Customs Service a new drug-detection machine.

However, none of this was out of goodwill or philanthropy but rather money confiscated from their drug dealing, money laundering and theft.

The latest funding round of the Proceeds of Crime Fund was released last week, revealing $22m in funding for a range of programmes targeting mental health, homelessness, health and education.

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It's the largest release of money the fund has ever handed-out and it comes after significant backlash last year when it was revealed almost $3m had been approved to fund a meth rehabilitation programme run by the Mongrel Mob.

However, in its latest round the Ministry of Justice, which administers the fund, has opted for less controversial programmes to receive a grant.

One of those is Live for More, a Tauranga-based organisation that uses surfing as a drawcard to make a connection with young people who have turned to drugs, gangs and crime.

Alongside surf therapy, they provide intensive clinical counselling, practical life navigation skills, mentoring and cultural sessions.

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"Our guys are notorious for not completing programmes, so surfing is that massive drawcard. It starts them the right way for the day," operations manager Dave de Graaf said.

"Surfing helps with that connection. Catch a wave together and immediately you're best mates, and then when they come to the therapy session they trust you more and they're receptive."

Live for More has been granted $1.1m from the fund, which de Graaf says will be used to expand programmes into more long-term courses for their graduates.

"For a lot of our guys, changing your life in nine weeks is unreasonable."

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The organisation has outcomes they want to see from youths in the programme including staying out of prison and the justice system, being in employment or training, staying drug-free, getting out of gangs as well as having a focus on mental wellbeing.

De Graaf said he hoped the programme could expand into other regions as well as run courses for girls.

The Proceeds of Crime Fund was established in 2009 under the Criminal Proceeds Recovery Act and allows police to seize cash and assets that have been obtained directly or indirectly from the proceeds of crime.

Twenty different government organisations can apply to the fund and their proposals are assessed by a panel before the money is released.

The money must go to alcohol and other drug treatment services, fighting criminal groups dealing meth and other drugs, addressing mental health and helping communities that have been affected by crime in their areas.

In each funding round, one-third of the funds available are prioritised for initiatives to fight organised criminal groups dealing in methamphetamine and other drugs.

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An Official Information Act request released to Open Justice shows the fund has received more than $256m in the past five years, with $115m having been handed out.

Other programmes that received funding in the latest round were an overhaul and upgrade of the Youthline system, the ex-Wellington Men's Nigh Shelter and an upgrade to Whangārei's CCTV network.

In last year's round where $7m was released by the fund, New Zealand Customs received $300,000 for a machine that will rapidly test suspicious substances at Auckland Airport.

The Ministry of Health also received almost $5m for a programme called "Pou oranga whaiora", however it was unable to answer questions about what the programme was and what the money would be used for.

Police seize assets from criminals and prosecute them through the courts to have those funds deposited into the Proceeds of Crime funding pool.

Most recently police confiscated $80,000 in cash and cars from Hawke's Bay Mongrel Mob member Tux Miller.

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This was a relatively small amount, with more than $6.6m worth of property and cash seized from Mongrel Mob in the region during the past two years.

Assistant Commissioner of Police Chris de Wattignar said the fund was a way of redressing the harm that had been caused by crime in the community.

"We'll target organised criminal groups and gangs especially who are often at the forefront of causing harm.

"The aim is to make a difficult place for criminals to do business."

Any non-government organisation wanting a slice of the fund must have a sponsor from a government agency willing to support a programme they're proposing.

"We're working with NGOs and community groups right around the country. A lot of those folk are wanting to do more and often exist on the smell of an oily rag," de Wattignar said.

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