Fax from lawyers scuttles scampi allegation

5.00pm - By IAN LLEWELLYN

The last substantial claim of corruption laid against Fisheries Ministry officials and their handling of the scampi industry melted away at a parliamentary inquiry today.

Parliament's primary production select committee is investigating whether the Auckland-based Simunovich fishing company illegally stitched up access to the $100 million scampi industry by colluding with fisheries officials.

During a recent hearing the ministry's national operations manager Steve Stuart said he met Barine Developments chief executive Neil Penwarden where serious accusations were made.

Among the allegations by Mr Penwarden, "he specifically mentioned that Vaughan Wilkinson (Simunovich director) had paid off Bruce Shallard (senior ministry official) to get his scampi permit," Mr Stuart said.

"At the time I was concerned and taken aback by his allegations, particularly those against MFish officials. On the face of it they sounded compelling. However, when Mr Penwarden was pushed for the evidential basis of his allegations, I found that he was operating on hearsay and assumptions and had no direct evidence of either historic or current offending," he said.

Today Mr Shallard told MPs that Mr Penwarden's claims were without foundation.

"I categorically reject any suggestion that I got paid off by Mr Wilkinson or any other person for the issue of any scampi permits or any other fishing permits," Mr Shallard said.

"I have never at any time as a public servant sought or received payments of the sort alleged... I regard this as an allegation that seriously damages my reputation in a totally unwarranted way."

As Mr Shallard gave his evidence the committee received a fax from Mr Penwarden's lawyers claiming he had never made any such allegation.

"He vigorously denies making any such allegation to Mr Stuart or anyone," the letter said.

Mr Penwarden's lawyer said in the letter that he was "very concerned" that Mr Shallard was responding to an allegation "without Mr Penwarden having been questioned as to whether Mr Stuart's statement to the committee was true".

After the inquiry Mr Stuart told NZPA that he could not offer any comment on the latest twist in the scampi inquiry or what Mr Penwarden had said or not said to him.

The inquiry has already heard allegations that:

* Simunovich repeatedly created false fishing returns. Similar claims have been made against other companies including Barine Developments; and

* Fisheries officials favoured Simunovich over other companies in issuing fishing permits.

One former fisheries inspector, Barry Nalder, claimed he lost his job as he was about to expose illegal fishing at Simunovich and others felt their inquiries were ended prematurely.

The inquiry was sparked by a TVNZ documentary founded on allegations gathered by Barine Developments and Mr Nalder.

On the opening day of the inquiry Barine Development's lawyers told MPs there was no evidence of corruption, but the allocation of rights to scampi was unfair.

Simunovich managing director Peter Simunovich has told MPs the company played "hard but fair" to gain a large chunk of the fishery.

The ministry has said there were some inconsistencies in how permits were offered by different regions, but there was no favouritism in allocation or monitoring.

There have been many court cases over the allocation of fishing permits that have found unfairness in the way permits were issued.

- NZPA