KEY POINTS:
The director of the Serious Fraud Office, Grant Liddell, announced yesterday that he had decided that the SFO will inquire into the issue of donations made to the New Zealand First Party, in particular the allegations that funds donated to the NZ First Party by the Sir Robert
Jones and Vela family interests did not reach their intended destination.
Mr Liddell said that he was satisfied that the threshold had been met for commencing an investigation using statutory powers under the SFO Act.
"I have sufficient information that gives me reason to suspect that an investigation may reveal serious and complex fraud."
"I want to emphasise that it is entirely possible that there are innocent and honest explanations. The use of the statutory power to require documents to be provided will enable the SFO to ascertain how funds were applied," Mr Liddell said.
"I have decided on the information currently available that I do not have a basis for using statutory powers to inquire into allegations that Mr Glenn's donation was misapplied or that there was an attempt corruptly to influence the Primary Production Select Committee that inquired into allegations of corruption in the Ministry of Fisheries in relation to scampi quota in 2003. It is possible that the investigation I have authorised might be broadened at some later time and these other matters inquired into as a result of whatever information comes to light in the course of the investigation about to commence," Mr Liddell said.
"At present there is not enough material to give me a 'reason to suspect', in terms of the statutory threshold, on these two matters. In the case of the Glenn donation, it is clear from both Mr Peters' and Mr Glenn's accounts that the money was donated for Mr Peters' legal expenses. In the case of the allegations concerning the scampi select committee, the allegations are serious, but serious of allegation alone is not enough. There needs to be information availabel to support the requisite suspicion, and there is not, at this point."
"Ordinarily, complaints of fraud involving sums of less than $500,000 are dealt with by the Police. In such cases though, where I consider that the matter is sufficiently serious, the SFO can act, and I am satisfied that this case is serious. On information currently to hand, there are serious questions whether donations intended for one purpose may have been put to a different purpose. The allegations concern important matters relating to the funding of a political party, which go to the heart of the democratic process, and involve a minister in the Government. They also relate to the actions of laywers, who as officers of the court have fundamental obligations to uphold the law."
"I want to make clear that matters that the Privileges Committee is considering and any possible issues of failing to report donations as required by the Electoral Act are not part of the SFO investigation."
"This investigation will be accorded priority. It is not possible to say how long it will take. Should the scope of the inquiry be substantially broadened, I will make a public statement. I will make a further public statement at the conclusion of the inquiry."
