Inquiry finds NZDF accepted $418k in gifts, calls for careful policy

The NZDF has accepted gifts and hospitality worth more than $418,000 since 2016. Photo / New Zealand Defence Force

By RNZ

The New Zealand Defence Force needs to be careful when accepting gifts or hospitality from commercial suppliers, says the Auditor-General, after an inquiry found it accepted more than 2500 gifts in recent years.

The inquiry found that between 2016 and 2025 the New Zealand Defence Force (NZDF) accepted gifts and hospitality valued at more than $418,000, including food and drinks at functions, gift vouchers and smart watches, as well as tickets to concerts by international artists, the World of Wearable Arts and sporting events.

In a media release, Auditor-General John Ryan said spending public money through contracts with suppliers must be, and be seen to be, made for the right reasons without inappropriate influence.

The Office of the Auditor-General (OAG) became aware of the NZDF accepting gifts and hospitality from a commercial supplier in 2024 and staff carried out inquiry work to understand NZDF’s policies.

The NZDF introduced a new policy in 2023 that resulted in a reduction in the number of gifts and hospitality being accepted and clearer expectations are also being set by senior leadership.

Ryan said although there had been positive change, the NZDF continued to accept gifts and hospitality.

“NZDF needs to carefully consider the inherent risks associated with continuing to accept offers of gifts or hospitality from its suppliers. The practices we have seen in this case risk the public and Parliament losing confidence in the decisions made to contract with those suppliers,” Ryan said.

The inquiry found 78% of gifts and hospitality were recorded as accepted to build “business relationships” and most of them (84%) were in the period before November 2023, when the NZDF introduced its new policy.

In a statement, the New Zealand Defence Force said it welcomed the inquiry and accepted it must maintain high standards to safeguard trust.

“The Defence Force will continue to ensure standards are maintained and improvements are made where required. No evidence was found of inappropriate influence of NZDF officials or decisions in relation to commercial contracts.”

Many of the concerns raised were historical and addressed by improvements made proactively by the NZDF and since the inquiry, more work had been done to improve “organisational awareness”, the statement said.

“The NZDF accepts it needs to continue work to ensure expectations are maintained.

“The NZDF’s policy on accepting gifts and hospitality reflects that the organisation must maintain constructive working relationships with commercial suppliers in the defence industry, particularly in the context of future procurement and the need to rapidly advance defence capabilities.”

The statement said the NZDF reports to the Foreign Affairs Defence and Trade select committee every year with a list of gifts and hospitality, which was available online.

OAG inquiries manager David Lemmon told RNZ his office had seen some improvement in recent years, but the NZDF still had to keep steady.

“We also note that the defence force needs to carefully consider these risks as it continues to do its business, and if it’s going to accept or consider accepting any of these gifts, it needs to carefully consider the risk with doing that.”

– RNZ