The fallout from convicted fraudster Joanne Harrison's case has continued, with another Government agency launching an investigation.

The Corrections Department confirmed today that Harrison was employed in a recruitment role for four months in 2008.

That was before she stole more than $700,000 from the Ministry of Transport, where she was employed in a senior management role. She is now serving three years and four months in jail.

Corrections looked into the issue after a tip-off from the State Services Commission last week, which said Harrison had mentioned the department in an email.


"A full internal audit of Joanne Harrison's work during her time with Corrections was immediately undertaken and is continuing," a Corrections spokeswoman said.

"Once the audit is completed, the department will act on any recommendations or findings."

Corrections is the third agency to carry out a review into Harrison's work since she was convicted in February.

The Ministry of Transport opened an investigation earlier this month following allegations from ministry staff that they were forced out of their jobs after raising concerns about Harrison's behaviour.

That investigation has now been taken over by the State Services Commission after staff complained about the ministry's handling of the issue.

The Department of Conservation also employed Harrison to carry out an inquiry into harassment allegations in 2015.

Corrections is reviewing her inquiry, though it says she was not the lead decision-maker and that the findings are unlikely to be compromised.

Auditor-General Martin Matthews, who was previously Secretary of Transport, stood down last week so his handling of the fraud case could be investigated.