NZ Post paying private eyes to investigate staff, as more than a dozen found pilfering packages or mail

Private investigators in the pay of NZ Post have found more than a dozen rotten apples among its staff, the Herald can reveal.

Details obtained via the Official Information Act show that since October 2018, NZ Post has had a contract with Paragon NZ, a security consultancy offering private investigations, surveillance services and vetting.

The security firm investigates “internal and external” theft affecting the postal service, NZ Post said.

In the past four years, 14 NZ Post employees have been subject to disciplinary action for mail theft.

NZ Post would not release the value of the contract, citing commercial sensitivity.

Paragon managing director Ron McQuilter said he couldn’t comment for similar reasons.

But NZ Post did supply details of the results of their investigations.

Since 2019, private investigators contracted by NZ Post have investigated 22 of its employees.

Of those, 15 staff have had the allegations against them substantiated.

Private investigator Ron McQuilter said he could not comment on his company's activities for NZ Post because the contract is live. Photo / John Borren

Eleven employees were fired without notice and two resigned before the outcome of the process could be delivered.

One was slapped with a final written warning and one was still waiting to learn their fate.

An NZ Post senior external communications adviser said the private investigators did not conduct surveillance on employees.

“The external security consultants we use have never conducted surveillance on any NZ Post employee,” she said in a statement.

“The definition of surveillance would constitute mobile vehicle surveillance, utilising one or more operators.”

However, Paragon staff often reviewed CCTV footage after alleged offending has occurred, the statement said.

NZ Post stood by the use of private investigators from Paragon NZ.

“Using such security consultants ensures that a thorough and independent investigation to collect the facts of the matter is undertaken,” its statement said.

“This process also enables NZ Post to better understand and address any system or systemic concerns which may have enabled the behaviour.

“It also provides capacity and additional resources for standard investigations, leaving the NZ Post team to supervise these and work on more strategic matters.”

After investigations, Paragon NZ security consultants present their findings to the head of security and compliance for NZ Post, its regional security advisers and relevant branch and depot managers.

NZ Post's East Tamaki distribution centre. Photo / Michael Craig

“If theft is determined as substantiated, they also present their findings to the NZ Police.

“For transparency purposes, any of the above parties could and do hold Paragon NZ accountable for an appropriate level of investigation.”

McQuilter, Paragon’s co-owner and managing director, was a police officer in Glasgow before he came to New Zealand in 1983 and established a successful and high-profile career as a private investigator.

Paragon general manager Wayne Kiely, who also has a shareholding in the company and is billed as its lead investigator, is a former NZ police detective.

He previously worked as a security manager at New Zealand Post.

Paragon’s website said most of its corporate work involves the investigation of dishonesty offending for its clients.

“We work within the law and, spanning 36 years, can boast of never having lost a case or failed to solve offending for our clients,” its website said.

“That said, a private investigator has an entirely different agenda from the police and yes … often we do need to be feral to catch these crooks, something we are not scared to admit.”

Another post on its website shows Paragon uses the same sort of investigative techniques employed by police detectives.

“Our client is our first priority and recovering losses is often high on our list of objectives.

“We obtain factual information, physical, documentary and digital evidence as well as obtaining direct evidential statements from witnesses, suspects and offenders.”

George Block is an Auckland-based reporter with a focus on police, the courts, prisons and defence. He joined the Herald in 2022 and has previously worked at Stuff in Auckland and the Otago Daily Times in Dunedin.