Radio NZ fight goes to SFO

Lynne Snowdon. File photo / Mark Mitchell

A former Radio New Zealand news boss who has been fighting her sacking for more than six years has placed a new dossier in front of the Serious Fraud Office, alleging money went missing from the state broadcaster between 1999 and 2003.

But the toll on Lynne Snowdon has been severe.

She was due to appear in court in Wellington tomorrow for the next stage in what has become a costly and protracted employment dispute, but her husband and lawyer John Hickling has sought an adjournment because Snowdon's health is too bad. She could not stand up to the rigour of courtroom questioning.

Snowdon was sacked in 2005 by then-RNZ chief executive Sharon Crosbie amid allegations of financial mismanagement. She has been fighting to get her job back ever since.

"It has been extremely expensive and has taken a terrible toll. It's unrelenting and you can't get on with your life," Hickling said.

However, Snowdon has escalated the fight by commissioning an Auckland accountant to prepare a report, which has gone to the SFO.

The SFO confirmed it had received the report from BDO Information Systems Ltd, alleging that $795,000 is missing and untraceable from the state-owned broadcaster's official financial records between 1999 and 2003.

Wayne Kedzlie, associate director of the accountancy firm, claims the money is part of about $12 million historically misappropriated or allegedly used for improper purposes.

A spokesperson for the SFO said it was deciding whether to initiate an inquiry.

The 310-page report claims:

* $7 million was improperly spent by RNZ funding programmes and staff for purposes other than what was stated in its funding contract with New Zealand On Air.

* $2.5 million was spent on legal fees by RNZ defending Snowdon's case.

* $1.3 million was spent between 1999 and 2003 on unnecessary discretionary expenditure.

But central to the report is a claim that three annual lump sums of $265,000 are missing from RNZ's financial records between 2000 and 2003.

"No one would suspect possible theft within such an iconic institution and they have not, until now," Kedzlie said.

A spokesman for Broadcasting Minister Jonathan Coleman said it was inappropriate for the minister to comment yet.

RNZ chief financial officer Ken Law said the fraud allegations had been consistently found to be untrue. He would not comment about the report to the SFO.