Allegation of fraud by a staff member referred to Police by Housing NZ

Housing New Zealand will be referring to the Police its investigation into allegations an Auckland staff member was offering state houses for money, chief executive Dr Lesley McTurk said today.

“Housing New Zealand has conducted a thorough investigation into the allegations over the past month, and based on what we have found, I believe a criminal investigation needs to be considered and I have referred the matter to the Police, “ Dr McTurk said.

“Because the allegations may result in a criminal case, I cannot comment in detail about the findings of Housing New Zealand’s investigation. However, I can say we have uncovered 31 cases, relating to one staff member, where people have been housed in state homes in circumstances we are concerned about. There are a smaller number of cases we are concerned about, relating to the same staff member, where people have applied for state housing but have not yet been housed.

“In these cases, Housing New Zealand’s systems and processes have not been followed, and there is the likelihood that people obtained tenancies in state homes when they should not have done, or with a greater priority than their circumstances warranted. In doing so, they displaced someone else in greater need.

“This is totally unacceptable to me. Our customers are people in vulnerable circumstances, and they have a right to expect a fair and level playing field. Housing New Zealand is determined to ensure its staff, systems and processes have integrity,’ Dr McTurk said.

“The staff member at the centre of this investigation no longer works for Housing New Zealand.

“The Corporation will be further investigating those cases where we believe tenants have acted dishonestly in obtaining a state home, and taking appropriate action, potentially tenancy termination.

“I am also releasing today an independent review of Housing New Zealand’s priority assessment and housing allocation systems, which I commissioned to identify what we could improve to prevent this situation arising again,” Dr McTurk said.

“The review by KPMG has found that the current housing allocation process is effective and there are high levels of staff adherence to it. The public can have confidence in the process.

However, the review has recommended a range of enhancements to drive greater consistency, and prevent the abuse of process at the heart of this investigation.

“Housing New Zealand will be adopting these recommendations,” Dr McTurk said.

“I remain confident that the matter in Auckland is an isolated incident, and that Housing New Zealand staff are honest and deeply committed to helping those most in need.”

A full copy of the KPMG report is available at www.hnzc.co.nz

© Scoop Media