Tēnā koe Andrew

Thank you for you request of 8 July 2024.

Your request has been passed on to the team best placed to consider the matters rasied. Our Office will be in touch in due course.

Ngā mihi

Shauna
Enquiry mailbox
04 917 1500| [email address]
Office of the Auditor-General Te Mana Arotake
Improving trust, promoting value
Level 2, 100 Molesworth Street, Thorndon, Wellington 6011 | PO Box 3928 Wellington 6140
oag.parliament.nz | Follow us on Twitter, Facebook, Linkedin, and Instagram

-----Original Message-----
From: Andrew Green <[FOI #27533 email]>
Sent: Monday, July 8, 2024 1:47 AM
To: enquiry <[email address]>
Subject: Official Information request - Concerns Regarding Ministerial Procurement and Auditor-General's Investigative Authority

[You don't often get email from [FOI #27533 email]. Learn why this is important at https://aka.ms/LearnAboutSenderIdentific... ]

CAUTION External email: Unless you are certain the email is from a trusted source, DO NOT click links or open attachments.

Dear Office of the Controller and Auditor-General,

I am writing to express my concerns and request information under the Official Information Act regarding the Office of the Auditor-General's investigative authority concerning the procurement process for ministers appointing report writers. Specifically, I am deeply concerned about Minister Bishop's appointment of former National Party leader Bill English to write a partisan report on KO using public funds without undergoing any procurement checks. This undermines public trust and confidence in public finance.

Furthermore, I am concerned about how the rate of pay for Bill English was determined and whether this process was transparent. Additionally, I am concerned about the text messages that directly inquire with Minister Bishop about his expectations for the review, along with the funding source for his and his daughter's company's review. Does the Office have powers to investigate such matters?

Moreover, I would appreciate clarification on whether the Office has the independent authority to thoroughly investigate purely political appointments and the public allocation of funding for such a purpose. I also seek assurance on whether the Auditor-General operates independently or faces influence or constraints imposed by the executive branch of government.

Your prompt attention to these concerns and inquiries is greatly appreciated.

Yours faithfully,

Andrew Green

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_______________________________________________________________
The information contained in this email message is intended only
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If you are not the intended recipient you must not use,
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hide quoted sections

Tçnâ koe Andrew

 

Thank you for your email.

 

Please note, our Office is not subject to the Official Information Act
(OIA) 1982, as explained on our [1]website.

 

We are aware of the matter you have raised, and we note:

o The review of Kâinga Ora was commissioned by the Minister of Finance
and the Minister of Housing to be carried out under section 132 of the
Crown Entities Act 2004.
o This was formally agreed to by the Cabinet 100-day Plan Committee, who
also gave approval for what the review might cover, the budget (to
come from Ministry of Housing and Urban Development funding), the
process for formally selecting and appointing the reviewers, and the
type of reviewers expected.
o We have not seen evidence that ImpactLab was involved.
o Ministers/Ministerial appointments are not subject to Government
Procurement Rules.
o There is no specific guidance within the Crown Entities Act 2004,
Inquiries Act 2013, or from the Department of the Prime Minister and
Cabinet (DPMC) regarding any procurement process that should be
followed.
o Ministers have broad discretion to make decisions. They can seek
advice of their own initiative and rely on their own knowledge when
making decisions.

 

The Controller and Auditor-General is [2]an Officer of Parliament. This
means he is independent of the Government and can't be directed by
whichever political party is holding power. Under the Public Audit Act
2001, the Office of the Auditor-General can inquire into uses of public
money, but not into policy decisions. We can only look at whether the use
of public resources is in a manner consistent with those policy decisions.
As we have seen no evidence to indicate that this was not the case here,
our office does not propose to do further work regarding this matter at
this time.

 

Thank you for writing to us about your concerns.

 

Ngâ mihi,

 

Jessica Short (she/her)
Inquiries Specialist – Legal, Policy and Inquiries
+64 21 222 8407 | [3][email address]
Office of the Auditor-General Te Mana Arotake
Improving trust, promoting value
Level 2, 100 Molesworth Street, Thorndon, Wellington 6011 | PO Box 3928
[4]oag.parliament.nz | Follow us on [5]Twitter, [6]Facebook, [7]LinkedIn,
and [8]Instagram

 

 

-----Original Message-----

From: Andrew Green <[9][FOI #27533 email]>

Sent: Monday, July 8, 2024 1:47 AM

To: enquiry <[10][email address]>

Subject: Official Information request - Concerns Regarding Ministerial
Procurement and Auditor-General's Investigative Authority

 

[You don't often get email from
[11][FOI #27533 email]. Learn why this is
important at [12]https://aka.ms/LearnAboutSenderIdentific... ]

 

CAUTION External email: Unless you are certain the email is from a trusted
source, DO NOT click links or open attachments.

 

Dear Office of the Controller and Auditor-General,

 

I am writing to express my concerns and request information under the
Official Information Act regarding the Office of the Auditor-General's
investigative authority concerning the procurement process for ministers
appointing report writers. Specifically, I am deeply concerned about
Minister Bishop's appointment of former National Party leader Bill English
to write a partisan report on KO using public funds without undergoing any
procurement checks. This undermines public trust and confidence in public
finance.

 

Furthermore, I am concerned about how the rate of pay for Bill English was
determined and whether this process was transparent. Additionally, I am
concerned about the text messages that directly inquire with Minister
Bishop about his expectations for the review, along with the funding
source for his and his daughter's company's review. Does the Office have
powers to investigate such matters?

 

Moreover, I would appreciate clarification on whether the Office has the
independent authority to thoroughly investigate purely political
appointments and the public allocation of funding for such a purpose. I
also seek assurance on whether the Auditor-General operates independently
or faces influence or constraints imposed by the executive branch of
government.

 

Your prompt attention to these concerns and inquiries is greatly
appreciated.

 

Yours faithfully,

 

Andrew Green

 

-------------------------------------------------------------------

 

This is an Official Information request made via the FYI website.

 

Please use this email address for all replies to this request:

[13][FOI #27533 email]

 

Is [14][Office of the Controller and Auditor-General request email] the wrong address for Official Information
requests to Office of the Controller and Auditor-General? If so, please
contact us using this form:

[15]https://aus01.safelinks.protection.outlo...

 

Disclaimer: This message and any reply that you make will be published on
the internet. Our privacy and copyright policies:

[16]https://aus01.safelinks.protection.outlo...

 

If you find this service useful as an Official Information officer, please
ask your web manager to link to us from your organisation's OIA or LGOIMA
page.

 

 

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If you are not the intended recipient you must not use, disclose, copy or
distribute this message or the information on it.

 

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Kia ora Andrew

You raise a number of issues in your email touching on the legislative and policy settings under which such appointments are made, and your view that these settings are not adequate. We appreciate your deeply held concerns about the current settings. Unfortunately, as we indicated in our earlier correspondence, our Office's mandate primarily relates to how public entities are spending public money and does not extend to advising on the optimal legislative settings or legal remedies.

Ngā mihi

Jessica Short
Inquiries Specialist - Legal, Policy and Inquiries
Phone: +64 21 222 8407 | mailto:[email address]

Office of the Auditor-General Te Mana Arotake | Audit New Zealand Mana Arotake Aotearoa
Improving the public’s trust in, and the performance of, the public sector
100 Molesworth St, Thorndon, Wellington 6011 | PO Box 3928, Wellington 6140
http://www.oag.govt.nz/ | http://www.auditnz.govt.nz/ | Follow us on https://twitter.com/auditor_general | https://www.facebook.com/AuditorGeneralNZ/ | https://www.linkedin.com/company/office-... | and https://www.instagram.com/auditorgeneral...

-----Original Message-----
From: Andrew Green <[FOI #27533 email]>
Sent: Monday, July 22, 2024 12:20 AM
To: Jessica Short <[email address]>
Subject: RE: Official Information request - Concerns Regarding Ministerial Procurement and Auditor-General's Investigative Authority

CAUTION External email: Unless you are certain the email is from a trusted source, DO NOT click links or open attachments.

Dear Jessica Short,

Thank you for your prompt response to my inquiry regarding the appointment of Mr. Bill English for the report on Kāinga Ora, and the use of public funds in this matter.

I appreciate the information provided regarding the statutory framework under which such appointments are made, including the Cabinet's approval process and the discretionary powers of ministers. However, I remain deeply concerned about the implications of such appointments on transparency and public trust.

Specifically, my concerns revolve around:

Lack of Procurement Safeguards
It appears that ministerial appointments for reports using public funds are not subject to Government Procurement Rules. This raises the risk of partisan appointments without transparent processes, potentially favoring political allies over merit-based consulting firms.

In the case of Mr. Bill English, his involvement raises serious concerns due to apparent conflicts of interest linked to his business ventures. The Kāinga Ora Report recommends a departure from universalism towards a social impact approach, a stance that aligns with Mr. English's business interests, particularly through ImpactLab.The report also includes expectations of formal reporting of outcomes by a third party and promotes a social investment approach. It has come to light that ImpactLab charges substantial fees to charities for assessments related to such recommendations. For instance, charities are reportedly required to pay ImpactLab $25,000 to receive recommendations on their social outcomes, influencing government funding decisions.

This scenario casts doubt on the independence and fairness of the report's conclusions. It raises questions about whether public funds are being used to advance agendas that benefit politically connected individuals or entities. The absence of competitive bidding from truly independent consulting firms, such as reputable consulting firms, further underscores the risk of biased outcomes in government reports. This situation suggests that public funds may not be allocated based on merit.

These issues highlight a troubling loophole where public funds could potentially be utilised to support private interests rather than serving the public good. Ensuring transparency and preventing such conflicts of interest in procurement processes is crucial to upholding public trust and accountability.

Independence and Oversight
While I acknowledge the independence of the Office of the Auditor-General, the ability to inquire into the use of public money under the Public Audit Act 2001, and the Officer of Parliament status, the current framework appears to provide insufficient safeguards against misuse of public funds for politically motivated purposes.

Given these concerns, I would appreciate further clarification on the following points:

Prevention of Favoritism
What mechanisms, if any, are in place or could be implemented to ensure that future procurement processes for report writing appointments are conducted in a manner that upholds transparency and prevents favoritism based on political affiliation?

Legal and Legislative Remedies
Would addressing these issues require judicial review, or would legislative changes be necessary to strengthen procurement guidelines and ensure that public funds are allocated solely based on merit rather than political connections?

I look forward to your insights and suggestions on how these issues could be addressed to enhance accountability and public confidence in the use of public resources.

Thank you for your attention to this matter.

Yours sincerely,

Andrew Green

-----Original Message-----

Tçnâ koe Andrew

Thank you for your email.

Please note, our Office is not subject to the Official Information Act
(OIA) 1982, as explained on our [1]website.

We are aware of the matter you have raised, and we note:

o The review of Kâinga Ora was commissioned by the Minister of Finance and the Minister of Housing to be carried out under section 132 of the Crown Entities Act 2004.
o This was formally agreed to by the Cabinet 100-day Plan Committee, who also gave approval for what the review might cover, the budget (to come from Ministry of Housing and Urban Development funding), the process for formally selecting and appointing the reviewers, and the type of reviewers expected.
o We have not seen evidence that ImpactLab was involved.
o Ministers/Ministerial appointments are not subject to Government Procurement Rules.
o There is no specific guidance within the Crown Entities Act 2004, Inquiries Act 2013, or from the Department of the Prime Minister and Cabinet (DPMC) regarding any procurement process that should be followed.
o Ministers have broad discretion to make decisions. They can seek advice of their own initiative and rely on their own knowledge when making decisions.

The Controller and Auditor-General is [2]an Officer of Parliament. This means he is independent of the Government and can't be directed by whichever political party is holding power. Under the Public Audit Act 2001, the Office of the Auditor-General can inquire into uses of public money, but not into policy decisions. We can only look at whether the use of public resources is in a manner consistent with those policy decisions.
As we have seen no evidence to indicate that this was not the case here, our office does not propose to do further work regarding this matter at this time.

Thank you for writing to us about your concerns.

Ngâ mihi,

Jessica Short (she/her)
Inquiries Specialist – Legal, Policy and Inquiries
+64 21 222 8407 | [3][email address]
Office of the Auditor-General Te Mana Arotake Improving trust, promoting value Level 2, 100 Molesworth Street, Thorndon, Wellington 6011 | PO Box 3928 [4]oag.parliament.nz | Follow us on [5]Twitter, [6]Facebook, [7]LinkedIn, and [8]Instagram

-------------------------------------------------------------------
Please use this email address for all replies to this request:
[FOI #27533 email]

Disclaimer: This message and any reply that you make will be published on the internet. Our privacy and copyright policies:
https://fyi.org.nz/help/officers

If you find this service useful as an Official Information officer, please ask your web manager to link to us from your organisation's OIA or LGOIMA page.

-------------------------------------------------------------------
_______________________________________________________________
The information contained in this email message is intended only
for the addressee and is not necessarily the official view or
communication of the Office of the Auditor-General.
If you are not the intended recipient you must not use,
disclose, copy or distribute this message or the information on it.

hide quoted sections