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Kroll Report: Bombshell for NZ Post and Government

Leaked Kroll Report: Bombshell for NZ Post and Government

Sunday 10 Feb 2002 Rodney Hide Press Releases -- Governance & Constitution

ACT Finance Spokesman Rodney Hide today delivered a bombshell to NZ Post by making public the South African Government's draft, confidential Kroll Report.

The Kroll Report claims NZ Post misled the South African Government to win the contract, that NZ Post International Consultancy wing Transend's handling of the project was "disjointed," "uncoordinated," in "disarray," based on "unrealistic budgets" and that Transend failed to deliver on agreed financial targets.

"The Kroll Report itself is bad enough," Mr Hide said.

"What makes it scandalous is NZ Post's attempts to cover up the failure. Chairman Ross Armstrong says he can't recall ever seeing the report. Board member Ken Douglas says he has never seen it. Yet NZ Post says the Board was given the Kroll Report back in August last year. What's going on? This is not the sort of report that you read and easily forget.

"The Finance and Expenditure Committee asked for a copy of the Report. NZ Post replied that they didn't have it. They clearly did. My leaked copy includes a 12-page response from NZ Post.

"No private company could get away with this. Yet NZ Post has so far escaped both commercial and parliamentary accountability. No one has been held to account. No heads have rolled.

"The Kroll Report raises major questions about NZ Post's performance in South Africa and their behaviour back here at home in failing to inform their Board, their Ministers and Parliament of what actually went on.

"NZ Post clearly has a great deal of explaining to do. One of the things they will need to explain is why New Zealanders should trust them to run a bank given their performance in South Africa." Mr Hide said.

Rodney Hide MP

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