9 April 2006

Housing Minister comments on allegations

Housing Minister Chris Carter is calling in the chairman of the Board of Housing New Zealand Corporation (HNZC) for a full explanation of the allegations raised in the Herald on Sunday about the Corporation’s accounting practices.

“HNZC’s Board is responsible for overseeing the financial accountability of the Corporation, and I will be seeking from the Board a full report on these allegations and how the Board is handling them. I will also be seeking an assurance from the Board that the government can have confidence in financial reports from the Corporation,” Mr Carter said.

“I do not regard the letter sent by the Corporation to its former contractor prohibiting him from discussing his concerns with Ministers or MPs as remotely appropriate.

“I note the allegations made in the Herald on Sunday are only allegations at this stage. But they clearly need to be fully investigated, and I am not ruling out further action over and above those the Board has already initiated to ensure public confidence is retained in the Corporation. I will await further information before making that decision.”

The Minister and the Board chairman will meet on Monday.

ENDS

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