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Carter reassured by Housing Corporation inquiry

Hon Chris Carter
Minister of Housing

9 June 2006 Media Statement

Carter reassured by Housing Corporation inquiry


Housing Minister Chris Carter said today he was reassured by the Office of the Auditor-General's inquiry into allegations made about Housing New Zealand's financial accounting practices.

“While the Office of the Auditor-General has identified some areas of procedural improvement for the Corporation, the substantive allegations of accounting manipulation have not been upheld despite thorough and independent investigation,” Mr Carter said.

"In the words of the Office of the Auditor-General: the 'inquiry did not give rise to any significant concerns about the Corporation's financial accounting practices'.

“The report has found that the non-disclosure clause used by the Corporation in a confidentiality agreement with a former contractor making the allegations was unwise and inappropriate. I agree with this finding and the Office of the Auditor General has provided valuable guidance to all government entities about what is permissable in confidentiality agreements in future,” Mr Carter said.

“Today, I have asked the chairman of Housing New Zealand’s Board to report back to me within a fortnight with a detailed plan of how the Corporation will address the procedural improvements the Office of the Auditor-General has proposed, and how they intend to respond to the lessons learned from the inquiry."

Mr Carter said he would like to offer his thanks to the Office of the Auditor General for a swift and in depth investigation.

ENDS

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