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NZ Post Welcomes AG's Report On Transend

For immediate release 16 December 2002

New Zealand Post Welcomes Auditor General’s Report On Transend

New Zealand Post Chairman Rt Hon Jim Bolger welcomed the findings of the Office of Controller & Auditor-General’s (OAG) report into Transend Worldwide Limited.

Mr Bolger said New Zealand Post accepted the report’s findings that a small number of staff within Transend incurred expenditure that was ‘excessive and wasteful’.

“Clearly, this was not an appropriate standard of behaviour by which a state-owned business such as Transend should have been conducting itself.

Mr Bolger said the root causes of the problems had been addressed. Transend had been substantially restructured since March 2002, with staff numbers reducing from 38 to 22 and senior management being mainly replaced.

“Transend’s travel and accommodation policies have been changed to bring them into line with those of New Zealand Post, which specify the use of ‘modest business class’ hotels and allow business class air travel only where flights of more than 5 hours duration are taken during a 24 hour period.

“Importantly, the OAG report finds that the current governance arrangements for Transend are appropriate and that the new travel, accommodation and business policies have been implemented satisfactorily.

“The OAG has made several recommendations to ensure that the travel policy is permanently cemented in place in Transend and that guidelines are clarified on what is acceptable hotel, meal and entertainment expenditure. These are being actioned by New Zealand Post.

Mr Bolger said Transend continued to win work internationally by exporting New Zealand Post-developed expertise and equipment. The subsidiary is targeting revenues of NZ$15-20 million in 2002/03.

“As an example in the past month New Zealand Post has signed a $1.5million contact to provide over 650 Postal Delivery Sorting Systems to Hongkong Post.”


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