Did a Cabinet Minister Tell a Saudi to Sue New Zealand Taxpayers?

The Taxpayers’ Union is calling on the Prime Minister to take seriously the allegation that someone in his Government suggested to Hmood Al-Ali Al-Khalaf that he sue the New Zealand Government in relation to the ban of live sheep exports. The threat of legal action was later used by Murray McCully to convince Cabinet to award a $4 million payment, and fly 900 pregnant ewes to a taxpayer-funded "Agri-hub" in the middle of a Saudi desert. In total this cost taxpayers $11.5 million. Taxpayers’ Union Executive Director, Jordan Williams, says:

“John Key should find out whether this allegation is correct, find out who it was, and sack them.”

“The legal threat the Government relied upon to justify the payment to Mr Al-Khalaf, is looking more and more like a jackup than a real liability. Political arse covering is no excuse for a Minister to suggest to anyone that they should sue taxpayers."

Responding to Mr Key’s comments in Parliament yesterday that Mr McCully ‘has provided the full story’, Mr Williams says:

“The Taxpayers’ Union, and others, have received legal advice that any claim against the New Zealand Government by Mr Al-Khalaf is highly unlikely. We’ve asked officials numerous times what the legal risk was, or what treaty or contract the Government may have breached. Far from providing the full story, Mr McCully’s officials are not answering anything.”

"This whole deal, and the lack of answers to the most basic questions, stinks to the high heavens."

Last month the Taxpayers’ Union wrote to the Auditor-General asking her to investigate. A copy of the letter is available here.

ENDS

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