Former state servant faces fraud charges

The Transport Accident Investigation Commission has advised that a former employee made an initial appearance in the Wellington District Court yesterday (21 July 2011) on fraud-related charges.

The defendant was remanded on bail to reappear on 10 August 2011.

Commission chief executive Lois Hutchinson said in a written statement today that "the alleged offending by a former accounts administrator took place over a 4-year period until early this year and involved about $284,000 of Commission funds".

"It appears that intricate methods have been used to take money and to avoid internal checks and external audit. These checks included the Commission's own fraud prevention and detection programme which had uncovered suspect transactions that led to the laying of a complaint with Police in April. The Commission had since worked with forensic accountants, its bank, and the Police to assemble evidence ahead of yesterday's arrest and court appearance," Ms Hutchinson said.

"Any further details of what is alleged to have happened should properly be aired first in Court.

"Our external auditor's report for the financial year to 30 June 2010 described our financial management information and control systems as 'very good'. Nevertheless, we have sought expert advice and made changes," Ms Hutchinson said.

The Transport Accident Investigation Commission investigates 30-40 selected aviation, marine and rail incidents and accidents each year with the potential to provide safety related learning and improvements and to help New Zealand meet international obligations. It is a standing Commission of Inquiry and an independent Crown entity based in Wellington with an annual budget of $3.9m and about 20 staff.

ENDS

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