From left Police Commissioner Richard Chambers, Serious Fraud Office chief executive Karen Chang and Police Minister Mark Mitchell at the launch of a new Anti-Corruption Taskforce pilot programme in Auckland. Photo: RNZ / Lucy Xia
A newly launched Anti-Corruption Taskforce pilot programme, led by the Serious Fraud Office (SFO), will be running for the next six months to assess risks across the public sector - including AI-enabled fraud, foreign interference and insider threats.
The SFO will be supported by the Police and the Public Service Commission to build a "system-wide" picture of the corruption and fraud risks in the public sector.
Between July and September, the taskforce will request six agencies to complete self-assessments and supply data: Inland Revenue, Accident Compensation Corporation, the Department of Corrections, the Ministry of Social Development, Land Information New Zealand and Sport New Zealand.
The agencies will also report on the volume of corruption and fraud detected and prevented.
By the end of the year, the taskforce will prepare advice to ministers and release a public report about the trends, gaps and recommended actions.
SFO chief executive Karen Chang said tackling public sector fraud was about safeguarding taxpayers' funds and protecting New Zealanders' trust in government.
"By bringing frontline agencies and enforcement partners together, this will help build a clearer intelligence picture that can be used to lift system resilience and ensure we stay ahead of emerging threats such as insider threats, foreign interference and AI-enabled fraud."
Chang said that the SFO estimates that hundreds of millions, or possibly billions of dollars of public funds was lost to fraud and corruption every year in New Zealand, but there was currently a lack of reliable data on the precise scale of the problem.
The pilot would generate a baseline that informed more targeted prevention, better detection and stronger enforcement, she said.
She said many of the corruption cases involve risks to health and safety - and referred the examples such as building inspectors being bribed to waive through consents, and health officials bribed for contracts to supply medical equipment to hospitals.
The agencies sampled were already proactive members of the existing Counter Fraud Centre community, and their willingness to share data showed a strong commitment to integrity, she said.
The six agencies represented different risk profiles - from large agencies that distributed funds to the public, to ones involved in law enforcement, she said.
When asked whether the pilot may look into local government risk profiles in the future, Chang said while she did not want to pre-suppose where the pilot may lead, it was likely to be considered.
There were currently over central government 40 agencies and about 20 local government agencies that were members of the Counter Fraud Centre, Chang said.
"We're very acutely aware of the particular nuances and contexts of local governments."
"To the extent that we look at next steps, and it's appropriate for it [the pilot] to be scalable, local government [will] almost definitely be a relevant feature," she said.
Police Commissioner Richard Chambers said working with agencies across government would allow the taskforce to identify risks early and use the collective enforcement to keep the system strong.
Police Minister Mark Mitchell said the public sector accounted for a third of the economy, and the pilot was a "critical step" in protecting and enhancing New Zealand's reputation as an attractive place to invest.
"Every dollar of public funding counts, and preventing the unlawful taking of taxpayer money is something we take very seriously," he said.
Public Service Minister Judith Collins said the taskforce would help increase transparency and encourage ethical conduct across the public sector.
"Fighting corruption is not just about prosecution - it's about leadership, accountability and promoting a culture of integrity."
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
