More CERA staff members under investigation for conflict of interest allegations

The Prime Minister’s top official, Andrew Kibblewhite, has revealed to a select committee three more CERA staff are under investigation for alleged conflicts of interest.

This follows an investigation by the State Services Commission that found two former Canterbury Earthquake Recovery Authority (CERA) staff members had obvious conflicts of interest between their roles and private business interests.

Mr Kibblewhite, chief executive of the Department of Prime Minister and Cabinet, fronted up to MPs this morning and, before answering questions, took the time to defend CERA.

He said the report, conducted by former solicitor-general Mike Heron, QC, showed CERA’s human resources practices were “orthodox” and it was the “individuals [who] needed to take responsibility for their actions, rather than blaming the institutions they were meant to be serving.

“I would prefer to reflect on all the staff other than those [named] and the vast contribution they made,” he said.

Labour’s spokeswoman for Canterbury issues, Megan Woods, asked what processes had been established to root out other potential conflicts of interest that have been referred to in the report in either CERA or Crown company Otakaro.

Mr Kibblewhite said he is looking into a “small number of names” that are being investigated for alleged conflicts of interest.

After being pressed, he revealed there were three names in addition to the ones revealed in Mr Heron’s investigation.

“There are some additional names that those people have said, ‘well, there’s other activity going on’ so we’re looking at that at the department.”

He said it would take weeks, rather than months, for a decision about whether more serious scrutiny was required.

He says none of the people under investigation work for Otakaro.

Asked by Dr Woods if the investigations are related to the use of public information for private profit, Mr Kibblewhite would not answer the question.

“All we have had is a suggestion over three names where others have said conflicts of interest have been alleged and we’re looking at those.

“We’re early in the process and I would not want to go into any detail at this point.”

After the committee meeting, Mr Kibblewhite would not elaborate when questioned on the issue.

“There have been some suggestions that have been put up by the individuals who have proven to have acted inappropriately,” he told media before leaving abruptly.