Auditor-General to stand down

Auditor-General Martin Matthews will stand down while his suitability to continue in the role is reviewed, the Speaker has announced.

The decision was made after a meeting of MPs from all parties on Wednesday afternoon.

Senior public servant Sir Maarten Wevers will carry out the review, and is expected to make a decision within two weeks.

Speaker David Carter said Mr Matthews rang him and offered to stand down last night.

The move comes after Opposition MPs questioned Mr Matthews' handling of a fraud case in his former role as Secretary of Transport.

Mr Matthews led the transport ministry while former senior manager Joanne Harrison stole $750,000 through fake invoices to companies which did not produce any work.

Harrison was jailed for three years and four months in February this year.