While we patted ourselves on the back for years for being top of the 182 countries ranked, we now stand at fourth, the same as in 2024.
We are at least well ahead of the United States which stands at 29th.
However, as the pilot report of New Zealand’s Anti-Corruption Taskforce released around the same time illustrates, there is much we do not know about corruption in the public sector.
Led by the Serious Fraud Office, the report was designed to assess fraud and corruption risks, incidents and controls within six agencies — Inland Revenue, the Accident Compensation Corporation, Corrections, the Ministry of Social Development, Land Information New Zealand, and Sport New Zealand.
It found internal fraud and corruption were almost certainly being under-reported.
The 446 alleged incidents recorded, ranged from misconduct to potentially serious criminal behaviour — but these incidents only involved internal or insider threats, rather than external fraud involving public funds.
The taskforce said if extrapolated across the wider public sector, the true number of incidents could be in the thousands.
The pilot showed some agencies were not reporting alleged or attempted internal fraud and corruption to law enforcement.
It was shocking to read the pilot identified some unfamiliarity with the nature of corrupt conduct, citing agencies not having sufficient guidance to identify that an attempted bribe of a public official is a criminal offence, regardless of whether it is accepted.
The taskforce is now preparing advice for ministers on options for further action including a mandatory fraud and corruption reporting and compliance system, guidance about when to refer matters to the police, improved systems for public servants to raise concerns anonymously and establishing clear definitions for fraud and corruption. It beggars belief these things are not already in place.
The taskforce estimates fraud losses to the public sector could potentially be between $823 million and $10.24 billion. Hardly small change, even at the lower end.
We have a long way to go to join all the dots which would make New Zealand a place where people will unhesitantly feel confident in the oversight of those drawing from the public purse.
The noise in recent years about our lack of controls on lobbying of our politicians has led to nothing serious being achieved over controlling this.
There is also no appetite for reforming rules around political donations and election funding.
As well as that, our watchdog bodies are under pressure, struggling to do their work, even if it is increasing, with limited or reducing resources and some legislation that needs attention.
Journalists and others fed up with the shilly-shallying which goes on with compliance with the Official Information Act wonder if there will ever be a serious look at this legislation which is more than 40 years old.
The Ombudsman repeatedly calling out offending agencies who promise to do better and seldom do is not the answer.
This year the ManageMyHealth data scandal, where the privacy of about 120,000 patients was breached, highlighted the toothlessness of our current privacy law and the folly of our high trust model in this area.
That the agency has had to endure a $500,000 cut to its budget, leaving it with $7.6m, when it had an increase of 21% in complaints last year makes no sense.
Another example of an agency under pressure from lack of funding is the Independent Police Conduct Authority.
This was illustrated earlier this year when it was revealed the agency advised the Public Service Association it did not have the resources to review the police mental health response change programme although it appreciated it was a significant concern for mental health workers and the union.
Justice Minister Paul Goldsmith’s office was reported as saying the IPCA did not have the power to conduct the review, at odds with the authority’s understanding of the law,
A dismissive and blinkered approach from the minister does not bode well for wider change.
