Many New Zealand agencies have contractors in controlling positions, although the State Sector Act precludes them having financial authorities. The probability is that similar risks exist. Some characteristics in the Australian case reflect events at Otago DHB four years ago. That agency’s IT manager was later convicted of corruptly acquiring approximately $17 million.
ICAC recommendations include reviewing the use, qualifications, ratio and management of contractors.
The Australian case is small beer compared with fraud by top management in Chinese agencies. According to media reports, the incidence of corruption by ”top executives” is increasing although the sums involved are reducing. In just 88 publicly reported cases last year in State Owned Enterprises, an average per incident of NZ$6.5 million was taken, compared with almost NZ$12 million per incident in 2010. The largest reported sum involved the controller of a State owned furniture manufacturing business who fraudulent extracted approximately $NZ 950 million. He was sentenced to death, as were five other agency leaders. (Two corrupt officials were executed last year). Eleven others were given life sentences.
An official survey apparently found that 60% of Chinese are ‘very confident’ or ‘relatively confident’ about the Chinese Government’s anti corruption measures.