Former Regional Development Minister Shane Jones. Photo: Pool / Hagen Hopkins / Getty Images
The auditor-general has made two rulings regarding potential conflicts of interest and funding allocations by the government.
In October 2022, ACT party leader David Seymour wrote to Auditor-General John Ryan, raising concerns over a potential conflict of interest between former Regional Development Minister Shane Jones and marine engineering company Aimex Limited over funding for a project in Port Nelson.
Seymour noted Jones' electoral return in 2021 disclosed a $5000 donation from Aimex in 2019.
In 2020, Aimex and Port Nelson Limited applied to the Provincial Development Unit for a loan to redevelop the slipway at Port Nelson. A $9.8 million loan for the project was approved.
But in his inquiry, Ryan found that between the loan's approval in August 2020 and a final funding proposal in April 2021, changes were made to the project's funding structure.
It meant Port Nelson Limited would be solely responsible for the project, and Aimex did not receive any direct benefit.
By this point, Jones was no longer an MP as New Zealand First lost its seats in Parliament.
The auditor-general also found no evidence Jones was aware of Aimex's donation when he made the funding decision, nor did he have any other connection with the company before approving the funding.
Ryan's response to Seymour said although no conflict of interest eventuated, there was a potential conflict which was not identified.
"Properly identifying and managing conflicts of interest is important to maintaining the public's trust and confidence in how public money is spent.
"This is especially so when decisions are being made at the highest level of government (that is, by ministers), or in relation to significant funding decisions."
Ryan said it was imperative there were systems in place for ministers to identify all potential conflicts, even perceived conflicts, so they could take steps to manage them.
Transport Minister Michael Wood. Photo: RNZ / Samuel Rillstone
Transport Choices questioned
Ryan has also released the findings of an inquiry into the government's Transport Choices Package.
National MP Simeon Brown wrote to Ryan in December 2022 concerning the way funding allocations for the package were determined.
Brown said Transport Minister Michael Wood had written to Labour MPs in June and asked them to pitch projects for the $350m package, before councils could make expressions of interest.
"If you have any queries about the Transport Choices Package or would like to bring potential projects in your area to my attention, please contact my office," Wood's letter said.
At the time, National described the project as a "slush fund" for Labour MPs and projects in their electorates.
But the auditor-general's inquiry found no evidence Waka Kotahi received applications directly from MPs, or that the process was politicised for any one party's benefit.
There was also no evidence to suggest funding had been directed to particular electorates.
He said all councils were made aware of the package, and given an opportunity to apply for funding.
However, the auditor-general did find issues with the language used by Wood.
"In my view, that language risked a perception that projects might be considered outside of the published application process, or that the application process might not be fair or transparent and could be open to influence," Ryan wrote.
Ryan said the situation was an opportunity to remind ministers to act cautiously and in a manner promoting the public's trust in the integrity of New Zealand's systems of government.
