Government warned corruption and 'insider threats' increasing in New Zealand

RNZ News

4 hours ago

Associate Minister of Police Casey Costello.
Photo:
RNZ / Samuel Rillstone
The government has been warned that corruption and "insider threats" are increasing in New Zealand, despite the country's longstanding reputation as a country largely free of it.
An advisory group says the country is poorly prepared to tackle the increasing threat and recommends developing a national anti-corruption strategy and modernising the Crimes Act, which the Minister responsible says is key.
The Ministerial Advisory Group on transnational and organised crime was set up in February to provide independent advice and recommendations to improve the cross-government response to what Associate Minister of Police Casey Costello described as "
an increasing threat
."
Previous reports have said New Zealand was "losing the fight" against organised crime, and specified a need for police to have
greater financial powers to fight it
.
The third report has stated New Zealand's "lucrative market" and established crime networks have made the country "more susceptible than ever" to corruption and insider threats. It also pointed to the "deteriorating situation in the Pacific" as making the region more vulnerable.
It defined corruption as the "abuse of access or authority to advance the objectices of organised crime".
"It is a critical enabler of organised crime, particularly at national borders. It grants criminal networks access to protection, sensitive information, and operational impunity.
"This is a real and increasing threat," the report said. The group was told by enforcement agencies about "trusted insiders" at ports and airports helping to retrieve concealed shipments of illicit drugs before customs inspections.
"That information is consistent with an unpublished global report which estimates that 70 percent of maritime seizures worldwide involved links to trusted insiders."
It raised a specific concern in the Pacific where exposure is increased due to expansive maritime borders, strategic trade corridors and growing cross-border flows of goods and people.
A brick of cocaine seized by Customs last week in the Port of Tauranga.
Photo:
Supplied / Customs
"When individuals in border security, customs, or immigration are compromised, criminal groups can exploit these weak points to smuggle drugs, weapons, other illicit goods, and people with minimal detection.
"Bribery, coercion, and cronyism can transform ports, airports, and checkpoints into open channels."
If corruption was left unchecked, the report warned it could erode the integrity of New Zealand's institutions and undermine its collective security.
"We are already seeing increasing pressure on Pacific nations which have limited capacity to detect, investigate and prosecute organised crime threats.
"The financial incentives offered by organised crime groups can be tempting - especially for those working in jobs with useful access, but low pay, in New Zealand and within the Pacific."
The advisory group reports to Costello who told RNZ she was not surprised by the contents of the report, except to learn that New Zealand was the only Five Eyes member who did not have an anti-corruption strategy.
She did however believe New Zealanders might be shocked to learn corruption was getting worse, "we've kind of considered ourselves as a little bit of a haven".
The report specified New Zealand's "reputation as a country largely free from corruption has long been a source of national pride and international credibility".
But also pointed this had led to a "degree of inertia," referencing Julie Haggie, chief executive of Transparency International NZ, who said in the report "New Zealand's response to increasing corruption pressures over several years has been lacklustre and complacent".
A corporate team during Transparency International Papua New Guinea's 2018 Sir Anthony Siaguru Walk Against Corruption.
Photo:
TIPNG
"New Zealand is poorly prepared to deter and tackle the increasing threat of corruption, but that is not to say nothing is being done," said the report.
Costello said the report was not suggesting organisations were corrupt, but the ability for organised crime to target individuals was there.
"That's where we see that familial or cultural pressures, that ability to have control over individuals, and that's not just in the drug world."
She said New Zealand was not out of control, but the country needed to shift the way it was doing things, strengthen legislation and put clear strategies in place.
Costello believed bringing the Crimes Act up to date to deal with corruption was one of the key recommendations. She said work being done at the moment was bringing agencies together to have consistency around sharing information.
Another recommendation was to have a centralised agency that would have oversight across all agencies.
"Whether that's in the public service commission, or whether it's in police or SFO [Serious Fraud Office] or a new agency, it's having that one oversight so that we work more cooperatively."
In regards to the Pacific, she said it was important New Zealand supported its economic growth and viability.
"When people are poor, then the amount of money you need to corrupt someone is relatively low.
"Leaning in more to support those economies to help them not just gain knowledge, but actually keep these systems in place.
"How do they optimise their control of their border so they're collecting excise, that they're optimising the revenue they can get from legitimate business, as well as ensuring that they aren't corrupted."
She said the reports were about making New Zealanders more aware about organised crime and an appreciation of the challenges that it presents.
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