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Wednesday, 04 April 2012 15:44

ACC leadership to be investigated

Auditor-General Lyn Provost is to launch an investigation into governance issues at ACC following requests from Labour MP Andrew Little and Green MP Kevin Hague.

Prime Minister John Key had refused to launch a probe into the issues, saying separate investigations by the police and the privacy commissioner were sufficient.

ACC hit the headlines after a major privacy breach saw thousands of client files accidently sent to another claimant, Bronwyn Pullar.

Provost said the inquiry would look into aspects of ACC's governance that would not be examined by the other investigations into matters triggered by the controversy around Pullar.

"The inquiry will examine how ACC manages  a range of risks at the Board level of the organisation. It will also examine how any matters relating to ACC claimant Ms Pullar that came to the attention of the Board or individual Board members were dealt with," she said.

As well as this inquiry, Provost intends to develop an audit proposal on ACC's general operations, with a focus on case management, for the Office's work programme in 2013/14.

She said she she would not be making any further comment on the inquiry until the work was completed.

Little welcomed the inquiry, saying Labour hoped it would be widened to include the behaviour of ministers in the case.

"The inquiry by the Auditor-General into how ACC manages conflicts of interest and relationships between board members, clients and staff is an opportunity to examine the real problems plaguing the agency," he said.

"We note that while the terms of reference focus on the Board's actions and their interaction with clients and staff, there is also a clause allowing the Auditor-General to look into 'any other matters' she considers desirable. Labour hopes that will include the behaviour of ministers who have been involved in this case."

He said there needed to be trust and confidence in ACC and assurances it treated every client equally.

"At the moment, it is easy to see how New Zealanders could have gained the impression from the Bronwyn Pullar saga that if you know someone from the National Party, you'll be treated differently."

Little said the announcement brought the number of publicly-funded inquiries into the handling of Pullar's case to five.

"We still believe a single high level inquiry by a QC or Judge would be more suitable," he said.

The inquiry into ACC will examine:

- the policies and practices at ACC for managing risks relating to conflicts of interest, legal
compliance, and communications between Board members and clients and staff;
- the policies and practices that apply when claimants personally contact Board members;
- how any matters relating to Ms Pullar that came to the attention of the Board or individual
Board members were dealt with; and
- any other matters that the Auditor-General considers it desirable to report on.

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