National Counter Fraud and Corruption Strategy (NZ0027)

Objective

Implement a National Counter Fraud and Corruption Strategy that unites and coordinates government agencies’ work to counter fraud and corruption risks. This will strengthen the system’s ability to identify and combat fraud and corruption risks and enhance transparency and accountability.

Ambition

To design and implement a National Counter Fraud and Corruption Strategy that will support government efforts to address fraud and corruption risks. Phase One of the Strategy will focus on fraud and corruption that targets public funds and resources, helping tax dollars go to needed public services and projects. Implementation of the strategy will improve the ability to safeguard public funds, while increasing the public’s trust and confidence in government as a responsible steward of public resources. The initial focus of this commitment will be on strengthening the capability of the public sector. Future development of the strategy may include business and the private sector.

Status Quo

Despite its reputation for a high integrity Public Service, New Zealand is not immune to the increasing risks of fraud and corruption being faced in many parts of the world. Contributing factors include the rise of the digital economy, fragmented regulatory frameworks across jurisdictions, and trading with countries ranked as having higher levels of corruption. Government procurement has a relatively low level of transparency and emergency public spending has increased dramatically in response to the COVID-19 pandemic. New Zealand Police estimate between $700m and $1.4bn in government funds is lost to fraud every year. Research commissioned by the Serious Fraud Office estimates that, taking into account loss due to error, between $5bn and $10bn is lost due to fraud and error every year. These estimates do not include losses attributable to corruption. At a system level, a lack of information about the true extent of fraud and corruption, overlapping operational mandates, and different priorities of agencies involved can present obstacles to government working in a coordinated and consistent way to address fraud and corruption risks. New Zealand citizens quite rightly expect government agencies to act as responsible stewards when managing public funds.

Te Tiriti o Waitangi

Implementing a National Counter Fraud and Corruption Strategy to address fraud and corruption risks may deliver positive benefits to Māori as both citizens and iwi, to the extent that Māori are over-represented in socio-economic indicators for need, use of public services and experience of inequality. Acts of fraud and corruption often target government funds and resources, reducing the available funds for quality public services, diverting aid away from those most in need, deepening inequality, and eroding trust in government.

OGP Values: Transparency, Integrity, and Accountability

Milestones

Verifiable and measurable milestones to fulfil the commitment | Start date - End date

Design a National Counter Fraud and Corruption Strategy that has clearly defined objectives and explains how they will be achieved | August 2022 - August 2023

Implement Phase One of the Strategy focussing on lifting public sector capability, including an education programme for senior leaders | September 2023 - December 2024

Explore with business, civil society and stakeholders how to extend future iterations of the strategy to the private sector | July 2024 - December 2024

Action Plan Review

Commitment 4. Design and Implement a National Counter Fraud and Corruption Strategy

● Verifiable: Yes

● Does it have an open government lens? Yes

● Potential for results: Modest