Auditor-General resigns

Auditor-General Martin Matthews has resigned following heavy criticism over his handling of a Ministry of Transport fraud case committed under his leadership. “It is with great regret that I have tendered my resignation as Controller and Auditor-General,” he said in a statement. “The issues and speculation about how I handled matters in relation to the fraud committed on the Ministry of Transport during my term as CEO have made it untenable for me to continue in this role.”

Matthews, who served at the Ministry between 20018 and 2016, allegedly ignored requests from staff to investigate fraudulent activities by a Ministry employee.

While Matthew was CEO, a high-level staffer, Joanne Harrison, defrauded the government department of nearly $750,000 and secured employment for friends and family. “I accept I am accountable for everything done in and by the Ministry when I was CEO, and I am ultimately responsible,” Matthews said. An investigation into Matthews will be tabled in Parliament this afternoon.

Matthews resignation follows public calls for his removal from the Auditor-General position from all sides of the political spectrum. NZ first leader Winston Peters said he government was too slow to move on this issue and earlier this week Green Party co-leader James Shaw stated that Matthews conduct made him unfit for the office he held.

 Matthews said he resigned due to the high level of public trust expected of the Auditor-General role.

“It is important to me, and to the office, that the public has complete confidence in the person holding the position of Auditor-General.”