The Green Party is calling for an independent audit of the New Zealand Debt Management Office (NZDMO), which issued debt on behalf of the government worth NZ$19.5 billion in the year to June, because its staff are "regularly" treated to lunch, dinner, sports and theatre tickets by major banks.
Green Party co-leader Russel Norman said Treasury’s gift and hospitality register, released today, shows Treasury staff received a total of 234 "treats" in the past year valued at NZ$50 or more. The NZDMO is a unit of Treasury and its staff were the recipients of 164 of the gifts.
“The disturbing frequency and value of gifts regularly given to senior staff within the Debt Management Office -164 gifts in total - is something that should be closely looked at,” said Norman.
“In one year alone, Westpac, ANZ, BNZ, Barclays, and Deutsche Bank made 118 gifts to Debt Management Office staff. These included lunches, dinners, and theatre and sports tickets," he added.
“Such a culture of treating is outside of state sector rules and raises questions of a potential conflict of interest. An independent audit is needed to put this matter to rest.”
Norman noted that the NZDMO, which is responsible for managing the government's debt, is tasked with getting the best possible deal on government borrowing. This is typically done through auctions with banks bidding both on behalf of clients and themselves.
"A small change in the terms and conditions of these multi-million dollar loans can have a substantial influence on the final cost of borrowing to the taxpayer," Norman said.
“The banks and law firms are not giving these gifts because they are altruistic. They want something in return."
He suggested that the average New Zealander would look at the gift giving and expect some answers.
"An audit of the Debt Management Office’s behaviour is the best way to clear this up.”
The NZDMO, headed up by Treasurer Phil Combes, issued NZ$19.5 billion worth of government bonds in the year to June 30 and expects to issue up to NZ$13.5 billion in the 2011/12 year.
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