KEY POINTS:
Government agencies are investigating how a man allegedly ripped off the welfare system to the tune of $3.2 million.
Wayne Thomas Patterson of West Auckland has been charged with six counts of obtaining a document for pecuniary advantage relating to an alleged benefit fraud that cost the taxpayer $54,000 a fortnight for more than two years.
A police inquiry uncovered documents including birth certificates, passports and driver licences supporting more than 120 identities, the Herald On Sunday reported yesterday.
Patterson, 47, rented a modest flat in Massey for $230 a week but decked out the interior with designer furnishings and established a garden with $50,000 worth of plants.
Police and Ministry of Social Development investigators searched the property and allegedly found $200,000 in cash and 12 gold bars, worth $31,000, hidden under the shower.
A neighbour said police searching the garden found $750,000 in $50 notes.
National Party welfare spokeswoman Judith Collins said yesterday that the extent of false identities allegedly used in the case indicated "systemic failure across multiple government agencies".
The Herald On Sunday reported that police would allege Patterson used stolen birth certificates to obtain driver licences, then bank accounts and passports.
Internal Affairs last night said no New Zealand passports were found in the raid but the department would continue to help police investigating the case if required.
A department spokesman could not say whether legitimate New Zealand birth certificates were among the documents found but said birth certificates were available to the public.
Mrs Collins sought an assurance from the Government that it would ramp up identity checks to ensure there was no repeat of the alleged scam.
Social Development Minister David Benson-Pope said he had confidence in the ministry and its systems to prevent, detect and follow up cases of fraud.
The Ministry of Social Development is promising to release full details of the case once the prosecution is complete, but chief executive Peter Hughes has denied there are holes in the social welfare system.
A ministry spokeswoman said Mr Hughes was "extremely focused on a successful prosecution and recovery of the money".
The ministry did not want to compromise the police investigation and would make no further comment.
Land Transport New Zealand spokesman Andy Knackstedt said the authority would look at how Patterson allegedly obtained driver licences under different identities.
"Any case where there's a person with fraudulently obtained licences or multiple licences is obviously quite serious and is something we would be involved in the investigation of."
Mr Knackstedt said an investigation would show if any improvements were needed to the licensing system.
"You can put in all the extra security measures you want but you can never guarantee that somebody who is determined to commit fraud isn't going to do it.
"We need to strike a balance between keeping the driver licensing system easy to use and relatively inexpensive with making it as secure as possible."
Mr Knackstedt said Land Transport worked closely with the Immigration Service and Internal Affairs but a driver's licence was not designed to be an identity card.
Patterson is in jail awaiting trial.
