The Serious Fraud Office is to investigate possible instances of corruption at the Accident Compensation Corporation after a review of property transactions uncovered matters which have already cost one senior staff member their job.
ACC chief executive Jan White said yesterday that "matters of concern were uncovered" by an investigation of "a staff member's failure to follow internal policies and procedures".
"Owing to the nature, potential scale and duration of those matters we believed it was appropriate to refer them to the Serious Fraud Office", she said.
The staff member, who ACC Minister Nick Smith confirmed was employed at the corporation's national office, has been dismissed.
Dr Smith said concerns had arisen from "a review of ACC's lease arrangements and in terms of purchasing building services for ACC's offices".
The review which covered about a dozen projects in recent years where ACC had upgraded or moved into new premises found a number of procedural failings.
While he had not been given any estimates of the amounts of money involved, the sums involving property for any government agency were generally large, he said.
The fact the SFO had been called in "suggests that there is some evidence of unsavoury behaviour, albeit it's for the SFO not the ACC or me to make conclusions that there has or has not been corruption".
SFO director Adam Feeley said his office had received documents yesterday morning and had initiated a preliminary investigation.
Once that initial assessment was completed a decision would be made whether the SFO or the police would take the investigation forward.
However, instances of bribery or corruption - particularly where public officials are involved - are priority cases for the SFO, Mr Feeley said.
The initial review of the transactions last year was prompted by Dr Smith's concerns that "the taxpayer had not got good value for money" when the ACC moved into new offices in Nelson.
The property was a car yard when it was bought for $1.2 million by Wellington property development company Lace Bark Management.
According to Lace Bark's website, the company erected "a state of the art" commercial building on the site in 2008, ACC took a long-term lease over the building and took possession early last year.
QV says Lace Bark sold the property last year for $4.82 million.
Lace Bark boss Lloyd Cundy said the deal was "a normal commercial transaction". He was not aware of anything unusual in his dealings with ACC's property team.
"I'm a developer, I'll develop where I'm needed and that's what I've done. I've moved on and it's as simple as that."
He could not recall whom he had sold the building to.
ACC property deals referred to fraud office
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