Key carpets Worth after learning of raid by SFO

Prime Minister John Key has had an "extensive discussion" with Internal Affairs Minister Richard Worth, after learning that the Serious Fraud Office raided a company he was involved with.

Mr Key said he phoned Dr Worth on Saturday evening about what he expected of him as a minister.

Mr Key first gave Dr Worth a "bollocking" last Monday over a private trip to India during which he spoke in his ministerial capacity and promoted a company in which he had an interest. Dr Worth resigned from two companies with links to India.

But it was revealed in Parliament on Thursday that he still had shares in a company with links to India, WSD Global Markets, which had also been caught up in an SFO investigation.

Dr Worth then disposed of his WSD Global Markets shares.

Mr Key said their Saturday discussion did not go into detail of the SFO investigation but rather the standards Dr Worth had to meet.

"I've clearly spelled out my expectations, and I've got an assurance from him that he is meeting those expectations."

The SFO used its powers to seize information from the offices of WSD Global Markets - a brokerage firm - on December 9. The office was looking for information on a related company, the Cook Islands-based Wall Street Banking Company (WSBC).

SFO director Grant Liddell yesterday said the investigation into WSBC and "associated entities" was ongoing.

Dr Worth told the Herald he did not tell the Prime Minister about the SFO investigation because it was not into WSD directly. The information seized was not related to WSD Global Markets and its activities, but about WSBC.

He added that he found out about the raid soon after it happened from fellow director Matt Robson, the former Alliance MP.

"I later heard from [Mr Robson] that the SFO had unequivocally indicated there was no issue that concerned them about WSD."

He said he had not seen any documentation to this effect, but he believed Mr Robson to be "a man of honour".

He added that he did a "whole lot of checks" on the company before he became a director and shareholder.

Dr Worth said he resigned as a director of WSD Global Markets because he became a minister and the company was intending to list publicly. The resignation had nothing to do with the SFO investigation.

* Timeline

Richard Worth, shares and the SFO September 19,

2008:

Richard Worth becomes director of WSD Global Markets.

November 7: Worth becomes shareholder in WSD Global Markets.

November 19:

Worth sworn in as minister.

December 9:

Serious Fraud Office raids WSD Global Markets.

January 1, 2009:

Worth resigns as director of WSD Global Markets.

January 20:

Worth transfers WSD Global Markets shares into family trust.

April 2:

Prime Minister John Key learns of SFO involvement when it is raised in Parliament.

April 3:

Worth disposes of WSD Global Markets shares.