National calls for SFO director's head

By VERNON SMALL

Serious Fraud Office director David Bradshaw is under pressure to resign after he admitted he told two top public servants, including the head of the Prime Minister's Department, that he was investigating alleged misuse of National Party campaign donations.

But he has refused to step down, and Attorney-General Margaret Wilson has backed him.

She said yesterday that she had absolute confidence in Mr Bradshaw.

"I think he's doing exactly what he should be doing and not [being] influenced by all this pressure that is being placed on him, and somehow trying to destabilise him and stop the investigation."

She said it was members of the organisation being investigated, the National Party, who were exerting the pressure.

"I think that is not appropriate. He should be allowed ... to get on and do his job. If it's as they say it is then there will be nothing to worry about."

Mr Bradshaw appeared before a select committee yesterday to discuss international financial scams.

At the fractious meeting, MPs agreed to allow questions relating to his National Party probe.

Mr Bradshaw said he told Ms Wilson and National leader Bill English last week about the investigation, understood to relate to donations worth about $250,000 made to National by merchant bank Fay, Richwhite before the 1996 election.

But he also disclosed for the first time that he told Mark Prebble, who heads the Department of the Prime Minister and Cabinet, and State Services Commissioner Michael Wintringham.

After the meeting, National justice spokesman Wayne Mapp said Mr Bradshaw should quit.

"He's supposed to be an independent officer. He is responsible to the Attorney-General.

"But he is certainly not responsible to the Prime Minister's office, where Dr Mark Prebble works, and he's not responsible to Mr Wintringham.

"He has no business whatsoever talking to those two people.

"I believe ... he has compromised his independence to the point that we have lost confidence in his ability to be the Serious Fraud Office director, and therefore he should go," Dr Mapp said.

National deputy leader Roger Sowry said Mr Bradshaw's actions were "grossly improper, partisan and unprofessional".

"If Mr Bradshaw feels he has to please the Prime Minister and inform her of an investigation to stay on the right side of the Prime Minister, he is not the man to have an independent role in the SFO and he should resign and take a partisan role somewhere else."

Mr Bradshaw denied he had compromised his independence.

"I made my decision on this matter quite independently without consulting anybody else, acting independently to have an investigation. I did that on the evidence before me," he said.

Who he advised after that was a separate matter.

"It does not compromise my independence at all.

"I followed standard procedures. I sought advice from colleagues when I felt it was necessary."

He had spoken to Mr Wintringham as head of the public service and to Dr Prebble "for his guidance".

The SFO Act says the director may inform others who he "is satisfied has a proper interest in receiving such information".

Ms Wilson said Mr Bradshaw's actions met that requirement.

He had told Dr Prebble because he was aware the media were inquiring.

A spokesman for Helen Clark said Dr Prebble had informed the Prime Minister last week.

Earlier, Mr Bradshaw refused to tell the select committee who triggered his investigation.

He said he had "perhaps in his naivety" thought National leader Bill English, not party president Michelle Boag, was the right person to inform. He had phoned him last week.

He expected Mr English would tell the appropriate people in the National Party.

"I am working on the investigation as a matter of urgency. I am aware of the sensitivity of it and I will have a conclusion as soon as possible."

Mr Bradshaw, a legal adviser to the State Services Commission since 1974, was appointed director of the SFO in November 1997.

He is a barrister and solicitor.

Ms Boag has said there was nothing untoward in what happened to two payments from Fay, Richwhite, the company she worked for in 1996.

To keep the donor's name secret the money was paid into a trust account at then-president Geoff Thompson's law firm, Macalister Mazengarb, in March 1996.

Mr Thompson has confirmed that the money was invested and held there until June 1996.

Ms Boag has said up to 7 per cent of the donation was used to pay expenses for Australian pollster Mark Textor.

The rest was paid into the party's account.