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New Zealand First has cast doubt on plans to blunt the powers of investigators to probe serious fraud.
The Government yesterday unveiled proposals for a new branch of the police to investigate top-level crime, the Organised and Financial Crime Agency.
The agency will absorb the soon-to-be-closed Serious Fraud Office but will not inherit all the SFO's sweeping powers to compel answers from those it investigates.
Labour will be expecting the help of support party New Zealand First to pass legislation merging the SFO into the police.
New Zealand First law and order spokesman Ron Mark yesterday said his party would be likely to support sending the bill setting up the agency to a select committee for further discussion, but questioned the wisdom of watering down the SFO's powers.
"We have a piece of legislation that empowers the investigation of high-level, complex white-collar crime that requires the skills of forensic accountants to uncover, but they will have less power to do so than they had before.
"Is that a good thing? Hard to understand how it could be."
The SFO's 33 staff will remain in Auckland, and the Government intends the merger with the police to be complete by July 1. The SFO will become one of a number of task forces operating under the agency's banner: its staff will become police employees but will not be sworn officers.
Investigators will still be able to obtain a production order, forcing the handing-over of data or documents, and examination orders, which compel people to attend a police interview.
However, they will need to apply to a judge to obtain either order.
In addition, they will lose the SFO's power to override a person's right to remain silent - changes Police Minister Annette King said had been made because SFO powers breached the Bill of Rights.
Ms King said judicial oversight of the agency would be similar to that police operated under now, when they needed a judge to endorse an interception warrant or search warrant.
"Examination orders are only provided at this stage to financial crime. Within the new agency, the examination orders will be available to organised crime as well as to financial crime, so the safeguard that is put in there is judicial oversight, and it is on the say of the Commissioner of Police. So you have some direct accountability as to who is using those powers."
National's law and order spokesman, Simon Power, called the plan a mishmash of Government-speak that would do nothing to crack down on gangs and corporate fraudsters.
"I don't think you can have an agency tasked to deal with fraud in an effective way with lesser powers than the SFO. I would think you would have to import those powers to a new agency."
Deputy Police Commissioner Rob Pope conceded that SFO staff had had concerns about where they would fit into the police.
But he said: "We have been doing our very best in terms of discussions with them to assure them that their current set of skills and abilities will be used to maximum effect."
PROBES MAY TAKE LONGER
Fraud investigations may take a little longer once the Serious Fraud Office is merged with the police, SFO chief executive Grant Liddell says.
The SFO's 33 Auckland staff were given details of the changes to their roles at a meeting on Tuesday.
Their current powers will be altered to reflect the strictures police work under, and they will have to seek judicial permission to execute production and examination orders.
Mr Liddell said that might mean orders would take longer to process because of the time needed to draft applications. He said he did not believe the SFO had ever abused its powers, but needing judicial permission for orders was a safeguard for the public that investigators would get used to.
"It is likely to mean, I hope, the likelihood of any orders we produce being overturned is pretty low."
The changes were in part driven by the SFO coming under the police umbrella and being required to work by police methods. The SFO, after the merger, would still be "going after crooks" and would be doing so with enthusiasm and energy, Mr Liddell said.
He said SFO staff were surprised to learn their merger with the police could be completed as soon as July 1, assuming Parliament passed the necessary legislation.
"They had a range of questions about the changes as they affect them."
