Spotlight on Treasury to find People's Bank mole

By FRANCESCA MOLD

A hunt has begun within Treasury for the source of a string of leaked documents the Government says are designed to sabotage its proposed People's Bank.

Treasury secretary Alan Bollard yesterday said that he had appointed former Justice secretary David Oughton to investigate whether commercially sensitive reports had been leaked by officials in the department or its subsidiary, the Crown Company Monitoring and Advisory Unit.

The investigation was launched after Deputy Prime Minister Jim Anderton - furious the information was being used to attack the bank, which is promoted by the Alliance party - complained to Prime Minister Helen Clark and other senior ministers.

Mr Anderton said there was a concerted campaign to undermine the bank with the leaking of selective, negative information to Act MP Rodney Hide.

A flurry of publicity based on the documents, including discussion of plans to close some NZ Post branches and stop Saturday mail delivery, has embarrassed and angered the Government.

Ministers were also angry at the leak of extracts from a Treasury report into economic policies in a weekend newspaper.

This was seen as confirmation that the release of confidential documents was not a random event.

Mr Anderton said only a small group of people had access to the documents, some of which even ministers and NZ Post board members had not seen.

He said there had been too many leaks for it to be accidental and warned if those responsible were caught they would not have a "very long period of employment".

"This material is being gained or given illicitly," Mr Anderton said.



"Whoever is doing it would be in serious breach of their obligations to their employer."

Mr Hide said the Government was "looking in the wrong place" for the source.

If it was up-front about its plans for the bank, it would not be embarrassed by leaked information.

"The real sabotage is the proposal to have a bank," he said.

"The problem for Jim Anderton is that the documents don't back up his public statements about the bank."

Mr Hide yesterday alleged that Mr Anderton had breached the Securities Act and regulations with statements promoting the bank made on a television show last year.

In Parliament yesterday, he asked if official advice had been received which showed Mr Anderton had broken the law.

Treasurer Michael Cullen said that if Mr Hide had a case against Mr Anderton, he should pursue it through the courts.

Mr Hide has written to the Securities Commission and Registrar of Companies complaining about Mr Anderton's alleged breach of the Securities Act.

He says Mr Anderton made a public offer without referring to an investment statement or prospectus, declared the securities free from risk, had no certificate for his advertisement and made misleading statements.

The statements exposed Mr Anderton, the Government and potential directors of the People's Bank to civil and criminal liability, Mr Hide said.

He called on the Registrar of Companies to prosecute.