Ministry man cracks computer to steal $2m

By NICOLA BOYES

A Ministry of Health consultant working on the meningococcal B immunisation programme created a fake Australian identity to steal millions of dollars from the Government.

IT project manager John Bernard Denison, 49, had tried five times to steal from the Ministry's HealthPAC banking system.

When Australian-born Denison finally cracked the system, on September 21, he helped himself to $2.3 million.

Police said he could have got away with $25 million had he not been caught.

He was arrested last week as he sat at his desk. Yesterday, he admitted the fraud.

The $2.3 million Denison stole was destined for the bank accounts of medical laboratories.

But using the name Alan Dean Bennett, he re-routed the money into an ASB account he had set up using a forged Australian passport, driver's licence and tenancy agreement he made on his ministry office computer.

Using the forged documents, he was able to get a post office box and an IRD number, and to open bank accounts at the ASB and BNZ.

Between September 10 and 17, he tried unsuccessfully to steal a total of $25 million.

On September 21 he hit the jackpot.

He transferred the money into his ASB account in three sums - $301,379 destined for the Hamilton Medlab, $484,183 meant for Southern Community Labs and $1,563,805 destined for the Diagnostic Medlab.

When he went to work the following day, he checked his bank account balance, withdrew $800, transferred $9800 to the BNZ account and sent $908,000 to his Australian solicitor as a deposit on a Sydney apartment - a property deal which would otherwise have lapsed that day.

Denison, who previously worked for the ACC and had no criminal record, was found out when the money did not arrive in the laboratories' bank accounts and staff called the ministry.


Denison, who was employed by the ministry in March, yesterday pleaded guilty in the Wellington District Court to possessing a false passport, three charges of obtaining by deception and a charge of accessing a computer for dishonest purposes.

Details of how Denison cracked the ministry computer system were suppressed, but a police summary said he got into the HealthPAC banking system although he had no authorisation to do so.

HealthPAC is a payments system which deals with millions of dollars every day, as money is transferred between the ministry and New Zealand's 21 district health boards to pay hospitals and doctors.

Detective Sergeant Dave Thornton said police had only photocopies of the forged passport Denison used, but inquiries were being made in Australia .

It is the second million-dollar fraud committed by a Government employee in the past 12 months.

It follows the sentencing of Wellington woman Lisa Clement, who stole $1.9 million from the Ministry of Social Development.

State Services Commissioner Mark Prebble said yesterday that the majority of public servants upheld the highest of ethical standards.

But the National Party health spokeswoman, Judith Collins, is calling for a full select committee briefing.

"If he's done it, it means others could have done it," she said.

"It calls into question the legitimacy in terms of integrity of all the computer systems."

HealthPAC group manager Jeannie Bathgate said all of the money Denison stole was recovered within 24 hours.

Experts had been called in to make sure such an incident did not happen again.

Health Minister Annette King would not comment on the case.

Denison will be sentenced next month.