Anti-Corruption Taskforce publishes pilot programme report
The Anti-Corruption Taskforce, led by the Serious Fraud Office (SFO) and supported by New Zealand Police and the Public Service Commission, has released its public report.
The report concludes a six-month pilot programme testing a way to build a clearer, system-wide picture of corruption and fraud risks across the public sector. The Taskforce worked with six agencies, of varying sizes, budgets and functions, to assess their fraud and corruption controls, gather data on corruption-related activity, and potentially identify cases for investigation.
The findings have been aggregated and anonymised to ensure specific vulnerabilities are not disclosed. The report finds that:
- cases of internal fraud and corruption are almost certainly being under-reported due to inadequate prevention and detection controls in some agencies, and gaps in reporting;
- some agencies had strong controls in place, while others were not appropriately prepared to prevent or detect wrongdoing; and
- gaps in the system may be leaving the sector vulnerable, with agencies feeling they lack sufficient guidance on thresholds for passing fraud and corruption cases to law enforcement.
The six agencies took part in the pilot were the Department of Corrections, Inland Revenue, ACC, Ministry of Social Development, Land Information New Zealand, and Sport New Zealand.
The agencies demonstrated a strong commitment to transparency, providing data that helps illuminate the extent of the issue. In total, through the pilot process agencies identified 446 cases of alleged or suspected internal fraud or corruption over the 15-month pilot period. Many were at the lower level of seriousness and considered misconduct, while others were more serious, potentially falling within the SFO’s remit.
However, the taskforce found that these figures likely represent only a fraction of actual activity. Inconsistent definitions, and fragmented recording and referral processes mean the true scale of internal fraud and corruption remains unclear.
International analysis indicates that in comparable jurisdictions between 0.45 and 5.6 percent of public funds are lost to fraud, corruption, and error each year. Applied to 2025 Budget expenditure, this represents an estimated $823 million to $10.24 billion in potential losses.
The report outlines immediate actions already underway to support agencies, including enhanced guidance, tools and resources delivered through the SFO’s Counter Fraud Centre.
Building on the pilot findings and international good practice, the Taskforce has identified options for future work. These include establishing clear and shared definitions of fraud and corruption for the public sector, developing a corruption risk assessment tool, expanding the initiative across the wider public sector, and prioritising capability-building to ensure a more consistent and coordinated system response. Work is underway to provide Ministers with advice on strengthening agency and system-wide resilience.
The SFO acknowledges the leadership of Police Minister Hon Mark Mitchell and Public Service Minister Hon Judith Collins in championing the Taskforce, and thanks the six agencies involved for their openness and collaboration.
Background information