HERALD WEEKLY ISSUE 520: 14 July 2010

Director of Audit challenges allegations of misconduct

Director of Audit Paul Allsworth has challenged allegations of misconduct leveled against him by former Secretary of Finance, Sholan Ivaiti.
The Herald has been informed the allegations were set out in a very detailed written complaint by Ivaiti to former Minister of Finance Sir Terepai Maoate nearly a year ago, on 17 July 2009.
As Ivaiti had not heard what steps had been taken, he referred the whole matter to current Finance Minister Hon Wilkie Rasmussen on Friday 25 June 2010 with copies to Rasmussen’s Ministerial colleagues and PERC Chair Marie Francis. At the same time he also lodged a complaint with the Commissioner of Police requesting an investigation into the allegations.
Rasmussen advised the Herald on Monday morning he had received a letter and papers from Ivaiti and understood Allsworth was seeking legal advice. He declined to comment further.
On Monday the Herald spoke to Allsworth regarding the allegations and on Tuesday morning he issued the following statement to media:
The Director of Audit, Paul Allsworth, responds to claims made by the former Financial Secretary, Sholan Ivaiti of criminal wrongdoing by the Director of Audit.
“The timing of Mr Ivaiti’s publication of these matters speaks for itself” says the Director. “The allegations are both malicious and highly defamatory”
“The matters complained of date back to late 2008, and appear to have been known to Mr Ivaiti for well over a year. The fact Mr Ivaiti has chosen to hold off pursuing these matters until the eve of the Toagate Report should tell the public exactly what his motives are in raising these complaints.”
It is unfortunate that Mr Ivaiti remains “in denial” over his role in the Toa transaction and is trying desperately to deflect public attention away from the real issues. It’s interesting to note that he, himself, has now left the country for Australia and this seems to be a cheap parting shot by him.”
“I have called for a full review of the matters complained of, by the Public Service Commissioner, and I understand the Minister of Finance, Audit and Attorney General, Hon. Wilkie. Rasmussen, like myself, await the results of that review with interest.
I am confident I will be totally exonerated of any wrongdoing and will continue to pursue my statutory obligations of audit and enquiry without fear or favour.”
The Herald was informed Ivaiti is very concerned because the Director of Audit is duty bound through the oversight legislation to conduct himself according to the intent and purpose of the law which gives him oversight investigative powers over the affairs of Crown personnel, entities and where issues connected with the use of public funds is concerned.
Apparently the gist of Ivaiti’s concern is the old question, “Who audits the Auditor?”
Ivaiti has also made allegations against Public Service Commissioner Navy Epati. When the Herald spoke to Epati on Tuesday morning about the allegations he advised he had not been informed of them and would comment later in the day. At the time of going to print, Epati had not contacted the Herald.
The Herald understands Ivaiti left Rarotonga on Monday for Australia where he has employment.

By Charles Pitt

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