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Source: New Zealand Defence Force

24 June 2020

The New Zealand Defence Force has established a Court of Inquiry into the management of Non-Public funds following the sentencing of a former civilian employee for serious fraud.

In September 2018, the NZDF notified the Serious Fraud Office (SFO) of alleged misuse of Non Public Funds at Waiouru Military Camp by an employee.

Following an investigation, charges were laid by the SFO of theft and false accounting in relation to non-public funds, totalling $225,742.83.

The individual pled guilty to the charges in the Palmerston North District Court on 20 May 2020 and was sentenced today.

The NZDF notes the guilty plea by the former employee and the sentence imposed by the court. The NZDF has deliberately waited for the court proceedings to be completed, so that the Court of Inquiry did not interfere in any way with the criminal justice process.

The Court of Inquiry will look into processes around the management of Non-Public funds to strengthen areas that are identified as vulnerable. 

Brigadier Rob Krushka, Chief of Joint Defence Services, confirmed that an activity was already underway to improve Non-Public fund management prior to this offending being discovered.

A project was initiated to design and implement a new operating model for the management of Non-Public Funds. 

The results of the Court of Inquiry will assist in enhancing the new operating model which will help minimise future risk.

Non-Public funds provide services and amenities that help maintain the health, wellbeing and retention of NZDF personnel. A Non-Public fund refers to money raised by New Zealand Defence Force personnel, for personnel, as opposed to taxpayers’ money.

The Army Non-Public Funds are a registered charity under the Charities Act 2005.

MIL OSI