M.P. alleges cover-up

Press, 26 December 1986, Page 1

M.P. alleges cover-up

PA Wellington The Government’s handling, of the Maori loan affair is a “sordid cover-up,” according to the Opposition spokesman on Maori Affairs, Mr Winston Peters.

Repeating his call for a full public inquiry into the $6OO million loan negotiations, Mr Peters said the State Services Commission report did not explain some actions and events and glossed over inactions. Some documents in the possession of the Treasury and the Maori Affairs Department were missing, he said. Mr Peters accused the Prime Minister, Mr Lange, of arrogance and of contempt for proper public scrutiny of the actions of his 6 'Ministers.

"Mr Lange knows his constitutional duty.” It was now to order a full public inquiry — an action which would place him alongside (former Australian) Prime Minister Whitlam, who had two Ministers accused of acting in a similar fashion and resigned.

“We do not have a lesser standard of constitutional Government and we are not a banana republic,” Mr Peters said.

“The matter is a sordid cover-up of matters that go to the core of sound Government.” Mr Peters renewed his

call for the resignation of the Minister of Maori Affairs, Mr Wetere, and others who he said knew about the loan proposal.

“If Mr Wetere knew of the loan but did not tell his Cabinet colleagues, he must resign.”

Mr Wetere would have been in direct contravention of the Public Finance Act if he did not inform his colleagues. If no Minister knew of the proposals until late November, the head of the Treasury, Dr Graham Scott, must come under scrutiny, said Mr Peters. “If Dr Scott knew and failed to inform any of the Finance Ministers of the breach of the Public Finance Act, he is clearly guilty of misconduct and must be forced to resign.”

Mr Peters said it. was inconceivable that Mr Wetere, who had a reputation for being a team man, would not have told one of his Cabinet colleagues about a “suspicious loan five times the size of his whole department’s vote.”

If any of the Finance Ministers knew, it was their duty to stop negotiations immediately, which had not been done.

“If any of the Finance Ministers knew and failed to act, they must clearly resign for contravening the Public Finance Act.”