Import licensing corruption—claim

Press, 22 October 1987, Page 3

Import licensing corruption—claim

Political reporter

Corruption and abuse of authority in the Trade and Industry Department have been alleged by the Opposition spokesman on trade and Industry, Mr Philip Burdon (Nat, Fendalton).

Mr Burden, at a meeting of Parliament's Commerce and Marketing Select Committee, called for an independent inquiry into the matter. The Secretary of Trade and Industry, Mr Harry Clark, was questioned by Mr Burdon about irregularities in the Import licensing tendering sector. These Irregularities involved licences for goods worth hundreds of millions of dollars, Mr Burdon said. Two departmental employees were convicted of the irregularities after police investigation and prosecution for criminal behaviour. The Under-Secretary of Trade and Industry, Mr Dunne, said it was not known exactly yet how valuable the licences obtained were. One of the convicted departmental officers had

used three cover names and the other had used four, Mr Dunne said. Two outstanding court cases remained, Including one by a car importer who was suing the department for $5 million, Mr Burdon said. "If the allegations about the department are true it shows a degree of corruption unprecedented in Government departments,” Mr Burdon said. But Mr Clark said the conduct of the two officers had been "plain bloody dishonesty and betrayal of trust” rather than corruption and abuse of authority* The Import licensing system is being phased down, with licences on demand Introduced In July, 1988. The system Involved potential Importers tendering tor licences and paying a premium tor

them If successful. If licences were sought after strongly, as with motorvehicle Import licences, the premium was likely to be high. Two departmental officers were convicted of criminal offences and sentenced In the District Court at Wellington but their names were suppressed. A third person was alleged to have been involved but was not proved to have been involved in criminal activity. The third person had been tendering for licences himself and Mr Clark said he had been given a "broad hint” that he should leave the department — and he had. The three former staff were alleged to have been acquiring licences and selling them, a practice forbidden by the department.