Housing Corp, corrupt, claims Opposition M.P.

Press, 21 November 1987, Page 5

Housing Corp, corrupt, claims Opposition M.P.

PA Wellington Allegations of corruption and malpractice in the Christchurch office of the Housing Corporation have been made by an Opposition M.P. Mr Winston Peters in Parliament. Mr Peters said about 60 breaches of Housing Corporation mortgage policy had occurred last year and that his informant had been threatened with not receiving a mortgage for passing information to him. Speaking during debate on the housing estimates, Mr Peters said a firm called Landbase Securities, Ltd, had paid people buying its 60 flats with

Housing Corporation mortgages $2OOO each, as contracts for redecoration. He said the procedure was a blatant breach of corporation policy, which stated that no part of the purchase prices may be supplied by the vendor. “It should have been obvious to the Housing Corporation their housing rules were being breached if they received approximately 60 mortgage applications all loaned to properties of the same vendor company and all accompanied by a gift deeding of $2000,” he said. “I am not alleging col-

lusion but I am saying managerial and official competence is called into question when contract after contract of this type can go through the Housing Corporation and get passed.” But Mr Peters said what particularly concerned him was that when his informant advised Housing Corporation officials he intended passing the information to Mr Peters, he was told he would never get a corporation mortgage. “That’s corruption, that’s malpractice, that’s throroughly bad in a constitutional democracy,” he said.

The Minister of Housing, Ms Clark, later told the House she had investigated Mr Peters’ claims. “I am informed that immediately the corporation realised Land Based Securities was operating in this way in Christchurch last year, it did not authorise any further loans to its clients on that basis.” she said. “The Housing Corporation itself was reponsible for publicity being given to what Land Base Securities was attempting to do to ensure the public was informed of the practice and that it would not be tolerated by the corporation.”