Guilty of being a beneficiary
Kay Brereton Co-convenor of the National Beneficiary Advocacy Federation of NZ is concerned that “ government plans for
changing the rules for investigating benefit fraud constitutes an abuse of human rights, which removes the privacy
rights of a class of citizens.”
“While we support the idea of making both parties to a fraud liable for any debt relating to fraud where a relationship
in the nature of marriage is proven, we are very concerned at the removal of the requirement for investigators to first
seek information from the parties under investigation.”
“All citizens of New Zealand believe they have the right to be treated as innocent until they are proven to be guilty.”
“This will no longer be the case for superannuitants, students, and anyone else who has received assistance from Work
and Income, and finds themselves the subject of an investigation by the Benefit Fraud Investigation Unit.”
“In 1997 Parliament amended the Social Security Act to require the Ministry of Social Development to develop a code of
conduct to guide the use of the information collection powers they exercise under section 11. This amendment to the Act
clearly stated a requirement for information to first be sought from the beneficiary unless there exists 'reasonable
cause' to believe that to do so would be 'likely to prejudice the maintenance of the law'. This amendment was enacted in
part as a result of recommendations made by the Privacy Commisioner in 1994 as a result of complaints about the variable
use of Section 11 by Ministry staff.”
“I understand the government has ammended the code of conduct to allow the National Fraud Investigation Unit to treat
anyone under investigation by them as “likely to prejudice the maintenance of the law”, everyone under investigation
will be treated as guilty and likely to delay or impede an investigation.
“At present the Social Security Act requires the Ministry to first seek information from the beneficiary before seeking
it from a third party, it is the effect of this policy change to ignore the legislation.
“This intended change to policy means that the Fraud Investigator will first go to; current and former landlords,
employers, children’s schools and day-care, banks and others, advising them that the person is a beneficiary under
investigation for fraud.”
“In many cases an explanation from the accused party will resolve the investigation meaning little or no further
resources are needed.
“Of the 16,266 allegations in 2010 only 2,424 resulted in a debt (14.9%) and of these only 690 were found to have
warranted prosecution (4.24%).
“Often the allegation leading to an investigation will have a malicious source, resource material from Women's Refuge
refers to “threatening to dob you in to welfare” as a common threat made in domestically abusive relationships.
“I am not satisfied that this change will not breach the privacy of individuals by disclosing to third parties that the
individual is a beneficiary accused of fraud, this may have serious implications in relation to employment, housing and
treatment by members of their community.”
“This is a stark contrast to the treatment of those under investigation for tax fraud; a fraud which costs the country
far more than benefit fraud. Tax fraudsters are encouraged to make voluntary disclosure as early as possible to reduce
the penalities imposed by the state.”
ENDS