Showing posts with label Auditor-General. Show all posts
Showing posts with label Auditor-General. Show all posts

06 September 2012

Not cute

A blog post from Off the Couch by Kyle MacDonald
I think that politics and psychotherapy are worlds apart, and largely in the different ways they approach the truth. Psychotherapy is largely the search for the truth along with understanding and validating one persons experience of it.
Politics these days seems to be largely about the manipulation of the truth, to most closely match whatever agenda is being pushed. In some ways I can live with that, it’s what I expect from politicians and a healthy news media can assist us to dive into the debate and decide who and what we want to believe. But it’s much harder to take from a public organization charged with the care and treatment of all New Zealanders.
Both of the recent reports into the ACC by the Auditor General and the Office of the Privacy Commissioner  point to “culture problems” within the ACC.  (See: “Dual investigations shows culture problems at the ACC“). In my view this starts to get us to the heart of the problems that have plagued the Sensitive Claims Unit for a number of years. I believe the culture problem that exists within the ACC’s Senior Management is an ongoing pattern of cynical manipulation of the truth for financial and political gain. And sometimes blatant self-preservation...
Click here to read the rest of this post.

http://psychotherapy.org.nz/not-cute/

24 August 2012

Privacy breach a warning for others

An article from the Nelson Mail by Laura Basham
In a chilling revelation, an inquiry into the case of ACC emailing sensitive details about more than 6000 claimants to the wrong person reveals it could have happened to any big government agency.
A spreadsheet containing details of the 6000-plus claimants - including more than 200 handled by the ACC's sensitive claims unit dealing with rape and sexual abuse victims - was emailed to Auckland woman Bronwyn Pullar after an ACC staffer mistakenly clicked on it and sent it as an attachment without noticing.
An inquiry yesterday found simple human error was to blame for the breach, which has so far claimed the scalps of a government minister, the chairman and chief executive of ACC and could yet claim further victims as the hunt continues for the person who leaked an email from Pullar support person, former National Party president Michelle Boag, to ACC Minister Judith Collins.
Former ACC minister and Nelson MP Nick Smith said today he was pleased that the reports concluded that Ms Pullar did not receive any extra entitlements or benefits as a consequence of her friendship with him or that she was known through the pipfruit industry and to former ACC director John McCliskie. The inquiries were initiated out of allegations that because Ms Pullar had been involved with the National Party, she had received entitlements, he said.
"These reports show that is not true and that both myself and the board were very clear Bronwyn Pullar should not be treated in any way differently from any other claimant," said Dr Smith.
However, he said he still regretted writing the letter attesting to Ms Pullar's health prior to her accident, that ultimately triggered his resignation from his ministerial portfolios in March.
Dr Smith also noted that the system issue that led to the accidental email of a large file of client information could happen to other government agencies, and said there needed to be a broader review of systems to ensure that did not happen.
The release of the reports concludes the investigations on the ACC issues, but Dr Smith would not be drawn on the issue of his potential return to Cabinet, saying it was up to Prime Minister John Key. "We'll just have to see how it goes."
The report released yesterday remains silent on whether ACC was justified in going to police over claims that Ms Pullar tried to use the data breach to guarantee her benefit for two years - despite four members of the independent review team listening to a tape recording of the meeting where the blackmail threat was alleged to have been made. Police later tossed out the complaint because of a lack of evidence but ACC has so far refused to apologise to Ms Pullar over the claim.
The head of the review team, former Australian privacy commissioner Malcolm Crompton, said the blackmail allegation was outside the inquiry's terms of reference.
The inquiry, commissioned by the Privacy Commissioner and ACC, was one of two reports released yesterday into the mass privacy breach. The second was by Auditor General Lyn Provost. Both reports call for a culture change at ACC, which acting chairwoman Paula Rebstock promised yesterday would occur after the privacy breach raised "profound questions about our management of private information".
Privacy Commissioner Marie Shroff said the breach threw the spotlight on the use of personal information by government agencies.
"Public sector agencies collect information from us on a very large scale, often by compulsion, in a situation where we really have no alternative but to provide it. The information is held these days in vast electronic databases. That information is the necessary lifeblood of those agencies and a major business asset for those agencies. But the bargain for us, the citizens, the clients, is we need to be able to trust those agencies to protect our information and not to misuse it or lose it."
Both reports released yesterday raise questions not just about the privacy breach, but also over the treatment received by Ms Pullar, who was a former high-flying business woman and moved in National Party circles. Mrs Provost found Ms Pullar received special treatment after she approached a former business associate, Mr McCliskie, who was on the ACC board, over her case and he set up a meeting with senior managers.
"Although meetings with such senior ACC officials are not without precedent, few claimants have that opportunity," she noted.
© 2012 Fairfax NZ News

http://www.stuff.co.nz/nelson-mail/news/7541881/Privacy-breach-a-warning-for-others

ACC privacy report may lead to wider overhaul

An article from the New Zealand Herald by Adam Bennett
All government agencies' handling of private data may be reviewed after an independent inquiry into the ACC privacy breach found it could have happened in any department.
The report by former Australian Privacy Commissioner Malcolm Crompton and accountancy firm KPMG examined what led to a spreadsheet containing details about 6748 clients being emailed to claimant and former National Party insider Bronwyn Pullar last year, and ACC's response when it learned of the breach in December.
It concluded that the breach, which was disclosed to the public, senior management and ACC Minister Judith Collins only when Ms Pullar went to the media with the information in March, was down to "a genuine human error".
However, "such an error was more likely to occur because of systemic weaknesses within ACC's culture, systems and processes".
The report also found ACC's subsequent response process could have been better "if appropriate policies, practices, escalation protocols and the right culture were in place".
It made a series of recommendations to improve privacy handling at the corporation.
Acting ACC chairwoman Paula Rebstock said the corporation would be implementing the review's recommendations in full.
Speaking to reporters, Mr Crompton said Ms Pullar had done the public "a service by making sure that we pay attention to the proper governance of personal information".
"Most organisations should be taking great note of the fact that it could have been them."
State Services Commissioner Ian Rennie said the report was "a dramatic reminder of the need for all government agencies to treat private information with the utmost care and respect".
"To this end, I am considering that state sector chief executives review their systems for handling private information. Any stocktake would initially be targeted on areas of greatest potential risk."
But Labour's ACC spokesman, Andrew Little, said he did not believe Mr Crompton's claim it was bad luck that the breach occurred at ACC rather than another department.
"There is nowhere else in the Government where there has been the apparent sloppiness in the approach to managing that information as at ACC."
Mr Little said the National Government on coming to power had painted a picture of an organisation in financial crisis that therefore needed to focus on cutting costs.
"That is at least one explanation for the more cavalier attitude towards claimants, their issues and their privacy. I don't think the Government can disown responsibility for it having got to this point."
Privacy Commissioner Marie Shroff, who commissioned yesterday's report, said it appeared ACC staff had been under pressure and "a failure in systems processes and perhaps leadership has led to them developing a somewhat cavalier attitude towards people's information and that needs to change".
Mr Little called for Ms Collins to be replaced as ACC Minister to allow the culture change required. Ms Collins dismissed that call, and Mr Little, as "silly".
A report by Auditor-General Lyn Provost into whether Ms Pullar gained any advantage in the way her claim was treated because of her connections with former board member John McCliskie, which was also released yesterday, found no evidence that was the case.
But the report did raise concerns Mr McCliskie and then-chairman John Judge failed to recognise wider allegations of illegality and fraud at the corporation brought to their attention by Ms Pullar late last year.
© 2012 APN Holdings NZ Ltd

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10829060

23 August 2012

Coalition welcomes opportunity provided by reports

A press release from the ACC Futures Coalition
The two reports on ACC commissioned by the Privacy Commissioner and the Office of the Auditor-General may highlight failures but they also provide an opportunity to rethink the direction of the scheme, according to the ACC Futures Coalition.
“We welcome these reports,” said ACC Futures Coalition spokesperson Hazel Armstrong. “They confirm that there were problems at the governance and senior levels of the corporation with regard to the management of risk and claimants’ information.”
The report of the Privacy Commissioner (conducted by KPMG) found that the release of claimants’ details to Bronwyn Pullar, which occurred in August 2011, was a genuine error but occurred because of systemic weaknesses within ACC's culture, systems and processes.
“There is much to like about the KPMG report,” said Ms. Armstrong, “for example, we are pleased to see the emphasis that the report places on organisational culture. The report emphasises the need for a balance between ‘privacy, customer service and efficient and effective management so that “firm is also seen as fair” by ACC and its external clients and stakeholders.’ The report also stresses the importance of a culture of respect for claimant privacy which will lead to the wellbeing of clients and to achieving community trust in ACC.”
“We see these points as recognition of the link between the problems with the culture around the protection of information and the wider culture of the corporation,” said Ms. Armstrong.
“When discussing the culture of corporation the report raises the challenge arising from conflicting political views on the role of ACC and the resulting fluctuations in scheme performance, stating that this has resulted in ambiguity for staff in terms of customer service and managing claimant entitlements. There is a need for multi-party agreement on the future of the scheme,” said Ms. Armstrong, “something which the ACC Futures Coalition has been calling for since its inception.”
“These reports represent an opportunity to achieve a consensus on the future direction of the scheme,” said Ms. Armstrong. “We have begun the process of developing our own manifesto for ACC and are organising a one-day seminar in late October to assist us with that process. We want to contribute to a debate about how we can restore the scheme to its original founding values and we hope that all the parties and the Minister, will join us.”
“Both of the reports also identify failings at governance level around management of risk,” said Ms. Armstrong.
http://www.scoop.co.nz/stories/PO1208/S00364/coalition-welcomes-opportunity-provided-by-reports.htm

Question to Minister

4. DAVID BENNETT (National—Hamilton East) to the Minister for ACC: What are the findings of reports released today by the Privacy Commissioner and the Auditor-General about a privacy breach and governance at ACC?



Hon JUDITH COLLINS (Minister for ACC): The independent report released by the Privacy Commissioner focused on ACC’s culture, policies, and practices around privacy and security of information. It found that these were not up to 21st century standards. The Auditor-General focused on governance of the corporation, and found that senior board members involved and management failed to recognise the systems of systemic failure around privacy and security information, and did not take the appropriate steps. I agree with all the findings.
David Bennett: What specific concerns did the independent report and the Auditor-General raise, and what is ACC doing to address these?
Hon JUDITH COLLINS: The independent report released by the Privacy Commissioner noted systemic weaknesses, including a variable culture around the importance of handling private information carefully and a lack of accountability for addressing privacy issues. ACC will undertake a significant programme of work to address concerns raised by both the independent report and the Auditor-General. A timetable for this programme of work is included in the report from the Privacy Commissioner, and I expect ACC to make the required changes as a priority.
Andrew Little: In view of the findings in today’s reports, both released at 2 p.m., that ACC board members, which her Government appointed, were too inexperienced to appreciate the gravity of Bronwyn Pullar’s complaints, and that the corporation took a cavalier attitude to protecting claimant privacy, what steps is she taking to fill the multiple board and senior management vacancies with people who understand ACC and the importance of utmost public confidence in it?
Hon JUDITH COLLINS: The question is not quite correct in one of the assumptions. I will deal with that first and then deal with the substance of the question. In fact, the board members who were named in the reports as having not appreciated the seriousness of the situation were its longest-serving board members—the chair and deputy chair. In relation to the filling of the board positions, I can tell the member that there is a very thorough process that is ongoing. Interviews are being undertaken and I am putting a great deal of thought into making sure we get the right combination of board members with the right skills, the right character, and the right experience.
David Bennett: What expectations has she set for ACC to improve public trust and confidence in how it operates?
Hon JUDITH COLLINS: Earlier this year I signed a letter of expectations and a service and purchase agreement with ACC outlining my priorities for the board. I expect the ACC board to improve public trust and confidence, improve the management and security of private information, maintain a focus on levy stability and financial sustainability, ensure early resolution of disputes, and provide high-quality service for clients. The Auditor-General noted that “this approach will lead to a more balanced and comprehensive approach to the governance and operation of ACC.”
Hon Trevor Mallard: In light of the Privacy Commissioner’s comment that the ACC culture change has to start at the top, what action has she taken to plug the leaks from her office?
Hon JUDITH COLLINS: There are no leaks from my office, as that member well knows.

http://www.scoop.co.nz/stories/PA1208/S00350/questions-and-answers-august-23.htm

ACC fiasco starts and stops with the Minister

A press release from the New Zealand Labour Party by Andrew Little
The Privacy Commissioner’s report into the ACC leaks is a litany of leadership gone wrong, Labour’s ACC spokesperson Andrew Little says.
“In slamming the culture at ACC, the Commissioner says it is ‘vital’ for a change starting at the top.
“So let’s start with Judith Collins. This whole fiasco is a direct consequence of the Government clearing out experienced board members, putting in their own, overseeing strategies aimed at cost cutting rather than treatment and rehabilitation – which a more experienced board member might have expressed caution about – and then not recognising they were facing allegations of serious problems with the Corporation’s conduct.
“It is not good enough to name and blame others. The Cabinet that Ms Collins is part of has driven the agenda on this and she must take responsibility for the fallout.
“It’s not enough for ACC to be a clip-on to a senior Minister’s other roles.
“If the Government is serious about change from the top then it should start by having a dedicated minister in the role who can work closely with the board and senior management to bring about the necessary changes.
“We will only know the government has taken the reports of both the Privacy Commissioner and the Auditor-General seriously when it appoints a minister who can win public confidence.
“It is essential, too, that the recommendations are put into effect as soon as possible, so that ACC can once again stand by its reputation as a world-class insurance agency,” said Andrew Little.
http://www.scoop.co.nz/stories/PA1208/S00340/acc-fiasco-starts-and-stops-with-the-minister.htm

Inquiry into aspects of ACC's board-level governance

A press release from the Controller and Auditor-General
In April 2012, I decided to inquire into aspects of the interaction between the Accident Compensation Corporation (ACC) and one of its claimants, Bronwyn Pullar. I wanted to know whether the ACC Board had policies and procedures for managing interaction between Board members and individual claimants who might be known to them. I wanted to be sure that a claimant could not gain any advantage by approaching a Board member.
My inquiry found no evidence that Ms Pullar's approach to one of ACC's Board members affected her claim to ACC. However, the Board had no formal policy to guide Board members on communication with individual claimants, a deficiency it is rectifying. The handling of the matter depended on the long experience in governance of ACC's Chairman and Deputy Chairman, who were the two Board members concerned.
Of greater concern was ACC's failure to recognise Ms Pullar's wider allegations of illegality and fraud as risks to the organisation. I have no view as to whether there is any justification to the allegations, because that was not the subject of my inquiry. However, a public entity should always take allegations that threaten public trust in the organisation seriously. ACC is one of New Zealand's largest public entities and an important part of public services for New Zealanders.
My inquiry team concluded that ACC management and the Board members concerned failed to appreciate the risk that those allegations presented. It seems that the Board and ACC management were so focused on the appropriate separation of governance and operational matters that they did not recognise these issues as possible symptoms of systemic failure.
The events that gave rise to my inquiry occurred when the Board was relatively new and there was extensive change in senior management. Change in ACC will continue, because it will have a new Chairperson, several new Board members, and a new chief executive in the next few months. I consider that a new Board member, even if that person is an experienced director, will take two to three years to understand key actuarial and financial aspects of ACC, as well as its culture.
I asked my Deputy, Phillippa Smith, to carry out my inquiry. Because my inquiry concerned issues of practical governance, we engaged James Ogden, an experienced company director, to advise her on those matters. I am grateful to Mr Ogden for his assistance. I also thank the ACC personnel we interviewed and Ms Pullar, for their assistance with my inquiry.

accboardlevelgovernance.pdf
http://www.scoop.co.nz/stories/PO1208/S00357/inquiry-into-aspects-of-accs-board-level-governance.htm

Damning reports show Government’s role in ACC dysfunction

A press release from the Green Party by Kevin Hague
Reports into ACC provide the most compelling evidence yet that the Government’s focus on saving a buck has caused ACC to lose sight of its role in helping injured and vulnerable New Zealanders, the Green Party said today.
Following requests from the Green Party, reviews into the Bronwyn Pullar Privacy breach and ACC board governance were conducted by the Privacy Commissioner and the Auditor General. Reports on both were released today.
“They reveal a corporation in desperate need of a culture change which the Privacy Commissioner stated must ‘start at the very top’,” Green Party ACC spokesperson Kevin Hague said.
“The reports cite the previous ACC minister’s focus on denying claimants every dollar he could as driving the culture at the corporation.
“And they show that ACC was prepared to sustain human casualties in its drive to achieve the Government’s goal.
“The current minister must now lead the top level change that’s been called for.
“The reports reveal a corporation bumbling along with archaic ideas about communication and responsibility which meant it failed both to treat claimants with decency, and to recognise enormous risks to the organisation even when they hit it in the face,” Mr Hague said.
The Auditor General expresses concern that serous ‘accusations of systemic illegality and fraud were not taken seriously by the corporation’.
And the Privacy Commissioner highlighted ‘an almost cavalier attitude towards its clients and to the protection of their private information’.
“These are two of the most damning reports on a Government entity I’ve ever read.
“It is clear that if board chairman John Judge had not already resigned, he would have been sacked today,” Mr Hague said.
The reports highlight three key issues:
  1. As a result of Nick Smith's direction to prioritise ACC's bottom line, the organisation had inadequate focus on the needs of its clients;
  2. The culture policies and systems of the organisation are a chaotic shambles that are not fit for purpose;
  3. Restoring public trust and confidence is an essential goal and will require very major change starting from the top.
“Given the seriousness of the findings, the Minster must now request that the Auditor General bring forward her review into claims management at ACC. Most of the serious claims Ms Pullar made appear not to have been considered by the board.
“What’s now needed is for visionary leadership to turn this organisation around and focus on the original principals on which it was founded.
“The Minister must ensure that future appointments to the board are up to this task,” Mr Hague said.
http://www.scoop.co.nz/stories/PA1208/S00337/damning-reports-show-governments-role-in-acc-dysfunction.htm

Dual investigations shows culture problems at the ACC

A press release from the New Zealand Association of Psychotherapists by Kyle MacDonald
Today’s dual reports from the Privacy Commisioner and the Office of the Auditor General into the privacy breaches at the ACC show deep concerns about the manner in which privacy is handled, and shows systemic weaknesses within ACC’s culture, systems and processes.
“This report will do little to reassure all those who were effected by the privacy breach and it is very clear that the ACC’s approach to privacy is still of deep concern and clear deficiencies remain,” says Kyle MacDonald of the New Zealand Association of Psychotherapists. “Along with the Auditor General’s report released today, I believe this underlines the fact that there have been, and remain, ongoing problems with the organizations culture.”
“It seems to me that despite ongoing statements by the ACC to the contrary, the blame for this massive breach of privacy and the subsequent frustrations of Ms. Pullar in trying to have her concerns heard, land squarely at the feet of the ACC and senior management. The ACC’s efforts to attack and dis-credit Ms Pullar should now also be called into question.”
The independent report commissioned by the Privacy Commissioner describes an “almost cavalier” approach to the management of private claimant information, and that “the importance of personal information and respecting individual’s personal information is not consistent and is often de-emphasised over dealing with the management of the claim/claimant."
Both reports emphasise the failures of Governance and the systemic and cultural issues that lead to the privacy breach and the way that subsequent events were handled.
http://psychotherapy.org.nz/dual-investigations-shows-culture-problems-at-the-acc/

Reports on ACC privacy, governance welcomed

A press release from the New Zealand Government by Judith Collins
ACC Minister Judith Collins today welcomed the Independent Review of ACC’s Privacy and Security of Information, and the Auditor-General’s Inquiry into aspects of ACC’s Board-level governance.
Ms Collins says ACC must deliver the high level of protection people rightly expect for their personal information and the independent report’s recommendations give clear directions for improvements.



“New Zealanders expect to be able to trust in ACC and be confident their sensitive information will be managed securely, and with care and respect.
“ACC staff have done their best, but they need leadership, tools and processes in place to support them in the important work they do. I am encouraged by the Board’s stated commitment to implementing the report’s recommendations in full.
“I have already put in place a new Service and Purchase Agreement to rebalance ACC’s priorities and set new targets to ensure ACC meets the highest standards of best practice and service for its clients.
“There is a great opportunity now for ACC to restore the public’s trust and confidence. Genuine culture change will take time, but with the right systems and processes, focussed leadership, and commitment to change, ACC can make positive progress.
“I am particularly pleased the authors of the independent review have provided a timeline for improvements in the privacy and security of information. I expect these to be met as a priority,” Ms Collins says.
Also released today, the Auditor-General’s Inquiry into aspects of ACC’s Board-level governance found senior Board members should have managed a client conflict of interest better and failed to recognise and appreciate the risks to ACC of the symptoms of systemic failure.
“The Auditor-General’s report makes it clear that neither the wider Board, nor the Chief Executive were aware of the issues,” Ms Collins says.
In addition, the Board did not have the right protocols to manage risks arising from conflicts of interest with claimants.
“The Auditor-General found the Service and Purchase Agreement the Government has put in place will lead to a more balanced and comprehensive approach to the governance and operation of ACC.
“Building on the strengths of the current four members, I am putting together a reconfigured Board that will have the right experience and the right commitment to leadership to take ACC forward,” Ms Collins says.
http://www.scoop.co.nz/stories/PA1208/S00335/reports-on-acc-privacy-governance-welcomed.htm

ACC chair on independent review of ACC privacy

A press release from ACC by Paula Rebstock
ACC and the Board want to thank the authors for the work they have done and the considered way they have presented the findings.
We will be implementing the recommendations made in full.
On behalf of the Board and ACC, I undertake that we will respond to the challenge before us.
ACC has a clear sense of purpose which is to help individuals, communities and businesses return to independence after accidents. The events over the last six months have raised profound questions about our management of information.
ACC must show customers and stakeholders that change is occurring, that we are responding quickly and that we can demonstrate that people’s personal information is being treated with the care and respect it deserves.
We need processes that help minimise errors with safeguards to provide checks and back-ups. If something does go wrong, we must have systems to respond quickly and appropriately, and just as importantly, we need to find out what went wrong so we can try to prevent it happening again.
The responsibility for this sits with the Board and Management of ACC to provide our people with the environment, tools and processes they need to manage information appropriately.
The review outlines seven broad areas for improving systems and processes with a series of detailed recommendations under each. Just as important, we need strong leadership, the right culture and unquestionable commitment to privacy – and that starts with the Board.
I would also like to acknowledge the work of the Auditor General and the Inquiry Report that was released today into aspects of ACC’s Board-level governance following the breach.
The OAG report recognises the critical importance of having clear and detailed protocols for dealing with communication between Board members and clients.
We accept the conclusions and will incorporate all the OAG recommendations to ensure our practices, training and Governance Manual underpin and support sound governance practice. This includes how the Board and management address any allegations of improper conduct.
The Board is clear about its responsibility and has undertaken to implement the measures in the Auditor General’s report.
Both the Independent Review of ACC and the Auditor General’s report will form part of a programme of work against which ACC can be measured.
We have put in place a structure to lead this work, and we will engage external specialist advice to help plan and prioritise the work ahead of us.
ACC will work closely with the Privacy Commissioner to measure and monitor progress on implementing the recommendations which include regular public reporting of results.
http://www.scoop.co.nz/stories/PO1208/S00352/acc-chair-on-independent-review-of-acc-privacy.htm

Damning report expected on ACC

An article from the Dominion Post by Phil Kitchin
An independent investigation into ACC, prompted by revelations of a mass privacy breach, is expected to condemn the corporation's culture and processes.
A report due out today is expected to bolster widespread criticism of ACC's repeated breaches of thousands of its clients' privacy since the mass breach was exposed by The Dominion Post. It is also expected to criticise ACC's leadership, privacy systems and the corporation's technology for dealing with highly sensitive information.
Fallout from the March privacy breach has included the resignations of Cabinet minister Nick Smith and ACC chief executive Ralph Stewart, and the departure from the corporation's board of chairman John Judge and directors John McCliskie and Rob Campbell.
The report is being made public on the same day that another by the Auditor-General's Office, on how ACC manages risk at board level, is tabled in Parliament.
Both investigations arose after an ACC client - later identified as Bronwyn Pullar - revealed she had been sent private details of 6500 fellow clients. The information contained names and details of hundreds of people from ACC's sensitive claims unit, including rape and incest victims.
In the ensuing fallout, The Dominion Post revealed that ACC grossly misrepresented what happened at a crucial December meeting between Ms Pullar, her supporter Michelle Boag, and two senior ACC managers.
In a report to ACC Minister Judith Collins, the corporation said Ms Pullar threatened at the meeting to go to the media and to withhold details of the mass breach unless she was given a two-year guaranteed benefit. The corporation laid a blackmail complaint with police.
But a tape recording of the meeting, made by Ms Pullar and provided to ACC, made a mockery of the blackmail allegations. It showed no such threats or demands were made, and that Ms Pullar was already on weekly ACC compensation. After police were provided with a copy of the recording, they dismissed the complaint, saying no offence had been disclosed.
Today's reports are not expected to end the scandal, as Ms Collins has taken defamation action against Labour MPs Trevor Mallard and Andrew Little for suggesting her office was involved in leaking an email identifying Ms Pullar as the whistleblower.
The privacy report has been compiled by former Australian federal privacy commissioner Malcolm Crompton and accountancy firm KPMG. Ms Collins has seen the draft and has said she agrees with it. Ms Pullar and Ms Boag would not comment because they said they did not yet know what was in the final report.
© 2012 Fairfax New Zealand Ltd

http://www.stuff.co.nz/national/politics/7530250/Damning-report-expected-on-ACC

12 June 2012

Key and Collins keep ACC bosses at arm's length

An article from the New Zealand Herald by Isaac Davison
Prime Minister John Key and ACC Minister Judith Collins have refused to back ACC's most senior executives in their dispute with claimant Bronwyn Pullar but do not want to speak more before two inquiries are completed.
Mr Key said there were "genuine questions" over statements made by Accident Compensation Corporation leaders about the organisation's police complaint against Ms Pullar. The corporation has come under new pressure after Ms Pullar released a secret recording of a meeting with ACC to TV3's 60 Minutes which appeared to show she made no threats.
The corporation last week insisted Ms Pullar had threatened to make public thousands of accidentally released client files despite the police clearing her of any offence.
Asked about the ACC's complaint to police, Mr Key said: "I can't answer those questions about whether the complaint was accurate or the basis for that complaint. They are valid questions but you need to direct those to [the ACC chairman] or the minister."
He later added: "There's some genuine questions that would need to be answered about the rationale for the statements that were made by executives at ACC."
Mr Key said he would not comment further until investigations by the Auditor-General and the Privacy Commissioner were completed.
Mrs Collins refused to discuss Ms Pullar's allegations but issued a statement saying it was a high priority to rebuild the public's trust in ACC.
"I cannot emphasise enough how seriously I view recent privacy-related issues. Privacy and information security are the biggest challenges facing ACC at present," she said. "At this stage, I am not yet satisfied ACC's privacy provisions and protocols are appropriate, or are being complied with to the level they should be."
Ms Pullar also alleged that ACC chief executive Ralph Stewart would have known that no threat was made in the meeting because he had heard the secret tape in its entirety soon after the police complaint was made. He did not reveal this to reporters when asked about the tape last week.
She argued that the complaints were "sideshows" to the organisation's mishandling of her file, serious privacy breaches, and increasingly unfair treatment of long-term beneficiaries.
The Green Party repeated calls for ACC head John Judge to stand down, saying he had overseen the mishandling of files and the programme of removing claimants from its books.
The long-running dispute between Ms Pullar and ACC led to the resignation of ACC Minister Nick Smith from the Cabinet and a legal stand-off between his successor, Mrs Collins, and Labour MPs Trevor Mallard and Andrew Little.
© 2012 APN Holdings NZ Ltd

http://www.nzherald.co.nz/politics/news/article.cfm?c_id=280&objectid=10812375

10 April 2012

Preferential treatment at ACC

An editorial from the Otago Daily Times
If it surprises even some MPs that the Accident Compensation Corporation runs a claims process for "important" people, then it is just as well an inquiry by the Auditor-general into how ACC manages conflicts of interest has been announced.
Opposition spokesman on ACC matters Andrew Little had not been aware of special VIP provisions when he spoke on National Radio about it following revelations in the Otago Daily Times last week. That this has come to light as the corporation struggles to emerge from a storm of controversy only adds to the questions surrounding it - particularly as some of that contention relates to suggestions of preferential treatment.
Arguably this is quite a separate "structural" matter, but some rehearsal of the current imbroglio is necessary - if only to distinguish what is at stake in each.
Briefly, then, former ACC minister Nick Smith was forced to resign last month when it emerged he had signed letters on ministerial letterhead that could be construed as intervening on behalf of a friend who had a long-standing claim with the corporation. That friend was Bronwyn Pullar who, anonymous at the time, leaked a list of 6700 ACC claimants to the Dominion Post newspaper on March 13, saying this had been sent to her in error and was a serious breach of confidentiality.
ACC inquired into the leaking and alleged to new ACC minister Judith Collins that the claimant and a support person had sought two years' payments for the return of the confidential list.
On March 18, the Herald on Sunday published details from a letter sent by former National Party president Michelle Boag to Ms Collins. The leaked letter revealed the claimant as Ms Pullar and Ms Boag as her support person. This leak is now the subject of an inquiry by the privacy commissioner. On March 25, the same newspaper divulged details of Ms Pullar's private insurance claim, originally put at $14 million.
Four days later, TV One's Close Up unearthed correspondence to Ms Boag relating to the private claim and referring to Ms Pullar's 28-strong group of supporters, mostly prominent National Party figures including John Key, Jenny Shipley and Wayne Mapp.
Quite apart from the questions relating to who leaked what to whom and why - some commentators are suggesting this is all about future leadership positions in the National Party - there are some pressing issues at stake here.
If the confidentiality breach involving the dispersal of the 6700 claimants to Ms Pullar was simply a careless accident by an ACC staff officer, then systems evidently need to be tightened at the corporation.
If it came to Ms Pullar by other means, then that is more worrying. It suggests malign influences at work either within ACC or among those who have access to its files; it could also mean that ACC's IT security net has been compromised.
Of most concern, however, are the apparent attempts, by Dr Smith, and arguably by Ms Boag, on Ms Pullar's behalf, to use their positions and connections to influence the actions of a state corporation. Even the appearance of having supported preferential treatment for Ms Pullar brings both the corporation and the Government into disrepute.
The ODT's revelations that ACC has a VIP claims policy is a separate issue. Ostensibly, while she was a well-connected National Party activist, Ms Pullar did not qualify for priority treatment. As set out in the corporation's 2007 "delegation manual", there exists a special "claims handling authority" for the Governor-General, members of Parliament, members of the judiciary, ACC board members and members of their respective immediate families.
But the furore around ACC at large should not distract from questions on this policy. Why should certain people have special privileges - mainly relating to privacy and security - pertaining to their claims?
Should not the security of the system be sufficient to protect the privacy of everyone, regardless of status or station in life?
Mr Little did muse on the potential for conflicts of interest for MPs and judges dealing with ACC-related matters. There may be some mileage in this but, given the context of the times, a rather more detailed explanation of the policy than ACC has given to date would be helpful. Hopefully, the Auditor-general's inquiry will shed light on such matters.
© Allied Press Ltd 2012

http://www.odt.co.nz/opinion/editorial/204697/preferential-treatment-acc

08 April 2012

Dunedin lawyer wants ACC inquiry

An article from the Otago Daily Times by John Gibb
Dunedin lawyer Peter Sara is urging ACC to "come clean" over the details of its controversial "VIP claims" handling policy but ACC says it will not comment until the Privacy Commissioner completes an inquiry in three months. Mr Sara, who has been dealing with ACC cases for more than 30 years, says he also supports the establishment of an independent inquiry into concerns over ACC's handling of long-term claimants, and over the VIP client issue.
The Privacy Commissioner and the Auditor-general have both announced inquiries after continuing public debate over the ACC board's handling of claimant and former National Party insider Bronwyn Pullar. Ms Pullar has complained to ACC over the way her own ACC claim has been dealt with, and a major breach of privacy occurred when the corporation mistakenly sent her the details of about 67,000 other claimants last year.
An Otago Daily Times story, which appeared on Monday, raised concerns that ACC's "VIP claims" handling policy delivered better protection for the privacy of powerful decision-makers, including MPs, judges, ACC board members and their respective immediate families. The corporation's delegations manual shows that the final decision on VIP claims is made by ACC managers and not by more junior staff, and ACC has confirmed it takes extra measures to protect VIP confidentiality.
Mr Sara was "unhappy" about aspects of the VIP system and said there was also an undesirable lack of transparency about the way it was operating. An independent inquiry by a judge or QC was needed to investigate long-standing concerns over the handling of long-standing ACC claims, the ACC "exit strategy" involving long-term claimants, and over the VIP arrangements. ACC's refusal to clarify the situation until the Privacy Commissioner had reported was unsatisfactory, and what was already known about the VIP arrangements suggested potential preferential treatment, he said.
The Otago Daily Times this week has also asked ACC further questions about how the VIP arrangements operate, and has sought further comment on suggestions that this approach seemed to deliver special treatment to powerful decision-makers, in conflict with New Zealand's egalitarian ethos. An ACC spokesman said it was "unable to comment further on this matter until the independent review commissioned by the Office of the Privacy Commissioner has been completed."
The review had begun on March 28 and was expected to take three months. After the review was completed, its findings would be made public, the spokesman said.
Asked whether its VIP approach amounted to preferential treatment, an ACC spokeswoman had earlier said the practice for claims "categorised as VIP on ACC's registration and claim management systems" had followed "the standard allocation and management processes applied to all claims".
"The only difference being security rights and who can make decisions on the claim," she said.
Dunedin ACC campaigner Dr Denise Powell said a fully independent inquiry by a QC or judge was needed into concerns over the handling of long-term ACC claimants, and the VIP claims system.
© Allied Press Ltd 2012

http://www.odt.co.nz/news/dunedin/204493/dunedin-lawyer-wants-acc-inquiry

05 April 2012

ACC board endorse governance inquiry

A press release from ACC
John Judge, Chairman of the ACC board says that on behalf of the board he supports the Inquiry by the office of The Auditor General into how ACC manages risk at the board level.
"The ACC board, in conjunction with the Office of the Privacy Commissioner, has already commenced a review of the recent privacy breach and a complete review of the privacy polices and procedures at ACC. The inquiry into board governance by the Auditor General adds another positive element to ensuring there is a complete review of all issues relating to privacy at ACC. The ACC board endorses and supports the Auditor General's review."
http://www.scoop.co.nz/stories/PO1204/S00069/acc-board-endorse-governance-inquiry.htm

ACC Minister Judith Collins lays job on the line

An article from the Dominion Post by Vernon Small and John Hartevelt
ACC Minister Judith Collins has promised to quit if she or her office is found to have leaked an email at the centre of a spat over an ACC claimant as the auditor-general launches an investigation into governance at the state insurer.
ACC hit the headlines after it was revealed that the details of more than 6000 clients were accidentally sent to claimant and former National Party activist Bronwyn Pullar.
Ms Collins became caught up in the controversy when an email sent to her and a staff member about Ms Pullar was leaked to the media. Ms Collins has insisted the leak did not come from her office and told Parliament yesterday she would resign if that was disproven.
"Of course I would, because I have integrity," Ms Collins said.
She would not say if she had filed court papers over a defamation suit against Labour MPs Trevor Mallard and Andrew Little and Radio New Zealand over remarks made about the issue. Asked if she could guarantee court action, Ms Collins said: "I'm guaranteeing that I'm taking a lot of advice on this matter and that as far as I'm aware, matters are proceeding."
The alleged defamation last week had been exacerbated by the behaviour of Mr Mallard, Mr Little and by Labour leader David Shearer, she said.
Mr Little, along with Green MP Kevin Hague, earlier asked Auditor-General Lyn Provost to look into aspects of ACC's governance that would not be examined by the investigations already under way by the privacy commissioner and being considered by the police.
Ms Provost said yesterday she would hold an inquiry examining aspects of ACC's governance.
"The inquiry will examine how ACC manages a range of risks at the board level of the organisation. It will also examine how any matters relating to ACC claimant Ms Pullar that came to the attention of the board or individual board members were dealt with," she said.
As well as this inquiry, Ms Provost intended to develop an audit proposal on ACC's general operations, with a focus on its case management.
Mr Little welcomed the inquiry, saying Labour hoped it would be widened to include the behaviour of ministers in the case.
"The inquiry by the auditor-general into how ACC manages conflicts of interest and relationships between board members, clients and staff is an opportunity to examine the real problems plaguing the agency," he said.
ACC Futures spokeswoman Hazel Armstrong said her organisation had been concerned for some time about the culture at the top of ACC. In the past four years an increasing number of claims had been rejected and there had been an increase in appeals against ACC's decisions, she said.
© 2012 Fairfax NZ News

http://www.stuff.co.nz/national/politics/6696973/ACC-Minister-Judith-Collins-lays-job-on-the-line

Greens say ACC investigations suit Govt's agenda

A news report from Radio New Zealand
The Green Party says its suits the Government's purposes, politically, to have several ongoing investigations in the Accident Compensation Corporation.
The Auditor-General, the Privacy Commissioner, police and the ACC board are carrying out investigations, following the release of thousands of confidential files to Bronwyn Pullar, an Auckland claimant, and other communications.
Greens co-leader Russel Norman says the Government should hold a single inquiry into the corporation to clear the air.
Dr Norman says a single inquiry would sort out governance issues at ACC, as well as look at how it handles its case management.
© 2012 Radio New Zealand

http://www.radionz.co.nz/news/political/102613/greens-say-acc-investigations-suit-govt%27s-agenda

04 April 2012

John Key wrong about ACC inquiry

A press release from the Green Party
The decision by the Auditor General to launch an inquiry into aspects of the Bronwyn Pullar saga that will not be examined by other investigations shows that there is more to the matter than just breaches of privacy says the Green Party.
“John Key said no further investigation was needed. The Auditor General’s decision shows he was wrong,” said Green Party Co-leader Dr Russel Norman.
“We asked the Auditor General to investigate this matter, and we are glad that she has decided to do so.
“The Auditor General’s decision shows that there are important matters of public interest to do with the ACC saga that are not covered by the Privacy Commissioner or police inquiries.
“It was always clear that there are matters raised by this case that are outside the scope of the other inquiries, so it is sensible the Auditor General is now looking into them.
“We are pleased the inquiry will look at the actions of the ACC board and chair which on the face of it has been questionable.
“It is critical that all the issues raised are resolved so trust in ACC can be restored.”
http://www.scoop.co.nz/stories/PA1204/S00064/john-key-wrong-about-acc-inquiry.htm

Inquiry by Auditor-General welcomed

A press release from the ACC Futures Coalition
The ACC Futures Coalition today welcomed the announcement by the Auditor-General Lyn Provost that her office will conduct an inquiry into aspects of ACC’s governance that will not be examined by other investigations by the Privacy Commissioner and possibly the Police.
“The announcement of this inquiry should be good news for ordinary claimants at ACC,” said ACC Futures spokesperson Hazel Armstrong. “We have been concerned for some time at the culture that has developed at the top of ACC over the last four years that has led to an increasing number of claims being rejected and an increase in appeals against ACC’s decisions. The legislative changes in 2010, the clearing out of the Board by the previous Minister and the relentless focus on ACC as an insurer rather than as an integral part of our social services, have all contributed to this rather toxic culture”.
“We hope that this inquiry, with its focus on governance might begin to lift the stone on this way of working,” said Ms Armstrong. “Strictly speaking these issues are outside the terms of reference but we hope that if the Auditor-General does turn up wider issues of governance that she will utilise that part of her terms of reference that allows her to report on any other matters that she considers desirable.”
“We also welcome the inquiry because it is likely to be an important step in enabling the corporation, and those it is meant to serve, to move past the recent turmoil and get on with delivering services that meet the needs of injured New Zealanders,” said Ms Armstrong. “In all the recent claims and counter claims the needs of ACC claimants and beneficiaries have been overlooked and we trust that ACC will be able move forward once the report is completed and any recommendations implemented”.
The ACC Futures Coalition consists of community groups, academics, organisations representing people who need support from ACC, health treatment providers and unions who have come together around the following aim:
To build cross-party support for retaining the status of ACC as a publicly-owned single provider committed to the ‘Woodhouse Principles’, with a view to maintaining and improving the provision of injury prevention, treatment, rehabilitation and ‘no fault’ compensation social insurance system for all New Zealanders.
http://www.scoop.co.nz/stories/BU1204/S00192/inquiry-by-auditor-general-welcomed.htm