Tougher rules needed to combat political corruption risks – Helen Clark Foundation

photo: RNZ/Alexander Robertson

New Zealand needs tougher rules to combat the risk of political corruption, the Helen Clark Foundation says.

In a report prepared by a public policy think tank set up by former prime minister Helen Clark, author Philippa Yasbeck made 26 recommendations to strengthen the country’s anti-corruption measures.

These include penalties for those who fail to comply with the Official Information Act. Someone’s political donation There would be a tax of up to $30,000 per election cycle, mandatory reporting of all gifts to politicians, and any former politician would have to wait three years before becoming a lobbyist.

The report, released on Sunday morning, has the support of former National government attorney general Chris Finlayson KC.

“Corruption is an insidious cancer. In a democratic country like ours, it is not enough to pay lip service to the principles of transparency and take anti-corruption measures,” he said in the report’s foreword.

“New Zealand must rigorously examine these issues on a regular basis. That is why this article is so important and why it raises very serious questions about New Zealand’s current commitment to transparency.”

Yasbeck said New Zealand’s anti-corruption measures were largely governed by social norms, but laws were also necessary.

“Our political integrity and honesty has largely developed from decades of social norms. Politicians by and large know what New Zealand society expects of them. Sadly, today, we naively think that is enough.

“New Zealand needs stronger laws and regulations to improve trust and confidence in political decision-making.”

She said if changes were not made, the country’s democracy could face serious consequences.

“We’ve seen that when people lose trust in the political system, it creates space for authoritarian populist governments to come to power and sweep away all sorts of democratic norms. So if we don’t get a handle on this, we run a pretty serious risk.”

She said all political parties should review the report and support its recommendations – but corruption also posed a risk to the economy.

“A recent survey showed that two-thirds of New Zealanders believe the economy is rigged in favour of the rich and powerful. The OECD has also warned us in its economic review of New Zealand that we need to improve regulation of lobbying because if we don’t we risk our economy being distorted.”

Her research identified five areas most susceptible to corrupt practices – political lobbying, political donations and election financing, access to official information, foreign bribery and beneficial ownership of corporate entities.

“Policy changes in New Zealand are too frequent, and crises are often caused by known flaws in our laws and institutions. We suggest that simple changes made now, rather than waiting too late, could reduce New Zealand’s risk of corruption and prevent future crises,” Yasbeck said.

The report concluded that New Zealand was gradually slipping on international standards and that a “she’ll be fine” attitude could lead to a more abrupt decline.

“The absence of corruption is fundamental to New Zealand’s identity and competitive advantage. Awareness of corruption in party funding and lobbying is growing,” the report said.

“If the political system is seen as rigged, if we fail to increase trust and confidence in political decision-making, we risk seeing the rise of populist leaders ready to sweep away democratic norms. First gradually, then suddenly.”

The report noted that the Official Information Act, introduced in 1982, had played an important role in promoting transparency, but was showing “signs of obsolescence”.

At the same time, there are great risks and pressures such as overseas corruption and money laundering.

“It is questionable whether New Zealand’s current systems and processes are adequate to meet these challenges. Recent major reforms in this area have been Panama Papers revelations“”.

The report recommends New Zealand improve measures to prevent foreign bribery and increase transparency around beneficial ownership to reduce these risks.

It also noted that little is known about the extent of corruption within local government.

“Around 12% of cases currently referred to the SFO publicly involve local government. Corruption and transparency in local government is an important area of ​​future work.”