The Justice Ministry will face a rapid review after a former Lotto presenter accused of money laundering was kept on full pay for five years despite being suspended from work, minister Paul Goldsmith announced today.
Goldsmith said the Public Service Commission would examine the ministry's overall operations and performance following the handling of former employee Russell Harrison, who drew his salary throughout a five-year suspension until he pleaded guilty.
“Business owners across New Zealand work their way through difficult employment matters every day. New Zealanders expect the public service to show the same level of practical management," he said in a statement.
"What happened with the former Ministry of Justice employee Russell Harrison is utterly unacceptable. I am seriously concerned about how this occurred.
"It was mishandled consistently for five years."
Harrison's salary throughout the suspension amounted to hundreds of thousands of dollars. He had only started the job days earlier, Stuff reported last month.
The 56-year-old delivered six bars of gold bullion to the Comancheros in Türkiye and was among hundreds arrested in a June 2021 global FBI sting.
His name only became public earlier this year, when a suppression order was lifted at a court hearing where he admitted to money laundering.
Minister's confidence 'seriously shaken'
Goldsmith said today that his confidence in the ministry had been "seriously shaken".
"I have received an apology from the Justice Secretary, Andrew Kibblewhite. However, we only found out about this entire episode because my office asked," he said.
The review would be conducted by Debbie Francis and Steve Haszard.
In his capacity as Public Service Minister, Goldsmith has also instructed Public Service Commissioner Sir Brian Roche to write to all chief executives with guidance on managing employment cases that involve criminal proceedings.
"We need to ensure there are processes firmly in place to stop this from happening again."
Goldsmith said fair employment processes did not justify passive management.
"Paying somebody for five years for not working cannot be justified," he said.
"Where an employee is on pay and not working, I expect agencies to manage the matter actively, make timely decisions, and keep the interests of taxpayers firmly in view."
Harrison previously presented Lotto and also worked on cruise ships as an entertainer.
His arrest was part of an international operation, called Operation Trojan Shield, which culminated in coordinated raids across 16 countries, including New Zealand, resulting in more than 800 arrests, tons of drugs seized, and millions in cash uncovered.
In an earlier statement to 1News in July, Justice Ministry acting chief operating officer Andrea King said Harrison had been employed as a kaiārahi (navigator) in the Family Court, starting in June 2021 after passing a criminal record check and vetting.
"He was arrested and charged later that month and, once the ministry became aware, he was immediately suspended from his role, pending the outcome of his court case," she said.
"From that point on, Mr Harrison was not permitted to work in his role. But because he was in law innocent until proven guilty, a decision about whether to terminate his employment needed to wait until the outcome of the charge was clear."
King said the ministry terminated Harrison's employment following his guilty plea.
"We are shocked and disappointed at Mr Harrison's serious criminal offending, and his case in no way should reflect on the outstanding work that our kaiārahi do day in, day out in the Family Court."
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