The NZ Transport Agency (NZTA) is investigating allegations of bribery, corruption and fraud across the driver licensing system, RNZ can reveal.
By Sam Sherwood of RNZ
It comes as the agency is looking at body cameras for driver testing officers (DTOs).
RNZ earlier revealed 16 DTOs had been suspended with a further seven stood down following an investigation by the NZTA.
The investigation relates to abnormal test results for both passenger and heavy vehicles across the country, with about 650 drivers required to re-sit tests.
RNZ requested under the Official Information Act correspondence in relation to the investigation into the abnormal tests.
In response, NZTA director of land transport Mike Hargreaves confirmed this week that the assessment of abnormal tests sits alongside investigations into potential fraud, bribery and corruption within the driver licensing system.
Hargreaves said that last year NZTA identified that the test results of some driver testing officers were "outside expected norms". NZTA then began an investigation in October.
In July, 23 testing officers were suspended or stood down from practical driver licence testing. A further seven, who were not actively testing, were also suspended as a precautionary measure.
NZTA withheld a series of weekly progress reports in relation to allegations of driver licensing fraud, bribery and corruption.
"The reports were developed to provide governance and operational oversight of ongoing investigations into alleged bribery, corruption and fraud across multiple aspects of the driver licensing system.
"The reports contain detailed information relating to intelligence gathering activities, investigative findings and lines of enquiry, the identification and assessment of persons and companies of interest, overseas licence conversion fraud investigations, licence cancellation activity, and rectification programmes resulting from misconduct and fraud investigations."
The OIA also included a briefing to Minister of Transport Chris Bishop on June 12, updating him on NZTA's work relating to the wider investigations.
"These investigations continue to progress, with significant activity planned over the remainder of the calendar year."
The briefing said "control improvements" had been made, with early indications that they were improving the system.
It also said fraud had increased "significantly" in recent years in New Zealand and globally.
"Driven by factors such as financial pressure, post-Covid disruption, workforce changes, and greater technological opportunity."
In response, NZTA had strengthened its fraud controls and in June last year established an internal fraud taskforce.
"Current activity of this taskforce includes active investigations into potential fraud, bribery and corruption in driver licence testing; compliance reviews of course providers; and auditing of overseas driver licence conversions."
In February last year, NZTA completed an "intelligence assessment" that raised concerns of potential bribery at VTNZ's Highbrook branch.
VTNZ, supported by NZTA, investigated the allegations which resulted in the dismissal of five DTOs and the ending of practical driver licence testing at that site.
The briefing said that two phases of licence rectification had been completed for drivers tested by the five DTOs.
"In total, 631 individuals were required to sit on-road safety tests, with 497 doing so.
"The pass rate was 59.8 percent, which is significantly below the national average of 83.4 percent and indicative of an elevated safety risk."
In relation to the current investigation, the briefing said that from June 30 the investigation would move to its next phase, which had been named Operation Kea.
"This action is expected to reduce practical testing capacity and necessitate some short notice rescheduling of driver licence tests.
"Mitigation measures, such as reserved bookings, are being coordinated with VTNZ, and a retesting programme is planned for those licence holders that have potentially received their licence improperly, applying an intelligence-led risk-based analysis to those tested by the DTOs."
The briefing said the most significant impacts were expected in Auckland and for heavy vehicle driver licences.
"Some sustained pressure on the practical testing system is anticipated through the second half of 2026."
Additional controls were in the process of being implemented, including body cameras for DTOs and fraud and integrity training for agent staff.
"The timing for a full rollout of body cameras will be dependent on NZTA's approval and the outcome of Operation Kea."
The OIA also includes the risk factors that were used in the driver testing officer risk assessments.
This included particularly short test times or drive times between tests, pass rate deviations from national averages and for specific sub-groups, and tests recorded as completed well in advance of the booked test time.
"Tests recorded as completed more than one hour prior to the booked test time are considered highly unlikely to reflect normal practice and may indicate the test was not conducted in line with required procedures or service expectations."
In response to questions from RNZ, Hargreaves said NZTA undertook regular monitoring activities, proactively audited DTOs, investigated concerns when they arose and acted when issues were identified.
"This includes the recent suspension and stand down of a number of DTOs following an investigation into the conduct of DTOs sparked by abnormal test results identified by NZTA's monitoring activity, and earlier concerns with some practical testing."
NZTA has been investigating these concerns since October 2025.
"Since then, we have carried out further assurance and investigative work to determine whether similar issues existed elsewhere. The action being taken now is the result of that work. This action is to ensure the safety of road users and maintain confidence in the driver licensing system."
He said it was important to note that the investigations showed the "vast majority of driving tests have been undertaken properly".
"The action we have taken relates to specific driver testing officers who may not have conducted tests properly. Monitoring for, identifying and then acting on these sorts of issues is part of our core business as a regulator, and when we identify concerns, we will act."
NZTA was strengthening oversight and assurance of driver testing, including increased monitoring and auditing of driver testing, Hargreaves said.
"Both NZTA and VTNZ will continue to implement further improvements as opportunities are identified. NZTA are also working with the Ministry for Cities, Environment, Regions and Transport to consider potential options for further strengthening the driver licensing system, as well as reviewing and improving operational policies and processes."
Bishop told RNZ he had been briefed on the steps NZTA was taking.
"As this is an ongoing investigation, it would be inappropriate for me to comment further.
"However, I am pleased the matter is being taken seriously and is being thoroughly investigated."
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