Internal Affairs Minister Brooke van Velden said she has "no confidence" in Fire and Emergency NZ's chief executive Kerry Gregory, saying he withheld information about a "seriously significant incident" for a full year.
The minister said the matter had now been referred to the Serious Fraud Office (SFO).
FENZ meanwhile said Gregory himself had not been referred to the SFO, saying it proactively referred a historical matter from before 2021 to the SFO.
Van Velden made the comments while answering questions about an inquiry into FENZ that found the poor state of the FENZ fleet was due to sustained and significant failings of leadership and the board over many years.
Asked whether she had confidence in the organisation, Van Velden said she had been made aware of a "serious breach" within FENZ in the last couple of weeks.
"It is of a nature that is so significant that I no longer have confidence in the chief executive of Fire and Emergency, or have confidence that the information that I'm receiving is correct."
She said Gregory "withheld information from me for a full year on a matter of a seriously significant incident".
"That matter is now being referred to the Serious Fraud Office."
In its own statement to 1News, A FENZ spokesperson said: "The chief executive has not been referred to the Serious Fraud Office.
"The matter referred to is historical, from prior to 2021, and relates to Fire and Emergency’s administration of the levy scheme.
"Fire and Emergency has proactively referred the matter to the SFO, and it is now with them to consider."
'External advice' said to inform the minister
Van Velden declined to elaborate further on the issue, telling reporters: "All that I can say is that within the last fortnight, I've been made aware that significant information was withheld from me by the chief executive of Fire and Emergency for a full year, even after he received external advice telling me, telling him that he needed to let me know.
"Having information of a significant nature withheld from me is not something I would expect of a senior official within the public service.
"This is a serious breach of trust."
Van Velden said the situation with the chief executive was for the board to "meet immediately to maintain or restore my confidence".
FENZ board responds to minister's comments
1News had scheduled an interview with FENZ officials about the inquiry, but this was cancelled after van Velden's comments.
Subsequent to van Velden's damning comments, a Fire and Emergency New Zealand spokesperson confirmed receiving advice from the minister about her concerns.
"Regarding the minister’s comments about confidence in the chief executive: the board can confirm that they have received a letter from the Minister expressing no confidence in the chief executive.
"This will be considered by the board," the spokesperson said. "The chief executive is currently out of the country attending the World Fire Congress and taking some long-planned leave."
The report that apparently sparked the minister's comments was released yesterday, revealing fire trucks worth more than a million dollars each sat in storage for years, were shipped overseas and back for construction — while frontline crews made do with ageing, breaking-down appliances.
Report finds FENZ fleet worse than nine years ago
It found the fleet was in a worse state than it was in 2017.
It recommended the Government "consider whether FENZ is best placed to conduct its own procurement, or if further support is required".
Another recommendation was "that the Government direct FENZ to shift its focus from generating corporate documents to efforts that will deliver tangible improvements at frontline stations".
The number of house fires have risen now that the weather is getting colder, which Fire and Emergency say is due to additional heating measures. (Source: 1News)
In response to the report, FENZ Board chair Raveen Jaduram accepted the organisation did not perform to a high enough standard in several important areas.
"The report identifies unacceptable delays and weaknesses in setting procurement requirements, contract management and governance oversight.
"Firefighters and communities are entitled to expect better. We apologise for the shortcomings and for the frustration and concerns this has caused.
"Fire and Emergency also apologises for the inaccurate and untimely information provided to the committee.
"I want to reassure the public we remain focused on keeping our communities safe."
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