Lianne Dalziel 2019 Donations: Investigation Begins Into Serious Fraud Office Secrecy and SFO's Director's Conduct
The SFO cleared former city mayor Dalziel of criminal wrongdoing regarding the 2019 campaign donation saga but has refused to be transparent about just what it did as part of its investigation.
Ombudsman Peter Boshier has begun investigating the decision of the Serious Fraud Office and Director Karen Chang to withhold Lianne Dalziel’s casefile.
The investigation could lift the veil of secrecy that has descended on the SFO’s own investigation and whether Dalziel or the contributors to her 2019 campaign were interviewed or required to give evidence.
Pictured: Lianne Dalziel, mayor of Christchurch (2013-2022) (Stuff), Karen Chang, Director and Chief Executive of the Serious Fraud Office (April 2022- ) (New Zealand Law Society) and Ombudsman, Peter Boshier (Newshub).
“details of persons interviewed or spoken by investigators is information that is withheld to avoid prejudice to the maintenance of law, including the prevention, investigation and detection of offences. The information you have requested is withheld under section 6(c) of the OIA.”
Karen Cooper, SFO Acting General Counsel
In 2019 Dalziel was campaigning for a third term as Christchurch’s mayor. In August that year an auction held at a Colombo Street restaurant netted donations totaling $31,620. Dalziel’s return of 10 December did not disclose the contributors’ names or their existence, supposedly in breach of Local Electoral Act 2001.
On 20 December, Dalziel amended her return.
A new page disclosed the identities of 6 contributors.
According to the Stuff news site, the SFO commenced an investigation into the non-disclosure in March 2020. By year’s end, it had closed the file, declaring it had “found no evidence of any criminal conduct during its investigation.”
Then SFO Director, Julie Read said:
“It is in the public interest that allegations of electoral funding fraud be treated seriously and given due attention,’ said then SFO Director Julie Read.
“In a representative democracy, voters must have confidence that those who make electoral donations do not unduly influence government decisions. While there was no evidence of corrupt conduct in this matter, the SFO believes further guidance is required at the local government level relating to donations made at fundraising auctions and how they are publicly disclosed.”
The SFO did not disclose whether it had interviewed Dalziel or what it had done as part of the investigation.
In July 2021, Dalziel announced her intention not to run as mayor for a fourth term.
In March 2023, The Wigram requested transparency from the SFO.
“[T]he file relating to the investigation of Lianne Dalziel over electoral donations,” it asked.
“In particular I would like to find out the rationale for the SFO's conclusion there was no evidence and see what was found. This would include any Crown Law opinions or SFO internal memos or communications with the Christchurch City Council and the local council electoral team.”
On 30 March, the SFO refused the request, and the new SFO Director Karen Chang refused to release the information.
On 8 April, The Wigram narrowed the scope of its request to three questions.
“What steps did the SFO take to investigate Lianne Dalziel and any other parties involved?”
“Were phone calls made to her or other parties?”
“Was she interviewed?”.
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