Southern Response approached disgruntled claimant Cam Preston's employer with unproven allegations

Friday, 16 March 2018

HNZ has confirmed Preston, pictured here in 2014 with his children, was never found to have committed wrongdoing.

A Christchurch accountant says he lost work after the chief executive of Southern Response approached his employer alleging he misused confidential Crown information.

The 2013 allegations, which sparked an internal Housing New Zealand (HNZ) inquiry into then-employee Cam Preston's actions, were found to be based on anecdotal and insufficiently robust evidence.

Former Southern Response chief executive Peter Rose, right, was named as the 'original indirect complainant' in a Housing New Zealand probe into employee Cam Preston's conduct. Preston had an unresolved earthquake claim with Southern Response at the time.

Preston's rolling contract was not renewed by HNZ beyond 2013.

An inquiry announced earlier this month will determine whether Southern Response and its security contractor breached the State Services Standards of Integrity and Conduct. The inquiry follows allegations the Crown company used private investigators to spy on Christchurch earthquake claimants.

A spokesman for Greater Christchurch Minister Megan Woods said Stuff's findings looked to be 'a matter for the independent investigation' into Southern Response.

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Now Stuff can reveal that on October 17, 2013, then-Southern Response chief executive Peter Rose contacted HNZ Canterbury Recovery Manager Paul Commons alleging many of Preston's questions submitted for a public claimants meeting were formulated because he had access to confidential information.

'He [Rose] said he had received a list of 32 questions from Cameron, many of whom, he believes are only because he has access to confidential information,' an email from Commons stated.

The allegations were followed by an internal inquiry at HNZ. The inquiry was titled 'Cameron Preston & Southern Response'.

A report into the findings of the inquiry was released on November 12, 2013.

It indicated the preliminary inquiry ended on October, 25, 2013, and found 'no evidence of wrongdoing'.

The report named Southern Response's chief executive – Rose – as the 'original indirect complainant'.

It reached two conclusions – firstly that no formal allegation had been received, only anecdotal indirect allegations.

In addition, it concluded all evidence provided was anecdotal and not 'sufficiently robust'. The report stated no further action was required until a formal complaint was received from Rose.

Preston had an unresolved earthquake claim with Southern Response, a Crown-owned claims management company, when Rose contacted HNZ.

He believed Rose's allegations 'cost me that contract' with HNZ, where he worked as management accountant and analyst.

Preston left HNZ on December 21, 2013.

'They (HNZ) got rid of me,' Preston said.

'I was on a rolling contract and they just didn't renew the contract . . . I don't have a problem with Housing NZ – that's water under the bridge.'

HNZ spokesman Glenn Conway this week confirmed 'no wrongdoing was found whatsoever regarding Mr Preston'.

He could not say why Preston's contract was not renewed because contractual arrangements with contractors were confidential.

Southern Response external relations manager Michael Henstock said the Crown-owned insurer was not aware of further complaints lodged with HNZ regarding Preston.

'The purpose of Southern Response's CEO contacting Housing New Zealand in October 2013, was to raise concerns about whether a confidential report had been leaked, and to express its concerns in relation to the confidentiality of the report – this would seem like a reasonable action to take,' Henstock said.

Rose stepped down in 2016.

A spokesman for Greater Christchurch Regeneration Minister Megan Woods this week said it was expected the terms of reference for the upcoming State Services Commission (SSC) inquiry into Southern Response's conduct would cover Stuff's findings.

'This looks like a matter for the independent investigation,' he said.

Earlier this month, the SCC announced an inquiry to determine whether the Crown-owned insurer's 'use of a security contractor' breached integrity and standards.

Southern Response hired private investigator Gavin Clark, director of Auckland-based security firm Thompson and Clark Investigations (TCIL), and contacted police about Preston in 2015 over fears Preston could cause a repeat Ashburton Winz shooting, referencing the killing of two Work and Income staff in the Canterbury town in 2014.

A 2015 meeting was attended by Southern Response staff, Christchurch police Sergeant Greg Hume and Clark, who '[had] been providing advice on security issues'.

State Services Commissioner Peter Hughes on Friday announced Doug Martin would lead the SSC investigation.

He would look into and report on the circumstances, reasons and outcome of Southern Response's engagement of external security consultants, including but not limited to TCIL.

The inquiry would use the functions and powers under the State Sector Act 1988, which grants powers of inquiry to the State Services Commissioner or their delegate.

This included the power to require the production of any records, files or other information and the power to require government employees to answer questions and enter government premises.