Financial Risk:
Very Low
Score:
89/100
Asset Disposals
Q24
75/100
How effective are controls over the disposal of assets, and is information on these disposals, and the proceeds of their sale, transparent?
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The MoD does not oversee asset disposal. That activity is conducted by the NZDF. The NZDF National Disposals Office, located within the Directorate Supply…
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The disposal process is generally managed as a tender process through the GETS and SmartProcure, apart from sensitive items, such as weapons which are…
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Revenue from disposals are shown within the Annual Reports but in aggregated form (sums for categories: land, buildings, specialist military equipment, plant and equipment,…
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Q25
100/100
Is independent and transparent scrutiny of asset disposals conducted by defence establishments, and are the reports of such scrutiny publicly available?
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The Internal Audit function within the NZDF is performed by the Directorate of Risk Assurance who report directly to the CDF [1]. In the…
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The Auditor-General is an independent body and there is no indication of undue influence from the Executive or the Military [1].
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The Auditor-General’s review is provided as a submission to the annual review of the FADTC and is available online [1, 2]. Disposals are considered…
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Secret Budgets
Q26
50/100
What percentage of defence and security expenditure in the budget year is dedicated to spending on secret items relating to national security and the intelligence services?
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There are no secret budgets, however details of individualised spending is secret. Vote Security Intelligence and Vote Communications Security and Intelligence are classified, though…
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Q27
75/100
Is the legislature (or the appropriate legislative committee or members of the legislature) given full information for the budget year on the spending of all secret items relating to national security and military intelligence?
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The Intelligence Agencies’ classified annual reports contain complete annual financial statements, which show key areas of expenditure. Under section 221 of the Intelligence and…
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Q28
100/100
Are audit reports of the annual accounts of the security sector (the military and intelligence services) subject to parliamentary debate?
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In the case of the FADTC and ISC, the Auditor-General comes before the committee and briefs the members on matters of audit compliance [1].…
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The Minister of Defence, Secretary of Defence, Chief of Defence Force, appear annually before the FADTC. Similarly, the Director-Generals of the NZSIS and GCSB…
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Q29
100/100
In law, are off-budget military expenditures permitted, and if so, are they exceptional occurrences that are well-controlled? In practice, are there any off-budget military expenditures? If so, does evidence suggest this involves illicit economic activity?
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Off-budget expenditures are not permitted by law as stipulated by the Public Finance Act 1989, Section 4 (1) [1]. Section 5 of the act…
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This indicator is scored Not Applicable because there are no off-budget expenditures etc. as noted in Q29A.
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In the course of conducting this assessment, no evidence could be found within the sources examined, interviewed, or consulted to suggest the existence of…
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Q30
75/100
Are mechanisms for accessing information from the defence sector effective?
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The Official Information Act governs access to information from the government sector, including Defence [1]. The act clearly sets out how the public can…
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This indicator is not assigned a score in the GDI. Classification of information is explained through the Government’s Protective Security Requirements [1, 2]. A…
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The Public Service Commission publishes statistics on Official Information Act requests completed by agencies biannually, including the percentage completed within the legislated time frame…
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Q31
100/100
Do national defence and security institutions have beneficial ownership of commercial businesses? If so, how transparent are details of the operations and finances of such businesses?
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Defence maintains limited ownership of commercial businesses in the form of service museums. Service museums are independent Charitable Trust entities established by Trust Deed.…
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Details of controlled interests must be disclosed in financial statements to comply with the Public Benefit Entity International Public Sector Accounting Standard 38 Disclosure…
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Military-owned Businesses
Q32
100/100
Are military-owned businesses subject to transparent independent scrutiny at a recognised international standard?
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The NZDF has a controlling interest in service museums and non-public funds established under section 58 of the Defence Act 1990. Unit and other…
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These entities are independently audited annually. In accordance with section 58(11) of the Defence Act 1990, the Auditor-General reserves the right to audit the…
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Illegal Private Enterprise
Q33
100/100
Is there evidence of unauthorised private enterprise by military or other defence ministry employees? If so, what is the government’s reaction to such enterprise?
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The Ministry and the NZDF have secondary employment policies. The MoD’s policy sets the expectation that ministry staff must seek the approval of their…
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Several NZDF individuals have been investigated over the past decade around issues of secondary employment [1]. An investigation report released in 2016 by the…
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Actual Military Spending
Q77
100/100
Is comprehensive data on actual spending on defence published during the budget year?
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The Treasury publishes monthly and annual financial statements, which contain general data and explanation on actual expenses [1, 2]. Detailed information are published in…
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Oversight of all budgetary data is comprehensive, with adequate material available for public scrutiny [1, 2, 3, 4, 5, 6, 7, 8, 9, 10,…
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Under the Public Finance Act 1989, the NZDF and MoD are required to report on its operations at the end of the financial year.…
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Budget comparisons, to include budgeted, actual spending, and forecasts, are published annually and alongside the Supplementary Estimates and Additions to Supplementary Estimates [1, 2,…
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