Comment received from Martin Legge
Sunday, 18 November 2012 5:41 p.m.
In 2007, the National Party criticised the Labour Government following a damning report by the Office of the Auditor General into DIA’s regulation of the pokie industry. The boot has been on the other foot for four years, and yet do we hear calls from anyone in the Labour Party, particularly in Dunedin?
Press Release 
Auditor-General slams Internal Affairs over gaming says National Party MP
Internal Affairs Minister Rick Barker must act now to address the criticisms of his department over its failure to effectively control the operation of non-casino gaming machines, says National Party Internal Affairs spokeswoman Sandra Goudie.
The Controller and Auditor-General, Kevin Brady, today released his report Department of Internal Affairs: Effectiveness of controls on non-casino gaming machines.
The report shows the department’s policies and procedures do not comply with the Gambling Act 2003 and includes 17 recommendations for change.
“The department’s own ‘comprehensive licensing manual’ outlines policies and procedures that do not comply with the Act and shows licensing staff were issuing and renewing licenses without delegated authority.
“The report also found that the department’s audit checklist and manual were not consistent with the Act, and information was missing from the department’s risk profile rating of operators.
“This report shows a department clearly out of touch with its key role and clearly being ignored by the Minister.
“How could the Minister have let his department get into such a state where any old staff member can approve a licence?
“Its [sic] no wonder eyebrows have been raised over the department’s inability to get convictions of operators in breach of the Act.
“It is time Mr Barker gave his department some much needed ministerial direction.”
Audit Report from Kevin Brady
14 February 2007
Department of Internal Affairs: Effectiveness of controls on non-casino gaming machines.
I felt it timely to review the effectiveness of controls on non-casino gaming machines because of the large amount of money placed in the machines (estimated by the Department of Internal Affairs at more than $8,500 million annually), the potential for the machines to cause harm in the form of problem gambling, the amount of funds from the machines going to clubs and the wider community, and a relatively new legislative framework covering gambling.
The Department of Internal Affairs administers controls on non-casino gaming machines. My review focused on three main areas of controls. These were the controls on licensing of non-casino gaming machine operators and venues, on operator and venue costs, and on the distribution and application of funds to the community including through grants.
I found that the Department of Internal Affairs has extensive policies and procedures for licensing and auditing of venues and operators, and a risk-based approach to compliance. However, there were areas of its policies, procedures, and practice that did not meet all of the requirements of the Gambling Act 2003. These included its procedure for renewing licences and for auditing. I also found that its licensing staff were issuing and renewing licences without the necessary delegated authority. The Department has committed to rectifying this issue, and had largely done so at the time this report was being finalised.
While the Department of Internal Affairs has committed to comprehensively monitoring the outcomes being achieved in the non-casino gaming machine industry, it is not yet doing this in a systematic or comprehensive manner. This limits the Department’s ability to demonstrate the results of its work and refine the way it works to achieve better outcomes.
I thank staff in the Department of Internal Affairs for their assistance, responsiveness, and co-operation during the audit. I also thank people in the industry who generously gave their time and views during the audit.
The Department has been very engaged in, and supportive of, the audit process. Its commitment to implementing the audit findings to make improvements is pleasing.
K B Brady
Controller and Auditor-General
13.11.12 Martin Legge replies to Sunday Star-Times story #DIA #coverup
11.11.12 Department of Internal Affairs #pokierorts #coverup #TTCF
Posted by Elizabeth Kerr