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Investigation launched in NZ into incoming Central Bank governor's handling of budget leak

An investigation into the incoming governor of the Irish Central Bank has been launched in New Ze...
Stephen McNeice
Stephen McNeice

12.11 5 Jun 2019


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Investigation launched in NZ i...

Investigation launched in NZ into incoming Central Bank governor's handling of budget leak

Stephen McNeice
Stephen McNeice

12.11 5 Jun 2019


Share this article


An investigation into the incoming governor of the Irish Central Bank has been launched in New Zealand.

It will look into Gabriel Makhlouf's actions and public statements about the causes of 'unauthorised access' to budget material.

Mr Makhlouf, who's due to take up his new role in Ireland later this year, is currently the head of the New Zealand Treasury.

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His organisation has become embroiled in a controversy in New Zealand over the leaking of confidential budget data.

Last week, Mr Makhlouf said the Treasury alerted police that his department's systems had been "deliberately and systematically hacked".

However, it subsequently emerged that somebody had in fact exploited the main Treasury website's search tool.

The department had prepared a 'clone' version of the website which would go live on budget day - but searches on the main, live website could potentially show results from the hidden site.

As a result, specific searches could show snippets of embargoed budget details, although the full documents were not accessible.

According to the Treasury, around 2,000 search terms were placed into the search bar looking for specific information on the 2019 budget.

According to the Treasury, those responsible are not believed to have acted unlawfully.

The scandal emerged after the country's National party revealed it had confidential budget details - two days before the details were officially announced.

Investigation

An official investigation has been launched into Mr Makhlouf's handling of the situation.

It will look into his public statements about the causes of the leak; the advice he provided to his minister; his "basis for making those statements and providing that advice"; and also his decision to refer the matter to police.

State Services Commissioner Peter Hughes said: "It’s my job to get to the bottom of this and that’s what I’m going to do.

"Mr Makhlouf believes that at all times he acted in good faith. Nonetheless, he and I agree that it is in everyone’s interests that the facts are established before he leaves his role on 27 June if possible."

He added: "Mr Makhlouf is happy to cooperate fully to achieve that. I ask people to step back and let this process be completed."

Mr Makhlouf will continue working as normal while the investigation is ongoing.

He has previously acknowledged that his department's systems "were clearly susceptible to such unacceptable behaviour".

Last month, the Government here named Mr Makhlouf as the nominee to become next Central Bank governor.

He's due to take up the role and replace outgoing governor Philip Lane in September.

Main image: File photo of Gabriel Makhlouf

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