A Kiwi beneficiary has travelled the world funded by the dole, spending nearly two years seeing the sights of Europe, Asia and Africa without his unemployment benefit being cut off.

In an international escapade that has left Social Development Minister Paula Bennett and Work and Income fuming, Peter Freedom, 34, has admitted seeing the world at taxpayer expense.

Mr Freedom left New Zealand for Australia on April 11, 2009, expecting his benefit would be cut off two weeks later. "I was just amazed when it didn't," he said from Dubai.

He visited Europe, the Balkans, Britain, North Africa and Asia before his benefit was finally axed late last month.

Work and Income head Mike Smith said Mr Freedom – previously known as Petrus van Druten – would be prosecuted for benefit fraud if he returned to New Zealand.

"Peter Freedom is a liar and fraudster who has abused the trust of New Zealanders. We will throw the book at him if he returns."

Ms Bennett said Mr Freedom's claim that he thought the benefit would "just stop" was pathetic.

"There is no excuse for continuing to claim welfare on an extended overseas holiday.

"New Zealanders will find the photos of Mr Freedom in front of Egypt's pyramids hard to stomach and I have to say I do too."

Mr Freedom used the nearly $28,000 – $287.12 a week, which later increased to $293.04 – to see some tourist meccas.

His favourites included the Pyramids of Giza, the Taj Mahal, the Eiffel Tower and bullfighting in Spain. "The trip was funded by the benefit," Mr Freedom said. "What started as an accident soon became an opportunity."

He sometimes slept in a car during his travels to save money. "I would always eat at the cheapest place I could find. It wasn't very much money."

Mr Freedom "didn't feel good" about spending taxpayer money but said he was happy to expose the authorities. "I guess I did rip them off but I needed something to get me on my feet again."

Before he left New Zealand Mr Freedom had been living in Hawera, Taranaki. He said he was keen to work but when a job came up outside town and he asked Work and Income to stump up some money for transport, he was refused. "I just needed a little bit of help but I never got it."

National MP Chester Borrows – who has known Mr Freedom for a decade and helped him to get on the benefit several years ago – said he was hugely disappointed.

"I'd wondered where he'd got to. There is no excuse for what he's done. He was certainly capable of being a contributor to society and not a bludger. This annoys me because this is someone who had so much potential ... this guy's ripped off the taxpayer."

Mr Smith admitted yesterday that Work and Income should have been working with Mr Freedom more actively, and said records showed it had "lost the opportunity to prevent this fraud".

Mr Freedom had lied on his application about having another name. Although a case manager became aware of this, she did not record it on his file, which could have raised the flag when he left the country.

Mr Freedom had a legal obligation to inform Work and Income before travelling overseas.

His benefit was stopped last month as part of the Government's Future Focus reforms, which require all people who have been on the unemployment benefit for a year to reapply.

Mr Freedom said he was unsure what he would do next, but had not ruled out returning to New Zealand.

"I'm not worried about the authorities. I'm pretty indifferent ... everything they could do to me they've done already."

- © Fairfax NZ News