ACC board rapped by auditor-general

MAARTEN HOLL/Dominion Post

AUDITOR-GENERAL: Lyn Provost.

JUDITH COLLINS: Took over ACC portfolio after Nick Smith fell on his sword.

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BRONWYN PULLAR: Was leaked the personal details of thousands of ACC claimants.

RALPH STEWART: Resigned as ACC chief executive.

MARK TAYLOR/Fairfax NZ

NICK SMITH: Former ACC minister.

JOHN JUDGE: Former ACC board chairman.

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The auditor-general has criticised the ACC's board's handling of the Bronwyn Pullar privacy breach scandal.

Watchdog Lyn Provost says the board could have better managed a conflict of interest and failed to appreciate the risks to ACC of the ''systematic failure.''

She was asked to investigate in April after it emerged sensitive details from thousands of clients was sent to Pullar - and her name subsequently leaked to the media.

Another report from the Privacy Commission today concluded the major data breach was ''genuine human error'' compounded by ''systematic weaknesses within ACC's culture, systems and processes.''  

The Office of the Auditor General (OAG) report points out the ''critical importance'' of having clear and ''detailed protocols'' for communication between clients and the board, ACC interim chair Paula Restock said.

The board accepts the OAG recommendations, she said.

The ACC scandal rocked the Government and the state insurer. Former ACC minister Nick Smith resigned from cabinet.

A board clean-out saw the departure of chairman John Judge and three other members. Chief executive Ralph Stewart also resigned and is due to leave later this year.

In a statement current ACC minister Judith Collins said the OAG report made it clear neither the wider board nor Stewart ''were aware of the issues.''

''In addition, the board did not have the right protocols to manage risks arising from conflicts of interest with claimants."

A new service and purchase agreement with the Government will ''lead to a more balanced and comprehensive approach to the governance and operation of ACC.''

"Building on the strengths of the current four members, I am putting together a reconfigured board that will have the right experience and the right commitment to leadership to take ACC forward," Collins said.

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