David Shearer –
You would not have escaped claims of corruption in the news last week: payments were made to FIFA officials by countries wanting to secure the rights to host the Soccer World Cup.
The payments were variously termed as ‘facilitation payments’ and ‘development payments,’ although in reality they are widely regarded as bribes.
Meanwhile in New Zealand, it emerged that Foreign Minister Murray McCully had bought 300 sheep from a Hawkes Bay farm owned by Saudi Arabian businessman Hamood Ali Al Khalaf. He then flew the sheep on a Singapore Airlines flight to Saudi Arabia where he donated them back to the same Mr Khalaf for his farm there.
The sheep were part of a total shipment of 900, part of an $11 million payment for Mr Khalaf to set up a modern farm in Saudi Arabia.
Why did our Foreign Minister want to do such a favour for Mr Khalaf?
At first, he claimed the payment was to avoid a $30 million lawsuit from Mr Khalaf, who had lost money when we stopped allowing live exports of sheep from New Zealand.
Real Story
But with the recent release of papers (including Cabinet papers) those claims appear to be false.
The real story is that Mr Khalaf was given a ‘facilitation payment’ so that he would not obstruct the Free Trade Agreement between New Zealand and the Arab Gulf Cooperation Council Countries including Saudi Arabia.
How are these two scenarios different?
Well, they both involve ‘facilitation payments’ but the reaction to the two could not be more different.
In the case of FIFA, the people concerned are wanted for arrest by Interpol.
In the case of Murray McCully in New Zealand, Prime Minister John Key saw the deal as a smart political move, and has publicly supported him.
But it was not smart.
New Zealand has always been seen as the least corrupt country in the world by Transparency International. We are respected, trusted and relied upon as a nation free of graft.
Sadly, these actions by Mr McCully bring that good reputation into disrepute.
The deal cannot be seen for anything other than what it is and therefore Mr McCully has to go.
David Shearer is Member of Parliament elected from Mt Albert Constituency in Auckland and is Labour Party’s Spokesperson for Foreign Affairs and Consumer Affairs.
