The State Services Commission has announced it will investigate whether a government agency and one of its contractors may have breached the State Services Standards of Integrity and Conduct.

State Services Commissioner Peter Hughes says the inquiry will focus on Southern Response, a government-owned company responsible for settling claims by AMI policyholders for Canterbury earthquake damage, and a contractor it hired.

The Minister for Greater Christchurch Regeneration, Megan Woods, received information relating to Southern Response Ltd and its use of a security contractor. On 16 February the Minister referred the matter to the Commissioner for consideration.

“I have decided the appropriate course of action is an inquiry,” says Mr Hughes.

“The material I have seen raises questions around compliance with standards of integrity and conduct for State servants. Those questions need to be answered.”

The inquiry will be conducted using the Commissioner’s powers under the State Sector Act 1988.

The Commissioner intends to announce who will lead the inquiry and the terms of reference by the end of next week.