An HR head who defrauded her employer of more than $700,000 has been told she can keep her six-figure KiwiSaver despite attempts by the police to seize the significant asset.
Joanne Harrison – also known as Joanne Sharp – stole $726,000 from the Ministry of Transport while she was employed as the general manager of organisational development.
In February, Harrison was jailed for three years and seven months after pleading guilty to three charges of dishonestly taking or using a document.
The police, under the Criminal Proceeds Recovery Act, have made a bid to seize assets owned or controlled by Harrison or her partner – including a $530,000 property, a BMW, Rolex, Tagheuer and Breitling watches and $109,211 in a KiwiSaver fund in Harrison's name.
However, Justice Rebecca Ellis recently ruled that KiwiSaver funds are exempt.
"The court has no power to make a civil forfeiture order in relation to the KiwiSaver funds of a person who has been engaged in significant criminal activity," Ellis said, explaining that provisions of the KiwiSaver Act prevail over the Criminal Proceeds Recovery Act.
"It seems unlikely that the relationship between the two Acts was considered at the time the KSA was enacted,” she added. “It may well be that legislative amendment is required.”
UK-born Harrison was employed with the ministry for three years before her misconduct was finally uncovered – during that time, she was alleged to let go a number of employees who had voiced concerns about her behaviour.
“She was an incredibly manipulative, dishonest person who has now gone to jail for some time,” transport minister Simon Bridges said soon after Harrison’s sentencing.
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