www.autofile.co.nz
MAY 2019
THE TRUSTED VOICE OF THE AUTO INDUSTRY FOR MORE THAN 30 YEARS
Review of audits on compliance needed Automotive industry responds to agency’s investigation to tackle conflicts of interest across used-imports supply chain
T
he NZTA is being urged to move away from paper chases to random on-site checks to ensure entry-certification processes are properly followed. The suggestion has been put forward by VIA (the Imported Motor Vehicle Industry Association) during consultation on the agency’s operational policy for managing the integrity of usedvehicle certification inspectors and inspection organisations. The review is being carried out because the NZTA has received feedback it should change its approach to assessing conflicts of interest (COIs). It believes public confidence may be hit if entry certification is carried out by those with ownership interests in vehicles they are certifying and there are potential safety risks because of the way the system works. However, VIA’s chief executive David Vinsen says: “The real upshot of this process is that it provides the agency with an opportunity to improve its auditing of entry-
Used-imports entry certification is under NZTA scrutiny
compliance systems.” He says integrity can best be ensured by the regulator implementing a “regimen of random unannounced physical output auditing”, while it’s the NZTA’s responsibility to manage actual and perceived COIs. Vinsen says officials currently turn up at inspection locations at prearranged times to check if processes are being adhered to,
but VIA would like to see them arrive unannounced and, for example, “look at the last 10 cars that have been certified and pull them apart”. “That would involve going through the whole process and having an in-depth look at those 10 vehicles,” says Vinsen. “If the certifier says, ‘only four of those cars are still here because six have gone to dealers’, the NZTA should visit those traders to check them. If the dealer then says three have been sold, the agency should visit the owners and thoroughly check those as well. “Then it can be ensured all 10 vehicles have been properly certified with checks done properly. “That is a strong recommendation VIA has instead of just the predetermined paper chase in place at the moment.” As for the NZTA’s focus on COIs, “VIA is straight down the middle on the issue”. “Businesses should have the right to arrange themselves in an efficient way and enter contracts
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