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Jet propels Bolger into headlines

Feb 18, 2005 6:17 PM

A free jaunt across America on a corporate jet to make a dinner date has former New Zealand prime minister Jim Bolger caught up in a growing US banking scandal.

The case has already seen former Riggs Bank head Joe Allbritton found guilty of money laundering charges involving Chilean dictator Augusto Pinochet. Now he's under investigation for the flights he laid on for ex-presidents George H Bush and Jimmy Carter, television personalities and Bolger.

Allbritton offered the bank's Gulfsteam V for personal use to his high flying friends, contrary to bank policy. He lent the jet to then ambassador designate Jim Bolger and his wife Joan and two sons for a round-trip flight from Washington to San Diego in July 1998.

The estimated cost of the trip at the time was nearly $NZ200,000. The trips were allegedly paid for by the bank, which is investigating Allbritton's generosity.

Bolger told One News he does not believe he was naive to accept the invitation.

"If someone invites you, you don't say look how much is this costing you...to invite me to the dinner. You accept a friend's invitation."

But the Bolgers' use of the plane contravenes Foreign Affairs guidelines on accepting gifts or trips. Rules for diplomats say any trip must be approved by the secretary of foreign affairs, but no approval request was made by Bolger.

The former prime minister acknowledges that he was given a "packet of rules" when he took up the post.

"I do know others in the embassy knew I was flying over to California," he said. "None said 'Jim check head office'....Joe Allbritton was a very powerful figure in Washington...New Zealand was pleased to have his friendship," Bolger said.

Bolger had known Allbritton for some years, dating back to his time as prime minister.

Riggs Bank has been handling the New Zealand embassy's affairs for 50 years and Allbritton, who owned 40% of the bank, prided himself on his political and diplomatic contacts.

The bank also handled accounts for former Chilean dictator Augusto Pinochet but was forced to close them after investigations by the banking regulator. The bank was also fined $US25 million over an ensuing money laundering scandal.