The Serious Fraud Office has filed charges against a former Kāpiti council manager and two associates alleging they deceived two councils into awarding contracts valued at more than $12 million to an engineering firm they controlled.
Darren Edwards, Kāpiti Coast District Council chief executive says Kāpiti Coast District Council was advised by the Serious Fraud Office (SFO) that a former council employee has been charged with obtaining by deception.
“These charges have come about following an internal investigation that our Council referred to the SFO in 2023. The charges relate to the way the work was contracted and paid for rather than the work itself, which has been completed in full and to the expected standards.
“Council is committed to a culture that is open, transparent, and accountable and we have policies, systems and processes in place for staff to raise concerns when they come across behaviours or practices that do not align with expectations of Council employees,” says Mr Edwards.
He says “We remain focused on ensuring our internal controls, governance, finance and accounting processes are operating effectively.
“As the charges are currently progressing through the courts and are subject to name suppression, we’re unable to provide any further details relating to the charges beyond what the SFO have shared,” says Mr Edwards.
The three people, who have interim name suppression, face two charges each of obtaining by deception. They appeared in the Porirua District Court today, where they entered not guilty pleas and elected trial by jury.
The charges allege that the first defendant, while employed at Auckland Council and Kāpiti Coast District Council working on infrastructure projects, was at the same time involved in running an engineering firm with the remaining two defendants.
It is alleged that the first defendant used their council positions to obtain more than $12 million in work for the engineering firm, including manipulating the procurement process.
Of this $12 million, it is alleged the engineering firm received $1.7 million from Auckland Council between 2011 and 2015, and $10.5 million from Kāpiti Coast District Council between 2015 and 2024.
“The SFO would like to acknowledge Kāpiti Coast District Council and Auckland Council for their co-operation and assistance during its investigation. Kāpiti Coast District Council referred this matter to the SFO following its own internal audit.”
The defendants’ next scheduled appearance is at the Porirua District Court on 15 September.
There appear to be significant delays for traffic heading south toward Paraparaumu. Traffic heading north is slowed but steady moving.
