Three men accused of fraudulently obtaining $12m from two councils

A former council manager and two associates who have been accused of fraudulently obtaining more than $12 million from two councils have pleaded not guilty to the charges.

In a statement, the Serious Fraud Office (SFO) said it had filed charges against the three people, alleging they had deceived Auckland Council and Kāpiti Coast District Council into awarding contracts valued at more than $12 million to an engineering firm they controlled.

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 employee at Auckland Council and Kāpiti Coast District Council was working on infrastructure projects, while simultaneously running an engineering firm with the two associates.

The SFO is alleging the first defendant used their council position to get 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 accuseds' next appearance is at the Porirua District Court on 15 September, the office said.

In a statement, a spokesperson for Kāpiti Coast District Council said the charges had come about following an internal investigation the council had referred to the SFO in 2023.

"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."

The spokesperson said council staff remained focus on governance, finance, accounting and its internal controls process.