SFO has two investigations into Christchurch rebuild
The Serious Fraud Office is running two investigations relating to the Canterbury rebuild, saying there is evidence of other insurance fraud not serious enough for it to get involved.
A unit of Fletcher Building has meanwhile defended its auditing of rebuild-related invoices.
The white-collar crime investigator has been keeping tabs on the $30 billion rebuild, which it expects will attract a certain level of offending due to the size of spending needed. Its two probes underway are "progressing well," the SFO says in a statement.
The release comes after NZ First leader Winston Peters yesterday asked Earthquake Recovery Minister Gerry Brownlee what Fletcher Building's level of involvement was in fraudulent invoicing relating to the rebuild, given its role as project manager for the rebuild.
In a separate statement today, Fletcher Building subsidiary Fletcher EQR says it has robust audit processes and had reported a small number of false invoices that had been detected to the Earthquake Commission.
"Fletcher EQR takes its responsibility to the government, taxpayer and the people of Canterbury seriously in all that it does in delivering value for money," Fletcher EQR general manager David Peterson says.
"Any implication that Fletcher Construction is involved in any invoicing irregularities is entirely false."
Last year, the Earthquake Commission chairman Michael Wintringham defended Fletcher as providing value for money, saying the repair programme has met the government-backed natural disaster insurer's criteria around cost, quality, timeliness and safety.
Fletcher manages EQC's repair programme for homes with damage of between $15,000 and $100,000.
The company was forced to defend its track record in Christchurch against labour union claims it was profiteering by cutting pay rates for painters and plasterers.
The company's shares gained 1.1 percent to $8.66 today.
(BusinessDesk)
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Comments and questions8
As the Fletcher monopoly gets fed beyond obesity the cost of roads, buildings and houses soar in NZ. And they don't last that well either, do they?
I don't suppose these paragons ever built a rotting leaker? Which is why we are feeding them more and more of the spoils. Who wins?
Its great the SFO takes on new cases which require investigating, but what about concentrating on clearing the old cases like Hanover Finance.
I have some experience of corruption in Hong Kong in 1968-74. I spoke some Cantonese.
The police were a bit corrupt. The traffic chief was caught and fled. ack to NZ. He drove a car reg. 1066.
What happens with corruption is it starts at the base. So the supervisor controls a nice contract, squeezes say $2500 a week from only one contractor on the contract. With 10 different contractors! Some of the cash goes up to his boss. You need to be generous!!!
Corruption is then within the very heart of the company. I saw it in HK. I think I can see the start of it here. I heard of one contractor who has had to pay $2500 a week to keep his contract. In Christchurch.
Well Ray - I certainly hope you went to the police / SFO with the details of that contractor so they can investigate?
Doing nothing but being a keyboard warrior only makes you become complicit in the fraud through your silence... or is this a case similar to David Shearer's Mr. Roofus Painter?
We took our fraud / corruption allegations to the Minister of Transport and the High Court, but got nowhere. The police were not interested. The legal system in NZ stinks, and this will be yet another coverup. Don't hold your breath.
I took it to the top in writing. At least six months ago. Nothing was done, I was not even contacted. Obviously, corruption is to be ignorned unless Winston Peters mentions it.
Wow. Two whole cases for all of Christchurch?! Well done. Now if we could just get a decision on Hanover in under 5 years that would be great....
Minor alteration to my comment.
I have some experience of corruption in Hong Kong in 1968-74. I spoke some Cantonese.
The police were a bit corrupt. The traffic chief was caught and fled. Back to Hastings, England. He drove a car reg. 1066.
What happens with corruption is it starts at the base. So the supervisor controls a nice contract, squeezes say $2500 a week from only one contractor on the contract. With 10 different contractors! Some of the cash goes up to his boss. You need to be generous!!!
Corruption is then within the very heart of the company. I saw it in HK. I think I can see the start of it here. I heard of one contractor who has had to pay $2500 a week to keep his contract. In Christchurch.