The Serious Fraud Office (SFO) announced today that it had laid more than 300 charges against Hemant Kumar Maharaj, 57, and Suresh Din, 56, both of Auckland. The SFO alleges that Mr Maharaj, who worked for the North Shore City Council, and Mr Din, used 1
The Serious Fraud Office (SFO) announced today that it had laid more than 300 charges against Hemant Kumar Maharaj, 57, and Suresh Din, 56, both of Auckland.
The SFO alleges that Mr Maharaj, who worked for the North Shore City Council, and Mr Din, used 151 invoices in a dishonest scheme to obtain over $840,000 from the council.
SFO chief executive Adam Feeley said, “This a very significant amount alleged to have been defrauded from the Council, and underlines the need for local government to have very robust audit processes to either prevent, or enable early detection of, fraud.”
Mr Feeley said investigating and prosecuting corrupt officials within the public sector who have abused their position of trust over public funds was an area of fraud investigation that the SFO had identified as priority for the SFO in its current business plan.
“While New Zealand enjoys an outstanding international reputation for being relatively corruption free, that reputation can only be maintained by good fraud prevention and a swift response to any allegations which could undermine confidence in the integrity of our public sector.”
Mr Maharaj and Mr Din are jointly charged with 73 counts of using a document with intent to defraud and 78 counts of dishonestly using a document over a period of approximately 10 years.
Mr Maharaj has also been charged with two counts of attempting to pervert the course of justice in relation to the alleged alteration and provision of a diary and the alleged creation of a receipt book.
Mr Din has also been charged with one count of using a document with intent to defraud and six counts of dishonestly using a document in relation to the alleged dishonest use of income tax returns that claimed expenditure he had not incurred.
Both men were remanded on bail, without plea, to reappear on 13 December 2010.
New Auckland Council chief executive Doug McKay said this issue has been inherited from a former council and as custodians of ratepayer’s money Auckland Council takes a firm stand against theft and fraud.
“We have in place a comprehensive fraud prevention, detection and investigation programme and have stringent controls around procurement, purchasing and payment for goods and services.
“Over the last three weeks since the formation of the new Auckland Council, we have supported and co-operated fully with the Serious Fraud Office’s investigation.
“On behalf of ratepayers we are seeking full restitution for losses and costs to ensure that this issue is resolved.
“We are sending a clear message that theft and fraud are unacceptable,” he said.
