Pair face 300-plus charges after alleged council fraudMon, 22 Nov 2010 3:05p.m.
The Serious Fraud Office (SFO) has laid more than 300 fraud charges against two men relating to $840,000 allegedly fraudulently obtained from the former North Shore City Council.
Hemant Kumar Maharaj, 57, and Suresh Din, 56, both of Auckland, entered no plea to 73 counts each of using a document with intent to defraud and 78 each of dishonestly using a document when they appeared in the Auckland District Court today. They will reappear on December 13.
Maharaj also faces two counts of attempting to pervert the course of justice and Din one of using a document with intent to defraud and six counts of dishonestly using a document in relation to income tax returns.
The SFO alleges Maharaj, who worked for the council, and Din, used 151 invoices in a dishonest scheme to obtain more than $840,000 from the local authority over 10 years.
"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," SFO chief executive Adam Feeley said.
Investigating and prosecuting officials within the public sector who had abused their position of trust over public funds was a priority area for the SFO, he said.
Doug McKay, chief executive of the new Auckland Council which encompasses the old North Shore council, said a firm stand was being taken against alleged 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," he said.
"Over the last three weeks since the formation of the new Auckland Council, we have supported and co-operated fully with the SFO's investigation."
The council would seek full restitution, he said.
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