A roading subcontractor who admitted giving bribes in exchange for being awarded road maintenance work has been sentenced to 12 months’ home detention and will make a reparation payment of $300,000 following charges laid by the Serious Fraud Office (SFO).
They’re the fourth person involved in the case to plead guilty and receive a sentence without going to trial.
The subcontractor pleaded guilty in the Auckland District Court in February to one charge of obtaining by deception of approximately $631,000 and two charges of corruptly giving gifts to an agent amounting to approximately $615,000.
They applied for permanent name suppression. A decision is due later this month.
SFO director Karen Chang says: “Our ongoing commitment to take on cases such as these is critical to ensure we maintain New Zealand’s reputation for transparency, integrity, and low levels of fraud and corruption.
“Our approach in this case demonstrates that any parties involved in corrupt activities can be subject to investigation and prosecution and ultimately held to account.
“This case also serves as a reminder that the SFO remains focused on tackling corrupt activities, particularly where there are links to public sector funding.”
The individual sentenced is one of three subcontractors charged by the SFO in relation to the scheme.
The others are Frederick Pou and Richard Motilal, alongside former Broadspectrum roading contract manager Jason Koroheke and former maintenance manager Aurelian Mihai Hossu (also known as Michael Hossu), the SFO says.
The subcontractors are alleged to have submitted invoices to Broadspectrum, both real and fake, which were authorised by Koroheke.
Once Broadspectrum paid the subcontractors, they are alleged to have used the money to provide gifts to Koroheke in the form of cash, goods or services.
Koroheke is alleged to have benefitted by more than $1 million, the SFO says.
He’s pleaded not guilty to the charges with a judge-alone trial scheduled to begin on July 1.
Pou pleaded guilty in May to corruptly giving gifts to an agent totalling $626,000 to secure contracts.
His sentencing has been scheduled for September 30.
Motilal pleaded guilty in February last year to three charges of corruptly giving gifts to an agent.
He was sentenced in August last year to nine months’ home detention and to pay $25,000 in reparation.
Hossu pleaded guilty in April, 2022, to four charges of acceptance of gifts by agent.
He was sentenced to 11 months’ home detention in June 2022.
