Police have been called in, and the Serious Fraud Office
notified, after the Dunedin City Council this afternoon
revealed the full size of an alleged $1.5 million fraud
within its Citifleet department.
The decision was confirmed by council chief executive Dr Sue
Bidrose in a statement following the completion of a
three-month investigation by Deloitte.
Dr Bidrose said the alleged fraud now involved the sale of
152 council vehicles, and missing proceeds worth more than
$1.5 million, over more than a decade.
It appeared the fraud was possible because of ''inadequate
internal checks and balances'' within the council, she said.
As a result, ''employment processes'' involving a small
number of council staff were under way, she confirmed.
As well as referring the Deloitte's findings to police, the
report has been sent to the Serious Fraud Office and the
council's insurers, QBE, she said.
The council had planned to release Deloitte's report publicly
once it was complete, but had decided not to, for now,
following advice from police and the Crown Solicitor, Dr
''A formal complaint was laid with the police last week
following an independent investigation by Deloitte which
began in late May.
''The matter is now with the police and on their advice, and
the advice of the Crown Solicitor, we are not releasing the
Deloitte report at this stage, to ensure we do not prejudice
any police investigation.
''We have committed to keeping ratepayers and residents
informed, but my first priority has to be that the
appropriate authorities hold people accountable and we try to
recover some ratepayers' money.''
The investigation began days after Citifleet team leader
Brent Bachop died suddenly on May 21. His death has been
referred to the Coroner.
The investigation has so far cost the council $200,000.