Action over Citifleet by QBE?

Sue Bidrose.
Sue Bidrose.
The Dunedin City Council may have ruled out going after the buyers of former Citifleet cars, but its insurance company is not prepared to do the same just yet.

It was confirmed this week the council's insurer, QBE, had agreed to a $750,000 partial payout to cover losss incurred by the council from its alleged $1.5 million Citifleet fraud.

The council had earlier threatened to pursue car buyers and others who profited from the alleged fraud, to try to recoup ratepayers' money, only to later rule out chasing individual buyers, based on legal advice.

Council chief executive Dr Sue Bidrose, speaking on Monday, said as a result of the agreement with QBE, the insurance company would now receive any money arising from the recovery of vehicles.

Asked if QBE planned to go after individual owners of former Citifleet cars, Dr Bidrose said she did not know.

''You'd need to talk to them about that.

''But if they want to, we'll work with them in whatever way that they want us to in terms of giving them information.''

Contacted yesterday, QBE spokeswoman Val Graham told the Otago Daily Times the company was considering its options but a decision had not yet been made.

''We will have to take [legal] advice on who had the right of pursuit.''

She could not yet say when lawyers' advice would be received, or a decision made, as it was ''pretty early days''.

chris.morris@odt.co.nz

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