A Southland sporting organisation has become embroiled in an alleged poker-machine scandal involving $230,000 of public money.
A 36-year-old Invercargill man appeared in the Invercargill District Court earlier this month in connection with the case, and he and the organisation he works for were both granted interim name suppression.
The Department of Internal Affairs alleges in its summary of facts that the Lion Foundation approached the sporting organisation in 2007 with the intention of expanding its gaming-machine operations in the province.
In return, the sporting organisation could expect an increase in grants from the charitable trust.
Accepting the offer, officials in the organisation approached individuals asking them to invest in South Invercargill-based poker-machine venue the Strathern Inn.
As a result, the venue changed its charitable organisation from the Dunedin-based Southern Trust to the Lion Foundation, and grants to the sporting organisation "increased markedly".
In addition to his role at the sporting organisation, the man became increasingly involved in the operation of the venue and is alleged to have secured more than $230,000 for the organisation.
He faces five charges, including four of providing services to the organisation while being involved with the venue, and will reappear in the Invercargill District Court on November 23.
The Lion Foundation appeared in the North Shore District Court last Thursday, facing five charges of knowingly allowing a key person in relation to the venue to contravene the Gambling Act 2003.
The maximum fine in each case is $10,000.
Internal Affairs' case against the Lion Foundation has been adjourned to February 15.
Internal Affairs is responsible for regulating the gambling sector, and issues licences to charitable trusts, incorporated societies and not-for-profit companies to operate gaming machines at pubs, hotels and clubs.
Charities and societies own the gaming machines, and proceeds - less prizes - are then distributed by way of grants for authorised purposes within the community.
