DCC still in talks over Citifleet fraud

The Dunedin City Council is still in talks with its insurer over the Citifleet fraud, months after receiving a payout worth more than $1 million from QBE.

The council's group chief financial officer, Grant McKenzie, said discussions were expected to continue for ''a couple of months''.

The news came after the council's earlier $1 million payout from its insurer, QBE, was discussed at yesterday's finance committee meeting.

Cr David Benson-Pope questioned whether the council had any further role in Citifleet fraud-related activities, following the payout and last month's announcement police would not prosecute anyone over the $1.5 million fraud.

Mr McKenzie told the meeting the council was still ''working with the insurance company to look at recovery options''.

Pressed by Cr Benson-Pope to confirm the council was not ''counted out'' of anything else that might result, Mr McKenzie replied: ''Not at all.''

Mr McKenzie told the ODT yesterday the council still had ''a number of options'' available, ranging from taking a civil case to a mediated settlement or the recovery of property.

Asked whether the council could expect to receive further money as a result, Mr McKenzie said that was ''unlikely'' given the size of QBE's earlier payout.

A QBE spokeswoman, asked about any ongoing attempts to recover money, declined to comment ''at this stage''.chris.morris@odt.co.nz

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