The council's former group manager of district assets Vivek Goel was yesterday found guilty of 14 charges of corruption and bribery of an official, four charges of corrupt use of official information, and two charges of obtaining by deception, following an eight-week trial at the High Court in Christchurch.
Goel oversaw procurement for council assets and was responsible for 67% of the Westland council's spending.
By giving advice, sharing confidential information and helping to draft tenders, he abused his position within the council to ensure a number of contracts were awarded to companies he had relationships with outside of work, the SFO said today.
The director of one of these companies, Amar Singh of ANA Group Ltd, paid Goel cash bribes in exchange for being awarded a series of asset management contracts valued at almost $500,000.
As well as being found guilty on 14 charges of corruption and bribery of an official and one charge of obtaining by deception, Goel was also found guilty on nine charges of obstructing an SFO investigation by providing false or misleading information.
Other contracts targeted by Goel's offending were for a wastewater treatment plant at Franz Josef and upgrades to the Kumara and Whataroa water treatment plants.
Techno Economic Services (TES India) was selected for the multi-million dollar Franz Josef project, which did not go ahead and was subsequently subject to an inquiry by the Auditor-General.
TES (NZ) won the Kumara and Whataroa contract, which was cancelled after the SFO investigation commenced and later awarded to another company.
Ashish Sevta, also of ANA Group, was found not guilty on one charge of obtaining by deception in relation to the Kumara and Whataroa contract.
"These were critical infrastructure projects which had implications for the health and well-being of the local community," SFO director Karen Chang said.
"By exploiting procurement processes designed to ensure public funds achieve the best outcome, Mr Goel put personal gain above the well-being of the community he was employed to serve as an official. This was an egregious breach of the trust placed in him by his employer and the public."
The offending was a sustained, deliberate effort to take advantage of the procurement process that Goel himself had helped to draft for the council, she said.
"He assisted in creating tender documents, gave out confidential information and in one case took documents from a rival company's tender to use in a submission. He had close personal connections with the companies involved yet did not declare a conflict of interest at any time.
"The defendants went to great lengths to hide their offending, including communicating through personal and dummy e-mail addresses, Whats App and manipulating documents.
"Their actions were harmful to the community, the council and to other companies which invested significant resources in preparing genuine tenders while believing they were on a level playing field."
Goel and Singh will be sentenced on March 22.
