“This case underscores the significant consequences of placing too much trust in a senior employee and the misuse of a position of power,” SFO director Karen Chang said today.
“The actions of Korohekenot only broke the law but also diverted public funds, reducing resources available for essential services which in this case were for road maintenance.“
She added: ”We were able to uncover this wrongdoing thanks to a brave tip-off from a subcontractor, emphasising the importance of speaking up against fraud and corruption. This case is also a reminder of the need for robust internal controls and vigilance.”
The subcontractors in the scheme submitted invoices to Broadspectrum, both real and fake, which Koroheke authorised.
Simmonds described the scheme as a “money-go-round”.
Roading contractor Jason Koroheke. Photo / Supplied
At that hearing, defence counsel Jeremy Bioletti said some of the relevant road work related to a “one-in-100-year” storm which caused damage requiring rapid repairs.
“It wasn’t simply a case of Koroheke seeing to make money. Certainly, that was part of it, but another part of it was that the site that was chosen was more cost-effective.”
Koroheke was set to have a judge-alone trial but in late June pleaded guilty to three fraud charges and 14 charges of accepting gifts by an agent.