Cyclone Gabrielle Hawke’s Bay: ‘Fraudulent’ claims slow approval process

Wairarapa MP and Minister Responsible for Cyclone Recovery in Hawke's Bay, Keiran McAnulty (left), talking about recovery in the region last month. Photo / NZME

More than 110 claims to the Hawke’s Bay Disaster Relief Trust Fund established in the wake of Cyclone Gabrielle could be fraudulent, according to the Hawke’s Bay Regional Council.

They include attempts to make claims based on unrelated cyclone damage images downloaded from the internet, and police may investigate, says Council chair Hinewai Ormsby.

The Council said in a statement on Thursday that of 5486 applications to the fund, 4002 had been approved, but 1484 had been declared ineligible - “including over 100 which are potentially fraudulent”.

All suspected fake applications, which the council says are slowing the processing of applications, will be referred to police for further investigation.

Ormsby says “a number of fraudulent applications” have included online images of damage, false addresses or over-inflated quotes.

“We take the generosity of donators seriously and understand the responsibility to ensure honesty throughout the process,” she said, adding she and mayors are pleased the fund has provided additional assistance to those most affected by the devastation caused by the February 13-14 arrival of Cyclone Gabrielle in Hawke’s Bay.

Payments distributed from the fund had topped $3 million after an additional 199 applicants were paid out from it last week.

The “current” round included individuals and community groups to cover larger costs incurred because of the flood such as cleaning, clearing, and potential rebuilding of properties impacted by Cyclone Gabrielle.

The fund was boosted this week with Red Cross granting a further $1 million to support the continuation of the fund giving to those in greatest need.

Last week the Ministry of Business Innovation and Employment (MBIE), reported that according to provisional figures, over $8m of a $30.4m of a government allocation to Hawke’s Bay for cyclone and flood business recovery was still to be distributed, unlike other areas where regional allocations were almost exhausted.

The Hawke’s Bay Chamber of Commerce was administering the region’s applications and of 1766 applications, 1491 had been approved.

MBIE says just one application, from the regions, has been referred to police for fraud investigation, but other attempts were thwarted.