Wednesday, 17 August 2022
Meet the JournalistsPremiumAucklandWellingtonCanterbury/South Island
CrimePoliticsHealthEducationEnvironment and ClimateNZ Herald FocusData journalismKāhu, Māori ContentPropertyWeather
Small BusinessOpinionPersonal FinanceEconomyBusiness TravelCapital Markets
Politics
Premium SportRugbyCommonwealth GamesCricketRacingNetballBoxingLeagueFootballSuper RugbyAthleticsBasketballMotorsportTennisCyclingGolfAmerican SportsHockeyUFC
NZH Local FocusThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay of Plenty TimesHawke's Bay TodayRotorua Daily PostWhanganui ChronicleStratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu Courier
Covid-19
Te Rito
Te Rito
OneRoof PropertyCommercial Property
Open JusticeVideoPodcastsTechnologyWorldOpinion
SpyTVMoviesBooksMusicCultureSideswipeCompetitions
Fashion & BeautyFood & DrinkRoyalsRelationshipsWellbeingPets & AnimalsVivaCanvasEat WellCompetitionsRestaurants & Menus
New Zealand TravelAustralia TravelInternational Travel
Our Green FutureRuralOneRoof Property
Career AdviceCorporate News
Driven MotoringPhotos
SudokuCodecrackerCrosswordsWordsearchDaily quizzes
Classifieds
KaitaiaWhangareiDargavilleAucklandThamesTaurangaHamiltonWhakataneRotoruaTokoroaTe KuitiTaumarunuiTaupoGisborneNew PlymouthNapierHastingsDannevirkeWhanganuiPalmerston NorthLevinParaparaumuMastertonWellingtonMotuekaNelsonBlenheimWestportReeftonKaikouraGreymouthHokitikaChristchurchAshburtonTimaruWanakaOamaruQueenstownDunedinGoreInvercargill
NZ HeraldThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay Of Plenty TimesRotorua Daily PostHawke's Bay TodayWhanganui ChronicleThe Stratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu CourierVivaEat WellOneRoofDriven MotoringThe CountryPhoto SalesNZ Herald InsightsWatchMeGrabOneiHeart RadioRestaurant Hub

Advertisement

Advertise with NZME.
New Zealand|Crime

America's Cup - Team NZ spy allegations: Grant Dalton says team was defrauded by scammers

30 Jun, 2020 07:52 PM4 minutes to read
Emirates Team New Zealand CEO Grant Dalton.

Emirates Team New Zealand CEO Grant Dalton.

NZ Herald

Team New Zealand boss Grant Dalton has confirmed being scammed in a fraud relating to a Hungarian bank account.

He says the money that was effectively stolen was not public money and some of it has been recouped.

Those behind the deception may never be known or be brought to justice, despite fraud police here investigating, he said.

Speaking to Newstalk ZB's Mike Hosking this morning, Dalton was responding to revelations that there is an investigation into the use of public funds for the America's Cup defence next year.

Advertisement

Advertise with NZME.

It follows Herald revelations today that public money earmarked for the America's Cup - a $3 million loan to Team NZ - has been "reclassified", and a payment made to a "Hungarian bank account through fraud".

That is according to allegations outlined in a Ministry of Business, Innovation & Environment and Auckland Council letter.

READ MORE:
• Fraud claim, 'Hungarian bank account': Team NZ, America's Cup in investigation over public money
• America's Cup - Team NZ spy allegations: Grant Dalton on confronting the mole
• Team NZ, America's Cup Events Ltd: Who's who and what do they do
• America's Cup: American Magic helmsman Dean Barker admits team has catching up to do

The confidential letter, obtained by the Herald, is dated June 22.

In it, it reveals allegations around the handling of public money, the operation of the Cup itself and worries about public safety.

It also lifts the lid on officials' concerns that the event organisers, America's Cup Events (ACE) and Team NZ, are in breach of obligations.

Related articles

New Zealand|Politics

America's Cup 'circus': Act leader slams latest fraud claims

30 Jun 08:53 PM
Business

David Higgins calls for transparency over 'hundreds of millions' to Team NZ

01 Jul 01:58 AM

The letter - written by council chief executive Stephen Town and MBIE chief executive Carolyn Tremain and sent to ACE and Team NZ - outlines "serious matters" raised by a financial investigation firm commissioned by the Crown to look into the financial management of next year's America's Cup in Auckland.

Emirates Team New Zealand AC75 America's Cup yacht pictured in September last year. Photo / ETNZ
Emirates Team New Zealand AC75 America's Cup yacht pictured in September last year. Photo / ETNZ

Asked directly today if they had misused public money, Dalton was quick to answer: "No, not at all."

Advertisement

Advertise with NZME.

"One of the informants was in charge of the accounts of the event - and that's a really important point.

"So some time ago, I approved an invoice - I approve invoices all the time, of course - to a large contractor in Europe.

Bank account number in invoice not checked

"And no, I did not check the noughts and the ones on the bank account. I approved it - it was a correct invoice, there was nothing wrong with it, it was exactly per contract - and the money was sent to Hungary.

Subscribe to Premium

"So is that fraud? Yeah, it is. It's fraud in so much that...we were basically defrauded."

Dalton said the team immediately got in touch with government officials after they realised what had happened.

"Instantly, we rang MBIE [and] told them what had happened and that it was not government money - because it wasn't - and secondly, we got straight into the fraud police who have been working carefully out of New Zealand, but into Belgium and across through Interpol - and we've recovered some of that money."

Advertisement

Advertise with NZME.

Dalton acknowledged that they may never know who was behind the scam.

"We were defrauded by scammers - we don't really know. Police don't know yet and probably will never know. But some of the money is back," he reiterated.

Asked if there was anything that might come back to bite them, Dalton said no.

"Categorically, absolutely no. I guess that's one of the disappointing things about all this, because allegations are easy to make - they're often harder to defend."

Letter raised serious concerns with use of public funds

Among the concerns and allegations raised in the MBIE-council letter:

• "ACE has used part of the Event Investment for costs that have arisen but which are not in relation to the management and delivery of the Events";

Advertisement

Advertise with NZME.

• "This includes the $3,000,000 loan to ETNZ which was subsequently reclassified and the payment that was made to the Hungarian bank account through fraud";

• "Lack of record-keeping and unwillingness to provide the information that has been requested";

• "Material relationships with third parties that are not documented and which can be terminated ... upon 30 days' notice";

• "Poor governance including suggestions that records should be retrospectively amended".

Advertisement

Advertise with NZME.

Latest from New Zealand

New Zealand

Driver charged after crash kills off-duty St John officer

17 Aug 03:15 AM
New ZealandUpdated

Live: 70 Nelson homes evacuated; weather warnings upgraded for Auckland

17 Aug 03:14 AM
New Zealand

Herald afternoon quiz: August 17

17 Aug 03:00 AM
New Zealand

Heavy rain slams the Nelson region

New Zealand|Politics

Ardern and Sharma haven't spoken since suspension

17 Aug 02:10 AM

Most Popular

Live: Adrian Orr fronts media after RBNZ hikes OCR by 50bp
Business

Live: Adrian Orr fronts media after RBNZ hikes OCR by 50bp

17 Aug 02:00 AM
'Incredibly unsettling': Police update on suitcase homicide mystery
New Zealand|Crime

'Incredibly unsettling': Police update on suitcase homicide mystery

17 Aug 01:32 AM
Premium
NZ's highest paid CEO: Fletcher boss takes home $6.58m
Business

NZ's highest paid CEO: Fletcher boss takes home $6.58m

17 Aug 01:04 AM

Advertisement

Advertise with NZME.
About NZMEHelp & SupportContact UsSubscribe to NZ HeraldHouse Rules
Manage Your Print SubscriptionNZ Herald E-EditionAdvertise with NZMEBook Your AdPrivacy Policy
Terms of UseCompetition Terms & ConditionsSubscriptions Terms & Conditions
© Copyright 2022 NZME Publishing Limited
TOP