Manager and guard accused of swindling Auckland health board

Photo / File

A senior manager at the Auckland District Health Board and a security guard allegedly stole nearly $385,000 of taxpayers' money.

Stephen John Paterson, 44, and Vasu Munsamy, 45, have appeared in the Auckland District Court to face charges of dishonestly using documents to obtain a pecuniary advantage over a six-year period.

Paterson was the commercial services manager at the health board where he had worked for 21 years before leaving in March 2013, where Munsamy also worked as a guard for First Security.

Court documents show that Paterson alone has been charged with spending $6385 of hospital money to purchase seven iPhones for contractors at the hospital who were part of the same social club.

Police say hospital money was also used to pay the Vodafone bill of $6100.

Charges have been laid which allege that Paterson, who controlled millions of dollars in an annual budget, approved invoices for security work to a company called B & V Enterprises.

Munsamy was the sole director and shareholder of B & V Enterprises and the police allege the payments approved by Paterson were for work done by Munsamy's employer First Security.

Between $12,500 and $102,000 was allegedly paid each year between 2006 and 2012 and totalled nearly $320,000.

On top of that, Paterson and Munsamy have also been charged with claiming extra wages from First Security which cost the Auckland DHB $52,000 over three years, including billing the hospital to hire First Security guards for Paterson's daughter's 18th birthday party.

A health board spokesman declined to comment as the matter was before the court and Mike Rutherford, general manager of First Security, did not return messages.

Paterson and Munsamy have been bailed and are to appear separately in the Auckland District Court.

Thousands claimed

Who: Stephen John Paterson, commercial services manager at the Auckland District Health Board, and Vasu Munsamy, First Security guard contracted to the DHB.
What: Fraud charges allege Paterson approved invoices for security work to a company called B & V Enterprises, of which Munsamy was the sole director and shareholder. Police allege the payments were for work done by First Security.
2006: 3 invoices for $12,555
2007: 8 invoices for $36,990
2008: 5 invoices for $14,985
2009: 11 invoices for $27,332
2010: 20 invoices, $91,644
2011: 19 invoices, $102,867
2012: 8 invoices for $32,516
Claimed $52,000 of extra wages over three years
Paterson also charged with spending $6385 of hospital money on seven iPhones and $6100 on the phone bill
Total: $383,374