Source: Radio New Zealand
A scathing Auditor General report said former council chief executive Paul Eagle’s actions over a project to upgrade his own accommodation were unacceptable and misleading. RNZ / Te Aniwa Hurihanganui
The Serious Fraud Office is evaluating a scathing Auditor General report into spending by former Chatham Islands boss Paul Eagle.
The Auditor General’s report, released last week, said former council chief executive Eagle’s actions over a project to upgrade his own accommodation were unacceptable and misleading, after costs blew out by more than $250,000.
A spokesperson for the office said it was assessing the report to determine whether there are sufficient grounds to open an enquiry or criminal investigation into the issues raised.
“At this stage, no further information can be given, including whether the SFO will open an enquiry or investigation.”
The council has referred concerns raised in a scathing Auditor General’s report to the Serious Fraud Office.
In a post on its Facebook page this week, the council said it had formally received the report and had unanimously resolved to refer it to the appropriate authority for consideration.
“We are committed to responding responsibly, transparently, and in the best interests of our community,” Mayor Greg Horler said.
The Auditor General’s report, released last week, said former council chief executive Paul Eagle’s actions over a project to upgrade his own accommodation were unacceptable, after costs blew out by $250,000.
Eagle’s handling of documents was misleading and showed exceptionally poor judgement, the report said.
It said the former Wellington MP edited or created quotes and contracts for the project, and did not make “moderate” or “conservative” funding choices.
The original budget was set at $200,000 and blew out to $460,001.65. Another $37,739.19 was also spent on rent to house Eagle and his family as the work went ahead.
“We saw little sign of any consideration of containing costs during the project. We also consider that the chief executive made spending choices that were not moderate and conservative,” the report said.
“Purchasing expensive appliances for the kitchen and carrying out extensive electrical work that suppliers working on the project widely considered to be excessive were particularly questionable.”
The report also uncovered “serious integrity questions” for the council to contend with, including its policies relating to procurement, conflicts of interest, staff expenses and fiscal reporting.
It said Eagle had sole oversight over the project, and because the cost of the upgrade could be perceived as benefiting Eagle, his family should have instigated approval by the council, mayor or deputy mayor, in line with council policy.
The report was tabled in Parliament last Thursday.
“We have not reached a view on the legality of the chief executive’s actions. In this case, we consider it sufficient to draw the council, Parliament, and the public’s attention to the matter.”
In a letter included in the report findings, Eagle, who resigned last month, apologised and said his actions did not meet the standards expected of himself and his role.
“I started as chief executive of the council in late 2023, three months earlier than planned and, because of the illness of the outgoing chief executive, did not receive a formal, structured induction process covering the policies, processes, systems and documentation expected of the role.
“I wholeheartedly accept now that I should have sought clarity and support for this process.”
Interim council chief executive Bob Penter declined to be interviewed.
Paul Eagle has been contacted for comment.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
