Source: Radio New Zealand
Interim Chatham Islands council boss Bob Penter. supplied
The interim Chatham Islands council boss says any chief executive will not be using a credit card until the council’s spending oversight policies are tightened up, in the wake of a scathing report.
Bob Penter also wants all sensitive spending by the mayor and chief executive to pass through councillors on a sub-committee, rather than be signed off by the mayor, or deputy mayor.
An auditor-general report, released last week, said former chief executive Paul Eagle’s actions over a project to upgrade his own accommodation were unacceptable and misleading, after costs blew out by more than $250,000.
It found Eagle, a former Rongotai MP and Wellington mayoral candidate, had created or edited contracts and quotes for the house upgrade, effectively had sole oversight of the project, and approved most of the spending.
The authors wrote the report raised “serious integrity questions” for the council, including pointing to its processes for managing credit card spending and reimbursement, calling them “ineffective”.
When asked about excessive credit card use, Penter told RNZ he could not comment on individual employee circumstances, but said the council was taking the Auditor-General’s report “extremely seriously”.
That included more intensive scrutiny of sensitive spending, including credit card use for things like travel, accommodation or food, he said.
“At this point I can confirm there is no chief executive credit card, so we’re not using the credit card at this time, until we get the strengthening of policies that we’re putting to the council next week in place.”
Penter said he would not be using a credit card while in the interim role, because he was not a big fan of them.
He said he would make a number of proposals at next week’s council meeting, aimed at improving processes around expense monitoring, fraud, bribery, corruption, and procurement risk in light of the report.
The Auditor-General’s report pointed to some credit card spending by Eagle that was “unusually high” or lacked an explanation, including $979 on food over five days in May 2024, $580 on a digital design store in Hamilton in September 2024, $351 on the Favona Fun Run in November 2024, and $591 on Anzac groceries.
Former chief executive Paul Eagle. Supplied / Jenny Siaosi
The report also said that most of Eagle’s expense claims forms had been signed by the mayor, but there was not a date accompanying the forms.
It said the office of the auditor general was told the mayor always sought confirmation before signing expense claim forms from the deputy mayor, but it did not see evidence this had occurred.
Penter said he wanted all mayoral and chief executive sensitive expenditure to go through a council sub-committee – a performance, audit and risk subcommittee – rather than through a one-up process signed off by the mayor or deputy mayor.
He said he would bring this as a proposal to the council next week.
The Serious Fraud Office’s counter-fraud centre, a prevention arm of the office, was helping the council to improve its policies.
The Serious Fraud Office confirmed to RNZ it was “evaluating” the auditor-general’s report for whether there were sufficient grounds to open an enquiry or criminal investigation.
Penter did not answer questions about whether he considered there should be a criminal investigation into the issues raised, or whether he felt, as the interim chief executive, betrayed by Eagle’s actions.
He said he could not comment on past actions by Eagle or the council over the accommodation project, and that he was not working at the council at the time.
But he said the council was holding workshops with council staff and councillors, to make sure they understood the expectations required.
The council was feeling “very positive”, after the release of the report, he said.
“The feeling is we absolutely take the findings – the serious concerns in the OAG report – extremely seriously, but we are positive in terms of our approach to it, we are taking it in a head on way, is what I meant by positive – it’s working to now put in place and rebuild the trust and confidence by ensuring that our systems and processes are fit for purpose and appropriate to address the concerns that’s been raised.”
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.”
Eagle said that documentation and information provided to explain his actions to the inquiry also “fell short” of expected standards.
“In hindsight, I recognise I panicked when I realised documentation was incomplete and I tried to fix this. I deeply regret that those actions did not meet the standards I expect of myself and my role.
Eagle was contacted for comment.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
