Serious Fraud Office considers findings of investigation into former MP Paul Eagleβs role as Chatham Islands chief executive
The Serious Fraud Office says it is considering the findings of an investigation into Paul Eagle over his time at Chatham Islands Council.
The Auditor General found the former Labour MP misled an official probe into his βexcessiveβ spending as Chatham Islands Council chief executive, by creating his own financial records.
Eagle, a former Wellington mayoral candidate and two-term Rongotai MP, resigned as CEO of the council last month, saying he is sorry for his shortcomings and he βpanickedβ when questioned during the investigation.
Now, the Serious Fraud Office (SFO) has taken notice.
βThe SFO has noted the published report and will consider the matters raised by the OAG [Office of the Auditor General],β a spokeswoman for the office said.
Local Government Minister Simon Watts said he had requested advice from officials, who he said are βclosely examining the report to determine what action or oversight may be necessaryβ.
βThis is a very serious matter, and the community deserves accountability,β he said.
βUnacceptableβ, βmisleadingβ: What the investigation found
Much of
the report centres around the spending of council money on Eagleβs council-owned residence on the Chatham Islands.
It found Eagle,
who took on the role in 2023 after an unsuccessful mayoral bid, was wrong to oversee the project to upgrade the property, because he stood to benefit from the spending.
The costs increased after Eagle took control of the project, including him purchasing premium German appliances for the kitchen, and continuing work on converting the garage to guest accommodation even after his council said no.
The projectβs budget ballooned to $460,000.
The report also probed consultant spending by Eagle, including a failure to manage a conflict of interest when his wife was proposed to be hired as a sub-contractor.
Eagle engaged with consultancy services with a supplier he had a βpre-existing connectionβ with, and was not transparent with his council about spending hundreds of thousands of dollars on consulting services.
Throughout the investigation, Eagle provided documents which had been βaltered or createdβ by him to paint an inaccurate picture of his spending, including adding another personβs signature to them, the report said.
While he initially claimed the quotes and contracts were made by others, he later changed his position and said he made the documents himself.
βRather than provide an accurate record of events, the information that the chief executive provided was misleading, specifically, it created an incorrect picture about when certain events occurred (for example, when a contract was signed) or whether they had happened at all.
βWe consider that the chief executiveβs actions were unacceptable and demonstrated exceptionally poor practice and judgmentβ.
In a letter attached to the report, Eagle said he acknowledged the serious issues identified.
βWhile I do not agree with everything in the draft report, I accept and take ownership of the concerns about my performance and apologise for any impact it might have.β
Eagle said that because he was required to start in the role earlier than anticipated, due to illness of the outgoing chief executive, he βdid not receive a formal, structured induction process covering the policies, processes, systems and documentation expected of the roleβ.
Eagle declined to comment when the
Herald visited his Wellington home on Friday.
The ex-MP altered documents that misled the Auditor General over his 'excessive' spending.
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