Guilty plea in Auckland Transport fraud case

A former employee of Auckland Transport and Rodney District Council has pleaded guilty to charges of corruption and bribery in a Serious Fraud Office (SFO) prosecution.

Barrie Kenneth James George, 69, appeared at the Auckland High Court on August 3 to enter guilty pleas in relation to his part in a case of alleged bribery and corruption by former employees of Auckland Transport and Rodney District Council.

He pleaded guilty to two representative charges totalling $103,580.54.

Mr George was charged in April last year, together with Stephen James Borlase and Murray John Noone.

Mr George had been employed as an engineer at Rodney District Council since 1974 and then as a senior manager at Rodney District Council and Auckland Transport, where he was responsible for leading the delivery of maintenance and renewal works until 2013.

Between December 2005 and June 2013, Mr George admitted to receiving undisclosed payments or gratuities while in various engineering and management roles. The gratuities often came in the form of cash, travel, accommodation and entertainment.

The charges followed an Auckland Transport internal investigation, which began in 2012 after claims of alleged impropriety.

As a result of the internal investigation Mr George and several other staff were either dismissed or resigned, and the file handed over to the SFO.

Auckland Transport chief executive David Warburton says procurement and contractual processes have been subsequently reviewed and improved.

“Mr George’s guilty plea demonstrates that the organisation’s systems are robust, however they need to be continually monitored and reviewed.”

SFO director Julie Read said the SFO welcomed Mr George’s acceptance of his part in this offending.

“The offending in this case occurred over approximately eight years,” she said. “In circumstances such as these, this conduct becomes part of the culture of an organisation, and can continue unquestioned.

“This does not excuse the offending and it is important that employees who are offered gifts, money or benefits by clients (or prospective clients) ask themselves whether their employer is aware of the offer and whether it might be an offence to accept.”

The two remaining defendants will stand trial later this year.

Mr George will reappear for sentencing on September 1.