Fraud case may go to High Court

The trial of three men accused of fraud amounting to over a million dollars has been delayed as the case has been referred to the High Court.Stephen James Borlase, Barrie Kenneth James George and one other man who has interim name suppression are facing Crimes Act charges of corruption and bribery of an official. The alleged offending relates to the awarding of roading contracts at Auckland Transport (AT) and Rodney District Council.

A hearing in the North Shore District Court on Thursday was postponed until August 6 pending a decision on whether the case will be heard in the High Court or the District Court. All parties agreed to the case being assessed by the High Court, due to the complexity and seriousness of the case. The application was lodged last week and a decision is expected within the month.

Mr George and the man with name suppression entered not guilty pleas. Mr Borlase did not appear at the hearing.

During the hearing the man who has interim name suppression applied to have the suppression order extended. Judge P Sinclair declined the application, however the decision has been appealed. The media is prohibited from publishing, pending a decision from the High Court.

Mr Borlase faces eight charges of corruption and four charges of obtaining a document for pecuniary advantage. Mr George faces four charges of corruption and bribery of an official. The man with name suppression faces six charges of corruption and bribery of an official.

The Serious Fraud Office (SFO) is alleging that Mr George and an associate, while in various engineering and management roles either at AT or Rodney District Council, received undisclosed payments or gratuities from Projenz director Mr Borlase. Projenz was a supplier to AT and Rodney.

The gratuities often came in the form of cash, travel, accommodation and entertainment.

The alleged offending is said to have taken place between 2005 and 2013.Mr George was employed as an engineer at Rodney from 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.

If found guilty of the Crimes Act charges of corruption and bribery of an official, the defendants could face prison terms of up to seven years.