An Auckland roading subcontractor has pleaded guilty to corruption charges after giving $626,000 in gifts and bribes to secure contracts.
Frederick Pou was one of three subcontractors the Serious Fraud Office (SFO) said used bribes to be awarded road maintenance work by Broadspectrum roading contract manager Jason Koroheke.
Koroheke and former maintenance manager Aurelian Mihai Hossu (also known as Michael Hossu) were also charged over the scheme.
Hossu, pleaded guilty to four charges of acceptance of gifts by an agent in April 2022. He was ordered to pay $90,000 in reparations and sentenced to 11 months’ home detention in June 2023.
Charges against a fourth subcontractor were withdrawn.
“The latest guilty plea is another important step in this prosecution and our ongoing efforts to tackle complex fraud and corruption,” SFO director Karen Chang said.
Pou’s sentencing will be Monday September 30, 2024 at the Auckland District Court.
The subcontractors are alleged to have submitted real and false invoices to Broadspectrum, which were authorised by Koroheke.
Once the company paid the subcontractors, the SFO alleged they used the money to give Koroheke gifts “in the form of cash, goods or services”.
“In this way, Koroheke is alleged to have benefitted by more than $1 million.”
Richard Motilal, of Engineering & Aviation Supplies, pleaded guilty to three charges of corruptly giving gifts to an agent in February 2023. He was sentenced to nine months home detention in August and ordered to pay $25,000 in reparations.
A third subcontractor, whose name is suppressed, pleaded guilty to two charges giving gifts to an agent and one charge of obtaining by deception in February this year. His sentencing has been scheduled for June 2024.
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