A former Kāinga Ora official allegedly took more than $3 million in bribes, including credits towards building a family home, from construction bosses working on government-funded Auckland housing projects.
The Serious Fraud Office (SFO) has charged the former official, a former Tāmaki Regeneration Company (TRC) official and two construction company owners with corruption and bribery of an official.
The charges relate to government-funded contracts worth more than $26.3 million and more than $4.2 million in alleged bribe payments.
Kāinga Ora chief executive Tracey Taylor said the agency was “deeply concerned” by the allegations, which related to a former employee who had left “some time ago”, and understood it to be an isolated case.
The SFO alleged the construction company owners paid the former Kāinga Ora official more than $2.6 million through 46 payments into five different bank accounts. The owners also allegedly provided more than $507,000 in credits for the construction of a family home.
A further $1 million had allegedly been set aside for the former TRC official. However, the SFO alleges the Kāinga Ora official kept more than $900,000 of it, with the TRC official receiving $171,250 in payments and gifts.
The alleged bribes had been funnelled through two housing projects and a minor works project, awarded and delivered between March 2020 and March 2024.
The former Kāinga Ora official and the two company owners allegedly communicated extensively about the arrangement on WeChat and Gmail. Some of their messages allegedly showed project invoices being adjusted to inflate the amount owed. The adjusted invoices were then allegedly submitted to Kāinga Ora and TRC for processing.
SFO director Karen Chang said the contracts had been meant to deliver new homes to Auckland communities.
"This case goes beyond financial loss. The alleged diversion of government funds means funds don’t go where they should, potentially impacting people’s wellbeing and access to housing and services, while eroding trust in our public institutions."
The government and Auckland Council set up TRC to lead the regeneration of Tāmaki in east Auckland. Kāinga Ora supported the entity with procurement of builders and developers, as well as ongoing project management and delivery.
The SFO thanked Kāinga Ora and TRC for their help during the investigation.
The four are due to make their first court appearance on January 21, 2027.
'Deeply concerned' - Kāinga Ora
Kāinga Ora chief executive Tracey Taylor said she was "deeply concerned" by the allegations and that matters involving public procurement were taken "very seriously".
"The individual the allegations relate to is a former Kāinga Ora employee who left the organisation some time ago," she said.
"The charges concern the alleged actions of an individual, and we understand this to be an isolated case with no evidence of wrongdoing by any current Kāinga Ora employee."
Taylor said the agency had strengthened its procurement and contract management practices, with continuing improvements on oversight, checks and balances.
Housing Minister Chris Bishop has been contacted for comment.
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