Former Kāinga Ora official allegedly bribed with $2.6m worth of funds destined for Auckland housing project

It was meant to be a housing project to benefit the Auckland community. 

Instead, a former Kāinga Ora official, a former Tāmaki Regeneration Company (TRC) official, and two construction company owners allegedly used a government-funded project to funnel $4.3 million in bribes. 

The four have been charged by the Serious Fraud Office with corruption and bribery of an official in relation to government-funded contracts worth more than $26.3m. 

The construction company owners allegedly bribed the former Kāinga Ora official with more than $2.6m through 46 payments into five bank accounts, and more than $507,000 in credits for the construction of a family home. 

An additional $1m in bribes was allegedly allocated to the former TRC official; however, the former Kāinga Ora official allegedly retained more than $900,000 in payments, with the TRC official allegedly receiving $171,250 in payments and gifts. 

The TRC was established by the government and Auckland Council to facilitate the regeneration of Tāmaki in Auckland, with Kāinga Ora supporting the government-owned entity with procurement for builders and developers, and ongoing project management and delivery support. 

Two housing projects and a minor works project, awarded and delivered between March 2020 and March 2024, were used to allegedly funnel the bribes, according to the SFO. 

It’s alleged the former Kāinga Ora official and the two construction company owners involved in the projects communicated extensively about the arrangement using WeChat and Gmail. 

Some of the group’s communications allegedly showed project invoices were adjusted to inflate the amount due to be paid. The adjusted invoices were then allegedly submitted to Kāinga Ora and TRC for processing. 

“This case involves contracts worth millions of dollars to provide new homes in Auckland neighbourhoods, for the benefit of our communities. The people overseeing these projects are expected to act with integrity,” SFO director Karen Chang said. 

“The building of our homes should not be taken lightly. 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 four people, who have not yet been named, are due to appear in court on January 21, 2027. 

Kāinga Ora chief executive Tracey Taylor said in a statement it was “deeply concerned” by the allegations and was cooperating with the SFO’s investigation. 

“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.” 

Brianna McIlraith is a Queenstown-based reporter for Open Justice covering courts in the lower South Island. She has been a journalist since 2018 and has had a strong interest in business and financial journalism.