A.C.C. and the S.F.O.

ACCI have been watching with some bemusement at the media flapping their gums over the SFO investigation at ACC.

Bemusement?

Yes, because this little rort has been going on for years and has been well known in Wellington amongst the wider property management sector and has also been talked about in not so hushed whispers in Auckland, which is where I have heard about the carry on. The tip-line has been buzzing hot since Malcolm Mason – National Property Manager ACC got the DCM. We are talking tip of the iceberg stuff here, not just one skanky little building in Nelson.

On this matter there is some very interesting stuff and when you dig a little deeper (Companies office) you find out the details.
I am aware of 5 additional  players than those touched upon by the once over lightly of the New Zealand news media. They are:

Lloyd Cundy, his wife and Luke Vodanovich are also shareholders in Lace Bark Corporate Trustee Limited.

What we have here appears to be a cosy little arrangement between friends for the leasing, interiors, legal work, management, and security/access control for ACC buildings.

What is not shown is that these six  are tight friends.  Very Tight Friends.

ACC property have never tendered out any work for property projects in Wellington – Malcolm Mason’s friend Greg Hutt gets all the fit-out work.  Malcolm Mason has only ever dealt with Rohan Hill for any property leasing work. Malcolm Mason has presumably been living life on the large for putting work the way of the boys.  Certainly he has been seen around Wellington driving Greg Hutt’s Porsche.  Malcolm Mason has also enjoyed generous hospitality at Rohan Hill’s holiday house at Millbrook in Queenstown, and at every event at Westpac Stadium in Wellington.

If people with greater capabilities than this humble blogger can do a search on all properties controlled/owned by Lloyd Cundy.  Then see where ACC are tenants. SNAP!

This cosy little club has been blown apart and the questions that need to be answered include:

  • Can the property concerned be taken under  the Proceeds of Crime Act?
  • What other deals have these parties (or some) been involved in? Rohan Hill was the agent involved in the ACC lease of new premises at the Vogel Building in Wellington, do the math on that deal, 13,000m sq @ $500psm x 19% commission = $1,295,000
  • Where was the tender process on this deal?
  • How many of the jobs given to Hi-Tech in the past 10 years were tendered on a competitive basis?
  • How much of Greg Hutt’s multi-million dollar house and $2m Lake Taupo holiday home have been funded by us, the tax payer, through no bid/none-tendered contracts.  Because of the cosy club most contractors will not bother tendering because the work will always be given to Hi-Tech and Greg Hutt.

Kudos to Nick Smith (crikey, did I just say that?) who smelled a rat and ordered an enquiry into ACC property matters following on from complaints about the ACC office in Nelson.

Much, much more to come on this. It certainly looks like there has been zero prevention, no care and we can only hope that the recovery option is valid for getting back the taxpayers millions.

And to think the deaf, dumb and blind men at Transparency International think there is no corruption in New Zealand.

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  • whalewatcher

    something smells rotten in the state…
    NZ is small, and Wellington is even smaller.
    Inevitably people know people, and even is an acquaitance or friend is the best person for the job, it has to be seen to be fair.
    Labour were shockers for croneyism, and over 9 long years it festered and grew in its own mire (arguably National hasn’t had long enough yet, but give it time).
    Witness the debacle of Hawkes Bay DHB a few years ago. Ex-Plunket nurse and Health Minister Annette King’s hubbie’s boss got a $50 million community services contract and was privy to the tender process, and had the documents weeks before anyone else had a chance.
    Govt-appointed board member leaking falsified board minutes to directly to Health Minister Cunliffe, who then sacked board on strength of lies. CEO Chris Carter too close to the fire and resigned, probably with a golden handshake.
    All too close to home.
    All avoidable if due process had been done.

    Any tender process has to be above reproach – not ‘jobs for the boys’ (or in Labour’s case, jobs for the Girlz and their boy-chums)

    Justice not only has to be done, it has to be seen to be done

  • coge

    Ever wonder why Sir Robert Jones (& most other Wellington property investors) are quite delighted with Labour Governments? All the money ends up in Wellington, that’s why it was so robust during the recession. There is massive spill-over for many Wellingtonians.If Labour are not corrupt, then they are devoid of any property business nous. Probably both.

  • monty

    I cannot help thinking that lax controls and too much money dished out by Labour is the cause of these problems. I often wonder why ACC did not conduct an RFP when seeking new office accommodation in Wellington with an open and transparent process.

    Good work Whale. I wonder what the previous Minister of ACC has to say about all this?

  • robf

    It would be incredibly naive to think that we don’t have corruption. What we are exceptionally good at is hiding it and pretending it doesn’t happen. The veneer of respectability. In some countries it is so blatant and accepted that no attempt is made to hide it at all and it is expected. Wherever you have large sums of money and human greed you will have corruption. I personally believe that corruption is rampant in the lower local levels of Government. As we do not have a dedicated, effective anti corruption body. It will be business as usual for all except the most obvious rorts.

  • gaskranken

    Very good work Whale, like I have said before you have definitely got those who stride confidently down the corridors of power thinking, `If Whale gets hold of this, we’re fucked.’

    Clocking up these kind of coups is going to help you no end by the time August rolls round:)

  • wgtnwatcher

    Interesting timing as Rohan Hills business partner Mark Hourigan purchases Serepisos ferrari http://www.stuff.co.nz/business/3648816/Serepisos-sells-spare-Ferrari