Third subcontractor sentenced in SFO road maintenance corruption case
A subcontractor who pleaded guilty in a Serious Fraud Office (SFO) case relating to the awarding of road maintenance contracts funded from public funds has been sentenced to 12 months' home detention in the Auckland District Court.
This is the fifth and final defendant to be sentenced, all of whom have pleaded guilty to the charges they faced, and concludes the SFO's prosecution of this case.
Frederick Pou, of Coastal Roading Contractors, pleaded guilty in May 2024 in the Auckland District Court to corruptly giving gifts to an agent. He was sentenced today for giving gifts totalling approximately $582,000 to secure contracts.
Mr Pou is one of three subcontractors charged with paying bribes in exchange for being awarded road maintenance work by former Broadspectrum roading contract manager Jason Koroheke.
Mr Koroheke, former Contract Manager at Broadspectrum, was the architect of several schemes where he accepted gifts in exchange for awarding work and submitted false invoices to obtain significant benefits for himself.
SFO Director Karen Chang says, "Mr Pou was one of several subcontractors who helped to enable Mr Koroheke's offending. The case highlights the various roles involved in a corruption case, from the 'corrupter' who masterminds the criminal scheme, to the 'enablers' who facilitate the offending."
The subcontractors submitted invoices to Broadspectrum, both real and false, which Mr Koroheke authorised. Once Broadspectrum paid the subcontractors, they used this money to provide gifts to Mr Koroheke in the form of cash, goods or services worth over $1 million.
Ms Chang says, "The case also highlights the potential consequence of placing too much trust in a senior employee without sufficient internal controls. These are critical counter fraud prevention measures that can reduce the possibility of organisations becoming a victim of fraud and corruption."
Key case details:
- Mr Koroheke pleaded guilty in July 2024 to three charges of obtaining by deception and 14 charges of acceptance of gifts by agent between January 2015 and November 2018. Mr Koroheke was sentenced to four years and five months' imprisonment on 4 December 2024 in the Auckland District Court.
- A charge of corruptly giving gifts to an agent against Jeanette Pou was withdrawn at Mr Pou's sentencing hearing
- Mr Ravening pleaded guilty in February 2024 in the Auckland District Court to one charge of obtaining by deception of approximately $631,000 and two charges of corruptly giving gifts to an agent amounting to approximately $615,000. He was sentenced in June 2024 to 12 months' home detention and made a reparation payment of $300,000.
- Mr Motilal of Engineering & Aviation Supplies pleaded guilty in February 2023 in the Auckland District Court to three charges of corruptly giving gifts to an agent. He was sentenced in August 2023 to nine months' home detention and to pay $25,000 in reparation.
- Mr Hossu pleaded guilty in April 2022 in the Auckland District Court to four charges of acceptance of gifts by an agent. He was sentenced to 11 months' home detention in June 2022 and made a reparation payment of $90,000.
About the Serious Fraud Office
The SFO is responsible for investigating and prosecuting serious or complex fraud, including bribery, and corruption in New Zealand. With a focus on maintaining integrity and trust in the financial system, the SFO has developed strategic areas of focus to ensure it has the greatest impact with the cases it takes on. SFO Strategic Areas of Focus