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.
The man 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 the 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, a 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.
“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,” said SFO Director, Karen Chang.
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.
“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,” said Ms Chang.
