Former Contract Manager sentenced in road maintenance corruption case
The former Contract Manager who pleaded guilty in a Serious Fraud Office (SFO) fraud and corruption case relating to the awarding of road maintenance contracts has been sentenced to four years and five months imprisonment in the Auckland District Court.
Jason 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.
SFO Director Karen Chang says, “This case underscores the significant consequences of placing too much trust in a senior employee and the misuse of a position of power. The actions of Mr. Koroheke not only broke the law but also diverted public funds, reducing resources available for essential services which in this case were for road maintenance.”
“We were able to uncover this wrongdoing thanks to a brave tip-off from a subcontractor, emphasising the importance of speaking up against fraud and corruption. This case is also a reminder of the need for robust internal controls and vigilance.”
The SFO charged three subcontractors in relation to the schemes, including Frederick Pou, Richard Motilal, and Brian Ravening, alongside former Broadspectrum Maintenance Manager, Aurelian Mihai Hossu (also known as Michael Hossu).
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.
Mr Pou will be the last person to be sentenced in this matter, which is scheduled for Friday, 17 January 2025, in the Auckland District Court.
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 on 4 December 2024 in the Auckland District Court.
- Mr Pou of Coastal Roading Contractors pleaded guilty in May 2024 in the Auckland District Court to corruptly giving gifts to an agent totalling $626,000 to secure contracts.
- 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 last year 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.
Case history timeline.(external link)
About the SFO
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 in. These are reviewed and updated every 12-18 months. SFO Strategic Areas of Focus(external link)