Report a fraud

A subcontractor who admitted giving bribes in exchange for being awarded road maintenance work has today been sentenced to nine months’ home detention and ordered to pay $25,000 in reparation.

In February this year, Richard Motilal of Engineering and Aviation Supplies pleaded guilty in the Auckland District Court to three charges of corruptly giving gifts to an agent.

Mr Motilal is one of four subcontractors charged by the Serious Fraud Office in relation to the scheme, alongside former Broadspectrum roading contract manager Jason Koroheke.

The subcontractors are alleged to have submitted invoices to Broadspectrum, both real and fake, which were authorised by Mr Koroheke. Once Broadspectrum paid the subcontractors, they are alleged to have used this money to provide gifts to Mr Koroheke in the form of cash, goods or services. In this way, Mr Koroheke is alleged to have benefitted by more than $1 million.

Aurelian Mihai Hossu (also known as Michael Hossu), a former maintenance manager of Broadspectrum who worked with Mr Koroheke, pleaded guilty in April 2022 to four charges of acceptance of gifts by agent. He was sentenced to 11 months home detention in June last year. 

Mr Koroheke, Frederick Pou and Jeanette Pou of Coastal Roading Contractors, and one other subcontractor who has continuing name suppression, have all pleaded not guilty. A jury trial is scheduled for 1 July 2024.