Central Otago Councillor Faces Allegations of Invoice Alteration

The Central Otago District Council is grappling with allegations of misconduct involving newly elected councillor Dave McKenzie. Following preliminary election results on Saturday, it has come to light that McKenzie is accused of altering contractor invoices, a claim initially raised in 2018. This situation has drawn public attention, particularly after a social media post from Rachel Kerr, the widow of the council’s former property and facilities manager, Mike Kerr.

The controversy centers around an invoice from DM Property Solutions Ltd (DM), which McKenzie directed. Records reveal that in 2018, a legal review was initiated after an additional $1,000 was added to an altered invoice. According to official documents, the police and the council’s legal advisors deemed the matter civil rather than criminal, suggesting that any legal action could be more costly than the recovery amount.

On March 2019, a report to the council’s Audit and Risk Committee noted that DM’s contract was terminated after subcontractor repairs to Cromwell Hall were discovered to have been manipulated. The report indicated that DM’s owner admitted to altering the subcontractor invoice to match claims, specifically by adding $1,000.

Further examination revealed that out of 17 invoices from DM Properties, 14 were altered, resulting in overcharging the council. The total of the subcontractor invoices was $4,754.08, while the council was billed $6,464.06, an increase of $1,709.98 or approximately 35.9%.

Legal advice provided to the council in October 2018, detailed in the 2019 report, highlighted a “murky contractual position.” Anderson Lloyd associate Jenna Riddle stated that the lack of a formal contract complicated any potential claims of breach. Riddle emphasized that without clear evidence of criminal intent, pursuing the matter further would not be an efficient use of council resources.

Despite the findings, council chief executive Peter Kelly noted that following the 2019 report, no additional steps were taken. He mentioned that council procurement processes have since improved, with a 2022 audit strengthening policies to prevent miscommunication with contractors.

As for McKenzie, he has publicly acknowledged mistakes but maintains that both parties share responsibility. He affirmed his commitment to serving as a councillor despite the ongoing scrutiny.

In the wake of these revelations, Kelly announced that a thorough review of the 2018 investigation is currently underway, with results expected to be made public. The outcome of this inquiry could have significant implications for both McKenzie and the council’s reputation moving forward.