Tag: forensic accountants

Swney Mess Bizarre

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What a pickle

 

This story gets more bizarre as the story rolls on each new day. We first are made somewhat aware in May when a high-profile Aucklander is granted name suppression on some charges brought by some public authority. Then we see the headlines of former Heart of the City CEO Alex Swney is up on 39 charges of tax evasion brought on by the IRD. Swney as a result has his contract terminated by HotC and the forensic accountants brought in to have a look. I was wondering when Council would react to the situation and hello we have this from Todd Niall of Radio NZ:

Financial scrutiny of Heart of the City

Todd Niall, Auckland Issues correspondent – todd.niall@radionz.co.nz

Updated 14 minutes ago – Todd Niall

The Auckland Council is moving to protect millions of dollar of ratepayers’ money after the head of the city’s downtown promotion agency was sacked over tax evasion charges.

Heart of the City chief executive Alex Swney was sacked last week from the agency which he founded 20 years ago. It is largely funded by ratepayers and this year received $4.2 million dollars.

Listen to more on Morning Report ( 1 min 56 sec )

Mr Swney has denied 39 charges of tax evasion. Inland Revenue alleges tax of almost $1.8 million was unpaid, and a further $1.3 million is owed in penalties and interest. Some charges involve allegedly fictitious invoices.

Firm requirements

Auckland Council chief executive Stephen Town has written a firmly-worded letter, requiring Heart of the City to confirm in writing that it has engaged forensic accountants to go through its books and to give a timeframe for that work and any other investigations.

He also wants details of the agency’s financial position and cash-flows and is seeking clear assurances about its management processes.

Mr Town said it has been told its future could be in question if it does not respond appropriately.

Auckland Council has appointed a management team to work with Heart of the City and plans to exercise its right to attend its Annual General Meeting scheduled in a fortnight.

Coincidentally, the latest quarterly installment of $1 million of ratepayers’ money was transferred to Heart of the City the day before the council was notified of Mr Swney’s dismissal.

The council’s letter to the agency underlines its dependence on council support and concludes: “Council will be reviewing this matter formally, including Council’s rights under the Business Improvement District Policy, and Partnering Agreement, and implications for arrangements going forward.

…..

Source and full article: http://www.radionz.co.nz/news/regional/256481/financial-scrutiny-of-heart-of-the-city

 

May I nudge Council to widen the case a little bit more to restore confidence in the ratepayer after this high-profile incident. Call it an insurance policy after this saga as we don’t need any more surprises as other large projects come through the pipeline.