Funding for Cup continues
Ministry following paper trail after claims of fraud and misspent money
The flow of millions of dollars of taxpayers’ money for the America’s Cup hasn’t been frozen, despite claims of fraud, spying and misspent public money.
The Ministry of Business, Innovation and Employment (MBIE) is looking into claims of misspending by Team NZ and counter-claims of spying on Team NZ by America’s Cup contractors.
The Government is spending $136.5m — including a $40m host fee — on hosting the 36th America’s Cup, but Economic Development Minister Phil Twyford said the pot had not been frozen. “We haven’t considered that yet,” he told reporters. “I’m happy to get advice from MBIE on that. At the moment, their priority is to find out exactly what’s going on so we can get back to organising the America’s Cup over summer.”
He conceded there could be “theoretically” tens of millions of taxpayer dollars being spent while an active review was conducted into whether public money had been misused.
“Allegations have been made. There’s a dispute between the parties. MBIE’S job is to get to the bottom of it and work out what the truth is, and then we’ll take action,” Twyford said.
Auckland Council has also committed $113 million to the event.
Team NZ and America’s Cup organisers are at the centre of an inquiry commissioned by the Crown over the spending of public money, including allegations of a “reclassified” $3 million loan and claims of fraud involving a Hungarian bank account.
A June 22 letter from MBIE and the Auckland Council, obtained by the Herald, outlines allegations around the handling of public money, worries about public safety, and concerns that the event organisers, America’s Cup Events (ACE) Ltd and Team NZ, are in breach of obligations.
Team NZ has denied any impropriety and said no public money had been misused.
“Emirates Team NZ and ACE categorically deny any wrongdoing and consider that they have already addressed the concerns of MBIE and [Auckland] Council, and their adviser Beattie Varley,” Team NZ said.
Team NZ confirmed the organisation had been defrauded by scammers and had sent money to Hungary.
Police have confirmed they are investigating with the help of officers based in Europe and Hungarian authorities. — NZ Herald