Super Fund backs stake in contractor

The New Zealand Superannuation Fund has defended its stake in a roading contractor which is alleged to have provided $250,000 of travel to a former Auckland Transport manager convicted of corruption charges.

The Super Fund said it has a 9.21 per cent stake in Hiway Group through private equity firm Direct Capital, which manages some investments on its behalf.

The taxpayer-funded investment body said it was confident there had been no improper behaviour or improper use of public funds by Hiway since the Super Fund first invested in the company in 2011.

Two local politicians believe the stake in Hiway is inappropriate as the contractor allegedly provided 19 holidays between 2007 and 2012 to a public official convicted of taking bribes from another roading firm.

Hiway Group has not responded to questions from the Herald about the travel costs, which came to light during a bribery and corruption trial in the High Court at Auckland.

Witnesses in court said Hiway Stabilizers, one of two main operating companies for Hiway Group, provided AT manager Barrie George with $250,000 worth of travel.

The Serious Fraud Office decided not to investigate Hiway in its probe of bribery and corruption at the former Rodney District Council and Auckland Transport’s road maintenance division.

Last September, George was sentenced to 10 months’ home detention after pleading guilty to accepting $103,580 in cash, travel, accommodation and entertainment from roading contractor Projenz.

George’s boss Murray Noone and Projenz managing director Stephen Borlase were last month sentenced in the High Court at Auckland to five years and five years six months respectively after being found guilty of bribery and corruption.

The Auckland councillor for Rodney, Greg Sayers, and Rodney Local Board member Colin Smith do not believe taxpayers should have a stake in Hiway Group until the Barrie George travel matter is resolved.