Invoices falsified in $178K scam

‘‘This is not a case where the offending was born out of greed.’’ Pip Hall QC Lomiga Vaaelua’s defence counsel

A roading engineer who says he was upset by ‘‘racist remarks’’ while working for Hurunui District Council has admitted his role in a scheme that siphoned $178,365 from the council coffers.

All the money fraudulently taken by Lomiga Vaaelua, 52, an asset engineer in the roading division at the council, and Francis Robin Ilton, 67, the owner of Ekip Contractors based on the West Coast, has now been repaid.

The two men received home detention sentences after admitting charges of obtaining money by deception, in the Christchurch District Court on Thursday.

Vaaelua, seen as the main offender, was put on home detention for nine months, and Ilton received a seven-month sentence from Judge Quentin Hix.

Vaaelua’s defence counsel, Pip Hall QC, said his client had felt upset about the way he was being treated at work, and by racist remarks made to him at work.

Hall said Vaaelua became disillusioned at what he perceived as being ‘‘inadequately recognised’’ for the work he was doing and decided to supplement his pay with the false invoice scheme.

He had known Ilton from when Vaaelua worked for Grey District Council from 2009 to 2013.

At the Hurunui council, Vaaelua had authority to make purchases of up to $20,000 without requiring a manager sign-off.

The two men put through 15 false invoices over a period of two years, with money paid into Ilton’s account and then half paid to Vaaelua. The invoices were for work that was not done.

After Vaaelua resigned to go to another job, the scam was discovered when an insurance company reviewed the council’s accounts.

Ilton had paid all the money back, Hall told the court. Vaaelua has paid Ilton $50,000 and has another $5000 to be paid immediately. Another $200 will be paid fortnightly until a property is sold, when the rest of his half share will be paid.

Judge Hix noted the references he had been sent for Vaaelua, including support from the former district mayor.

Hall said a cultural report showed insights into why Vaaelua had ‘‘lost his moral compass’’ with this offending, at a time when he was seen as a respected and hardworking employee. He had provided assistance to others in the community, particularly the Samoan community, but was now suffering profound shame and remorse.

‘‘This is not a case where the offending was born out of greed. He did not use the funds he obtained for himself or his family. The whole of the funds were dissipated on helping others,’’ Hall said.

Judge Hix commented on Vaaelua’s cultural report, ‘‘particularly the issue of your Samoan culture and the challenges that might give rise to in terms of interacting with the wider New Zealand public’’.

Judge Hix described Ilton’s involvement as being a case of ‘‘wilful blindness’’, because he had trusted Vaaelua.

‘‘You contend you were not fully aware of what was going on,’’ the judge said.