Ex-CEO's $460K accommodation upgrade sparks fraud investigation on Chatham Islands
A scathing report by the Auditor General has exposed serious misconduct by former Chatham Islands Council chief executive Paul Eagle. His handling of a project to upgrade his own accommodation led to cost overruns of more than $250,000, with the final bill reaching $460,001.65. The findings have now been referred to the Serious Fraud Office (SFO) for possible investigation.
The Auditor General's report revealed that Eagle took sole control of the project, despite a clear conflict of interest. Instead of seeking approval from the council, mayor, or deputy mayor, he personally edited or created quotes and contracts. His decisions also lacked financial prudence, with the original $200,000 budget ballooning to $460,001.65, plus an extra $37,739.19 in rental expenses.
Eagle admitted to poor judgement in a public apology. He claimed he had not received a formal induction and should have sought clearer guidance. However, the report described his actions as unacceptable and misleading, raising broader concerns about procurement policies, conflicts of interest, and financial reporting within the council. The Chatham Islands Council has since forwarded the report to the SFO. While no legal action has yet been taken, the agency is currently assessing whether grounds exist for a formal enquiry or criminal investigation. Interim chief executive Bob Penter declined to comment, and attempts have been made to contact Eagle for further response.
The Auditor General's findings have left the council facing serious questions about governance and oversight. With the SFO now reviewing the case, the outcome could determine whether further action is taken against Eagle or the council itself. The total cost of the project, at nearly half a million dollars, remains a key point of contention.
