Councillor Dave McKenzie Faces Allegations of Invoice Alteration

The Central Otago District Council is confronting allegations of misconduct involving newly elected councillor Dave McKenzie. The accusations stem from a 2018 incident where an altered invoice from DM Property Solutions Ltd included an additional $1,000, raising concerns about potential financial misconduct. McKenzie, who represents the Vincent ward, was elected on Saturday following preliminary results.

In a recent social media post, Rachel Kerr, the widow of the former council property and facilities manager Mike Kerr, claimed that McKenzie altered invoices for personal gain. This allegation has prompted the council to release legal advice sought in 2018 regarding the matter, which was deemed civil rather than criminal.

Documented evidence indicates that the council and police reviewed the case, concluding that the alterations did not meet the legal criteria for fraud. Legal advice from Anderson Lloyd stated that the absence of a formal contract complicated the situation, making it difficult to pursue a breach of contract claim. The report highlighted that engaging a forensic accountant could incur costs exceeding any potential recovery, leading to the decision that the investigation should not proceed.

In March 2019, a report to the council’s Audit and Risk Committee revealed that DM Property Solutions had its contract cancelled after an audit discovered that 14 out of 17 invoices from the company were altered. The total for the subcontractor invoices was $4,754.08, yet the council paid $6,464.06, representing an overcharge of $1,709.98 or approximately 35.9%.

The report, authored by then planning and environment executive manager Louise van der Voort, noted that the owner of DM admitted to modifying the invoice to align with the claim. Following these findings, the council opted not to pursue further action, citing the legal advice received.

In response to the allegations, McKenzie issued a comprehensive public statement acknowledging mistakes made during the invoice process. He expressed that he had learned valuable lessons but emphasized that there was fault on both sides. Despite the controversy, McKenzie affirmed his intention to continue serving as a councillor.

As part of the council’s efforts to enhance procurement processes, chief executive Peter Kelly announced improvements implemented since the original incident. A procurement audit conducted in 2022 aimed to strengthen policies and reduce misunderstandings between the council and its contractors.

Kelly confirmed that a thorough review of the 2018 investigation is currently underway, with plans to share the findings publicly. The council hopes that these steps will prevent similar situations in the future, ensuring greater accountability and transparency in its dealings.

The ongoing public interest in this case reflects a broader concern about governance and integrity in local councils. As the review progresses, the council’s actions will likely be scrutinized by both the public and media.