Beam e-scooter money rejected as Auckland Council approached after alleged scam

Auckland Council ordered Beam scooters off city streets in August and complained about the company to police. Photo / Michael Cunningham

Auckland Council has turned down a financial settlement offer from global e-scooter company Beam Mobility after an alleged scam to cheat New Zealand and Australian councils out of income.

In a statement to the Herald, the council confirmed it had received a confidential settlement offer from Beam.

The council declined to accept it.

“We are not able to share any more details regarding this offer.”

Wellington City Council has been approached for comment.

In August, Auckland Council cancelled Beam’s e-scooter licence and ordered it to deactivate its fleet of scooters in the city.

The move followed the council’s investigation into a whistleblower’s allegation that the Singapore-owned firm put hundreds more e-scooters on Auckland streets beyond its operating limit of 1200, or 1400 including seated models.

Beam was also accused of manipulating software the council used to keep tabs on e-scooter numbers.

The council said in August that it had referred the matter to the police.

Local authorities in Brisbane, Canberra, Townsville, Auckland, and Wellington all dumped the Singapore-based scooter firm after the Australian exposed an alleged Beam strategy to deploy hundreds of unauthorised scooters to generate extra profit.

The Australian alleged the firm defrauded various councils out of “millions of dollars” by operating phantom scooters, or rides unknown to councils, with no revenue-sharing.

Auckland Council charged a flat fee per scooter per year, but Wellington City Council took an 11c fee on each ride.

The Australian last week reported the company was “deeply apologetic” in August when its so-called Running Hot Project was uncovered and had rejected any suggestion there was a scheme to deprive councils of revenue.

At the time, the Herald reported Beam as saying the extra e-scooters were put in place to make up for those that were broken or missing.

But the company also faced allegations that it had actively tried to avoid the extra scooters being detected by councils and had flagged some scooters as inoperable when they were, in fact, rideable.

The Australian last week reported that after Beam commissioned an independent analysis of the issue, the company’s lawyers Corrs Chambers Westgarth offered financial compensation to governments in Brisbane, the Australian Capital Territory, Auckland, and Wellington.

A Beam spokeswoman was reported to have said once the settlements were finalised and a separate review of the company’s corporate guidance was finished, a governance report with recommendations would be made public.