Public grant on hold as SFO called in

David Johnson, chairman and publisher of Trends Publishing International. Supplied to New Zealand Herald

The Serious Fraud Office is considering a referral from the Government's research and development body about a publishing company that received $333,000 of taxpayer funding.

Callaghan Innovation has suspended a three-year growth grant, approved in March, for Trends Publishing International, a company based in Ellerslie associated with home and design publication Trends Magazine.

The type of grant Trends Publishing International received was non-discretionary, which meant if a company met the relevant criteria it was eligible for the funding.

The firm received $332,966 from Callaghan before the grant was put on hold, the Government body said.

"Concerns about the legitimacy of some of Trends' claims against the approved R&D funding led to an internal investigation, followed by an independent audit. The matter has also been referred to the Serious Fraud Office," Callaghan Innovation said.

Trends Publishing International is directed by David Johnson and Paul Taylor, according to the Companies Office. No one answered the phone when the Herald called Trends Publishing's offices.

Callaghan Innovation said suspension of a grant gave a company time to respond to a notice of a breach before it decided whether to terminate the taxpayer funding.

Callaghan Innovation's Sarah Holden said it had not yet received any response from the company.

An SFO spokeswoman said it was "considering the matter".