The Far North District Council is supporting an investigation of its activities by the Serious Fraud Office, announced yesterday by Mayor John Carter.
Mr Carter said late last year he and his councillors commissioned an independent consultant to examine council activities. That inquiry had subsequently been referred to the SFO, which last week confirmed that it would conduct a formal investigation.
Mr Carter said the Serious Fraud Office Act provided the SFO with extensive powers to investigate the affairs of any person if it has reason to suspect that an offence involving serious or complex fraud may have been committed.
The council was co-operating fully, but was unable to comment on the investigation.
"We are issuing this statement because the community has a right to know that an SFO investigation is under way, but that is all we can say at this time," he added.