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Home / New Zealand

Authority rules vibrator not a legitimate office expense

By Louisa Cleave
8 Aug, 2007 05:00 PM2 mins to read

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KEY POINTS:

An office manager who allegedly spent $32,000 of company money on personal items, including a home theatre system and a vibrator, has been ordered to repay the money.

The Employment Relations Authority said it was difficult to see how the $24 sex aide, cosmetics, sunglasses, lounge suite, washing
machine and alpaca cardigan "could in any way benefit" Paania Paki's former employer, Panel Holdings.

Ms Paki worked for the Huntly company for 15 years and resigned last November.

In a decision released yesterday, authority member Dzintra King ordered Ms Paki to reimburse Panel Holdings $32,713.68. Ms Paki did not attend the hearing, which heard allegations that she had spent more than $10,000 of company money on Trade Me. The Herald could not contact her yesterday.

Among the Trade Me purchases were the vibrator, a two-seater and three-seater couch, a home theatre system, sunglasses, gold studs and a topaz necklace. A further $20,000 was allegedly spent on personal power and phone bills, car repairs, credit cards and car hire.

Almost $3000 was traced to a Huntly car repair shop and $961 was spent at a chemist, according to an audit by PricewaterhouseCoopers.

The authority heard that Ms Paki resigned after an investigation into cashflow and administration payments.

Almost 400 banking "batches" that had been deleted from the computer system were recovered from ASB and linked to purchases made on Trade Me.

Dzintra King said Ms Paki had "attempted to frustrate" the employment hearing "by a deliberate lack of co-operation". "Given Ms Paki's failure to provide any rebuttal information and her failure to attend the hearing, and [forensic accountant] Mr Paterson's expert uncontested evidence, I have no hesitation in finding that Ms Paki breached her employment agreement."

Dzintra King also ordered Ms Paki to pay $15,000 in penalties.

A lawyer for Panel Holdings said a complaint had been laid with police.

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