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A former Manukau City Council manager has been charged with stealing hundreds of thousands of dollars from his employer to fund his gambling addiction.
The case involves nearly 70 offences believed to have been committed over a two-year period. It is understood the total amount could be more than $350,000.
The man is due to appear in court this week on a representative charge of obtaining by deception. The charge covers 69 separate offences.
It is believed he has admitted the charges to police and the council.
Council chief executive Leigh Auton said he was constrained in what he could say because the case was before the courts.
"Yes, there has been a fraud," said Auton. "That's a concern to any organisation."
He said the man's name had not been revealed to council staff but he was hoping a "fuller account" of the alleged offences could be revealed this week.
"There is a process involved."
Auton said the alleged fraud had been picked up by the council's internal auditing processes.
Councillor Jami-Lee Ross said the council's risk and assurance group had been set up two years ago and the case had proved its effectiveness.
"Yes, it's concerning this has happened.
"But I am happy that once it was found out they acted quickly," he said.
Ross said he did not know who the person was, but confirmed he had been in a "management position" at the council.
Another councillor said she did not know who the man was because councillors had been "kept in the dark" over the allegations.
She believed he had worked for the council for "quite a long time".
The case has striking similarities to that of Patrick Jackson, former general manager of the Refugees as Survivors Trust.
Jackson was jailed in 2006 for three years and nine months for misappropriating $745,000 from the trust, $660,000 of which he gambled away at Auckland's SkyCity casino.
The trust, which helps resettle traumatised refugees, received about $900,000 a year in funding, mostly from the Ministry of Health.