Davy faces inquiry for fraud

By LOUISA CLEAVE and WARREN GAMBLE

Maori Television Service chairman Derek Fox yesterday laid a complaint with Wellington police alleging that his former chief executive, John Davy, acted fraudulently to get the job.

Police crime manager Detective Inspector Norm Cook said an investigation was under way.

Mr Fox said his complaint followed evidence he received on Wednesday that one of the three previous employers Mr Davy cited "did not stack up".

The service previously said background checks on Mr Davy were carried out with his three most recent employers.

Mr Davy came to New Zealand last June to run Intercom3000, a multilevel marketing firm providing internet access and online services. Three months later, it went under owing more than $600,000.

Mr Davy told prospective employers, in a letter dated last August, that he had successfully completed his mandate to realign the company and set up overseas banking facilities.

Mr Davy yesterday told the Weekend Herald that he would co-operate with a police investigation. In a statement taped to his door, he said he did not intend leaving New Zealand "until things are in proper order".

"No, I have made no plans to leave this weekend or any other weekend," it said. "Canada is not my destination."

Mr Davy asked for he and his family to be left alone.

"You cannot extract any more blood from us. We don't have any more to give."

A spokeswoman for the Maori Television Service said Mr Davy had not returned a $20,000 advance on his $140,000 salary.

A report by Ernst & Young this week did not identify any serious financial risks incurred by Mr Davy.

A second report, into the appointment process and who was responsible for security and credit checks on Mr Davy is due at the end of next week.

Mr Davy has been suspended from the Asia Hockey Association. An ice hockey refereeing job Mr Davy accepted for Hong Kong this month has been withdrawn.

The organiser, who did not want to be named, said Mr Davy was due to referee in a tournament on May 15-19. He said Mr Davy's airfares and accommodation had been included in the deal.

Full coverage: Maori TV