Manukau City Mayor Len Brown says the council is considering legal action after accusations that council staff committed fraud.
An article in yesterday's Sunday Star Times alleged a council staff member had approached a Manurewa restaurant, where Mr Brown had dined, to "make up" a dinner receipt that excluded purchases for beer and wine.
However, the council says the accusation is completely false and has struck out at the report, calling it scandalous.
Mr Brown said the Star Times had "totally overreached. Bad, bad, bad."
"The accusation of fraudulent-type behaviour both against myself and the council was just appalling.
"We will be giving [legal action] serious consideration and that's all I'm going to say at this time.
"It was a serious accusation that was totally wrong."
The mayor was also upset that Manukau was misspelled "Manakau" in the article's introduction.
"That was the ultimate insult. At least get that right," he said.
The dinner, at the Volare Italian Restaurant last September, cost $810 and was listed as an expense on the mayoral credit card.
Last night, Mr Brown told the Herald that the dinner was "most definitely" council business, a fundraiser attended by council staff and community members.
Council chief executive Leigh Auton also issued a statement in relation to the Sunday Star Times article, confirming that staff did ask the restaurant to make up a new receipt.
But he stressed that was only so that a GST number was included - as the original did not have one - and in no way was the restaurant asked to exclude any details from the receipt.
Mr Auton said that during a regular internal audit process, council staff had made several phone calls to suppliers to get copies of transaction receipts.
But at no time was anyone asked to "make them up", he said.
"Yes, a staff member did ask for a copy of a receipt. But at no time was the restaurant asked to fabricate or exclude details, and this has been confirmed by the restaurant owner.
"The receipt was requested as part of our normal business processes."
Mr Brown has previously said he repaid the council for his personal spending, totalling $638.27, as part of the $16,977.22 he had spent on the council credit card since becoming mayor in 2007.
He told Campbell Live he had used the council card to buy personal items because his family had only one credit card, and he had left it with his wife.
Last night, he also took issue with allegations that it took him more than a year to pay back $638.27 to the council after his first purchase - a Christmas ham he bought on December 23, 2008.
Mr Brown said he paid for the ham in January last year.
However, council officials could not find any record of that, so in March this year he made another payment to cover the cost of the ham.
Mayor calls foul over expenses story
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