SFO probes double-dip trust claim

By TONY WALL

The Serious Fraud Office is investigating how the Auckland Rescue Helicopter and Child Flight trusts spent hundreds of thousands of dollars donated for specialist medical equipment.

The SFO, which raided the trusts' base and staff members' homes in February, is looking into allegations of double-dipping and misuse of grants in a wide-ranging financial probe.

It has asked several charitable organisations, including Sky City Community Trust, Pub Charity and the Lion Foundation, to hand over all documents relating to donations to the helicopter operation and its offshoot, the Child Flight Trust.

Documents have also been taken from some of the trusts' suppliers. It is alleged the trusts would apply to charitable organisations for money to buy the same piece of equipment - such as incubators and ventilators - then keep any extra money.

The Herald has also spoken to a former staff member who alleges grants were not spent on the equipment they were given for, instead going into a general operating pool.

Helicoper trust chairman Malcolm Beattie said he had no knowledge of either practice. He was confident the SFO investigation would clear the operation and all individuals.

An SFO spokeswoman said three people were working full-time on the investigation. "We know there's a lot of public interest so we're not dragging our feet," she said.

In 2000, the Child Flight Trust received $95,000 from Sky City Trust to buy a portable incubator.

The Herald has spoken to a source who claims no incubator was bought despite repeated requests to senior management.

Mr Beattie insisted the incubator was bought with the Sky City grant. A spokesman for the Sky trust confirmed that original copies of documents relating to the transaction had been taken by the SFO.

The Herald source spoke of another case last June, when the Variety Club donated $23,000 for a ventilator. Despite being pestered for several months, the managers did not buy the unit, and the money went into the general pool, the source said.

Variety Club chief executive Dr Nicole Bassett confirmed the money was donated but said she was not in a position to comment further.

The Herald reported last month that the SFO was investigating millions of dollars spent by the trusts on advertising billboards placed on pubs co-owned by trustee Wayne Porter.