The Serious Fraud Office says it is investigating the former chief executive of Counties Manukau Rugby Football Union and a community funding trust he is involved with.
SFO director Grant Liddell said the inquiry had been referred to the office by the Department of Internal Affairs, which oversees trusts that distribute money from gaming machines.
Liddell said the inquiry was into the "application and use of gaming machine proceeds through a trust".
Daniel Clifford, the former Counties chief executive, said the investigation partly focused on "substantial sums of money" paid to the Counties Manukau Institute of Rugby and Sport.
He set up that organisation in 2004 to build a rugby training academy but the building to house that academy has not yet been built.
Clifford said $1.2 million had been paid towards the building, but the deal had not been completed.
He was seeking other funding to complete the land purchase.
Trust fraud probe
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