Ex-CEO's $460K housing project sparks fraud probe on Chatham Islands

A report by the Auditor General has exposed serious concerns over former Chatham Islands Council chief executive Paul Eagle's handling of a housing upgrade project. The findings reveal financial mismanagement, conflicts of interest, and misleading conduct, prompting a review by the Serious Fraud Office.

The project, initially budgeted at $200,000, ultimately cost $460,001.65—with an extra $37,739.19 spent on rent—raising questions about oversight and accountability.

The Auditor General's report found that Eagle had sole control over the project to upgrade his own accommodation. He edited or created quotes and contracts, showing poor judgement and failing to make conservative financial decisions. His actions may have also benefited himself and his family, which council policy required approval from the mayor or deputy mayor.

Eagle apologised in a letter included in the report, claiming he never received a formal induction when he took the role. Despite this, the report described his behaviour as unacceptable and misleading. The Chatham Islands Council has since referred the matter to the Serious Fraud Office (SFO). As of March 19, 2026, the SFO is assessing whether to launch an enquiry or criminal investigation. No legal action or official decisions have yet been made public. Interim council chief executive Bob Penter declined to comment, while attempts have been made to contact Eagle for a response. The report also highlighted broader issues for the council, including weaknesses in procurement policies, conflict-of-interest checks, and financial reporting.

The findings place pressure on the Chatham Islands Council to address integrity and governance failures. The SFO's review will determine whether further action is taken against Eagle or the council.

With the project's final cost exceeding its budget by over $250,000, the case underscores the need for stricter financial controls and transparency in local government.