EQC will take action over fraudulent invoicing

EQC will take action over fraudulent invoicing

The Earthquake Commission (EQC) says it will refer contractors to the Police if they file invoices for work undertaken on earthquake damaged homes in Canterbury that prove to be fraudulent.

EQC Chief Executive Ian Simpson said his staff had sufficient cause for concern about some invoices and that initial discussions had been held with Police detectives about the potential for laying fraud charges.

EQC has been criticised for failing to pay contractors. Amalgamated Workers Union Secretary Calvin Fisher has said that legal action against EQC, will be taken by a number of contractors his union claims to represent.

Mr Simpson says the Commission is paying the majority of contractors by the 20th of the month following receipt of an invoice, which is normal business practice. However Mr Simpson says EQC will not be forced by a campaign in the media to pay invoices that appear suspect without further investigation.

“The majority of contractors are doing a great job helping to rebuild Christchurch and the Canterbury region. They are providing a professional service to the homeowner and providing detailed and accurate invoices to EQC. These contractors are being paid in a timely fashion.”

“There are just under 700 accredited contracting firms working under the Fletchers structure which equates to a workforce of 3500 people. Approximately $8 million is being paid to these contractors weekly,” Mr Simpson said.

“We are dealing with thousands of invoices. In some cases the information provided by contractors is insufficient, but the charging is genuine.”

“However we are concerned to find some companies are submitting invoices for work that, on investigation wasn’t done, or wasn’t done to a high enough standard We are also getting invoices with hourly rates that are greatly inflated.”

“We have worked closely with the national bodies for both builders and plumbers and have determined a satisfactory hourly rate for the scale and nature of work to be undertaken. When we receive invoices where that hourly rate is inflated it is incumbent upon us to ask questions,” Mr Simpson said.

“As a government agency we have a duty to be able to show prudent use of funds.”

Mr Simpson said that the Project Management Office, set up by EQC and run by Fletchers is employing a large number of Christchurch tradespeople.

In early May Mr Simpson asked for contractors, who believed they had overdue payments, to contact EQC urgently to resolve any issues. EQC received information from 324 contractors with outstanding invoices totalling $7 million. EQC has since resolved over half of those outstanding invoices, totalling $4m while the rest remain under review.

“We are seeking more information from contractors on the remaining invoices,” Mr Simpson said.

ENDS

© Scoop Media