22 February 2017

Corruption: R. v. Borlase & Noone

Sentencing principles on conviction for corruption and bribery mirror those for commercial fraud ruled Justice Fitzgerald when sentencing contractor Stephen James Borlase to five years six months jail and Auckland City employee Murray John Noone to five years jail for corruption in relation to local authority roading contracts.
As director of contractor Projenz (2005) Ltd, Borlase was convicted of corruption after providing benefits in excess of one million dollars to employees of Rodney District Council and Auckland City over a seven year period.  Payments covered overseas travel, hotel accommodation, iPads, mobile phone bills and invoices for non-existent consulting services.  Auckland City employee Noone was the direct recipient of benefits totalling some $1.1 million.
This was not a victimless crime, Justice Fitzgerald said. Auckland City incurred substantial legal and accounting costs investigating the relationship between Borlase and Noone.  Auckland City and Auckland Transport employees suffered reputational damage and ongoing public suspicion after news of corrupt payments became public.  This offending also tarnished New Zealand’s reputation as a nation where public corruption is virtually non-existent.
The level of corruption described in evidence exceeded anything previously before the courts.  Justice Fitzgerald used principles applied to commercial fraud convictions in deciding length of jail terms for the two convicted: the magnitude and sophistication of the offending; motivation for the offending; extent of losses; period over which the offending took place; seriousness of any breaches of trust; and the impact on victims.   
R. v. Borlase v. Noone  - High Court (22.02.17)

17.014