Transport Minister blindsided as SFO investigates Auckland motorway alliance
Monday, 11 May 2026
The Serious Fraud Office is investigating the contractor alliance responsible for Auckland’s motorway network, amid allegations of financial discrepancies of between $700,000 and $1.3 million, conflicts of interest, and preferential treatment of a subcontractor.
The Sunday Star-Times revealed a leaked preliminary review into a taxpayer-funded alliance set up to rebuild roads and rail links after Cyclone Gabrielle raised concerns about spending, contractor accommodation arrangements, staffing levels, and resistance to releasing information.
Do you know more? Contact Andrea Vance in confidence.
Now details of another internal report have emerged, pointing to further governance and conflict-of-interest issues within the Auckland motorway maintenance alliance.
Read more:
Money down the drain: Scathing Wellington Water report explained
Luxury rentals, empty apartments and spending concerns raised in leaked review
It comes as NZ Transport Agency Waka Kotahi (NZTA) confirmed there are six separate investigations involving taxpayer funded alliance contracts, totalling billions of dollars of spending.
And Transport Minister Chris Bishop said he was only informed of those investigations following questions from the Star-Times. He said he was dissatisfied with the timeliness and completeness of information provided by officials.
An alliance is a type of long-term contract used by NZTA and councils to deliver major road and infrastructure work.
Instead of a traditional fixed-price contract, the agency works directly with contractors, like construction or engineering firms, sharing responsibility for costs, delivery and management of the work.
The model is intended to improve efficiency, but relies heavily on internal oversight within the partnership.
The ASM alliance contract, with Fulton Hogan and HEB Construction, is estimated to be worth about $1 billion over 10 years.
It began in July 2019 and is due to run until 2028, with potential extensions, covering the operation and maintenance of Auckland’s 200km-plus motorway network.
An internal report, leaked to The Post, reveals the Auckland alliance board formally advised NZTA in early July 2025 that it had identified and was investigating concerns involving two staff and a subcontractor - a landscaping firm now in liquidation.
The director of the landscaping firm said he was aware an investigation had begun about a year ago, but hadn't heard anything since, was unaware what was alleged, or that the SFO was involved.
The company had provided services to ASM for about 2.5 years, but he couldn't put a value on the contract.
The concerns related to alleged undisclosed conflicts of interest, preferential treatment in procurement decisions, and possible irregularities involving billing and equipment purchases.
The SFO has opened a “part 1” inquiry (a preliminary investigation) into the allegations, with police also notified.
NZTA said it could not comment on specific allegations.
“The matter you refer to is subject to ongoing investigation. Information about investigations that have not yet been completed, are under external review or are with a law enforcement agency is withheld under section 6(c) of the Official Information Act,” a spokesperson said. (This clause is commonly used for matters likely to be subject to legal proceedings.)
“All NZTA employees complete annual conflict of interest training. Alliance partners and suppliers have similar processes in place,” he said, adding additional safeguards were recently been introduced within the ASM alliance.
He added: “NZTA does not undertake checks on subcontractors as this is the role of the alliance.”
The SFO refused to comment, saying it “does not routinely confirm or deny whether it has received a complaint or is undertaking an investigation”.
Bishop said he was only made aware of the investigations on Tuesday evening, following a “no surprises” notification prompted by questions from the Star-Times.
He said he had not yet been briefed by NZTA.
“To date, [I’ve received] only the information that has gone from NZTA to you … I have asked for an urgent briefing,” he said.
Asked what concerns he had about the alliance model, Bishop said he would withhold judgment until he had been fully briefed.
Asked whether he was satisfied with the timeliness and completeness of information provided by NZTA, he repied: “No.”