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Two former employees of the Canterbury Earthquake Recovery Authority facing fraud charges can now be named.
Simon Nikoloff (far left) Gerard Gallagher (second from left) with lawyers. Source: RNZ / Nate McKinnon
Simon Nikoloff and Gerard Gallagher were charged with corrupt use of official information in August last year, following an investigation by the Office of Serious Fraud.
It came after a 2017 report from the State Services Commission, which alleged that the two had a clear conflict of interest in entering into real estate deals through their own company while still employees of CERA.
Nikoloff and Gallagher appeared in Christchurch Superior Court this morning, where the suppression of names was lifted.
They both deny any wrongdoing.
Nikoloff faces two counts of corrupt use of official information and Gallagher faces three counts.
They are represented by attorneys James Rapley QC and Kathryn Dalziel.
They have been held on bail until their next court appearance in October.
When Michael Heron QC’s report was released on behalf of the State Services Commission in 2017, Commissioner Peter Hughes said that based on the findings, he would have recommended firing the two men if they were still working for CERA.
“I consider his actions to be a serious fault that is unacceptable in New Zealand’s public service,” he said in a statement at the time.
“I cannot direct state sector employers when making employment decisions, however based on what I have seen in Heron’s report, if it were up to me, I would not employ these people,” Hughes said in 2017.
Gallagher and Nikoloff went on to work for the Crown-owned company Ōtākaro, but were removed during the investigation.
The trial is scheduled for August next year.
