A former Auckland Council employee was settled on an end sentence of two years and two months’ imprisonment after defrauding the public sector of more than $1 million in a prolonged scheme linked to a gambling addiction and fears for his safety, The New Zealand Herald reported.
Shyamal Sushil Shah, 27, at the Auckland District Court, pleaded guilty to one representative charge of obtaining by deception. Judge Kate Davenport declined his requests for home detention and for bail pending appeal, describing the offending as a “significant breach of trust.”
The offending occurred over a 17-month period while Shah was employed as a water network engineer with Watercare, where he oversaw infrastructure projects. The court heard Shah created and submitted 40 fake invoices under fictitious entities such as “Gardener Construction” and “Ben Gardener”, but with his own bank account number.
According to court documents, the invoices were paid by contractors who believed the work had been carried out by legitimate sub-contractors. The fraudulent costs were then passed on to Watercare, resulting in total payments of $1,039,146 to Shah’s account.
Shah was arrested in November 2023, during what had been planned as his final week at Watercare before relocating to Australia for a new job. At the time of sentencing, no funds had been repaid, but he appeared in court with a proposal to return approximately half the amount within a few months, using his KiwiSaver, a loan from his new employer, and significant financial help from his parents.
Judge Davenport described the parents' actions as “an amazing gesture” and said they must be “horrified and distressed," Herald quoted.
She noted that Shah’s colleagues had felt “hurt, betrayed and humiliated” by his actions, and were left wondering if their jobs were at risk during the internal investigation that followed. “It isn’t too much to say the betrayal by you has left a lasting scar,” the judge said.
Watercare, the agency responsible for Auckland’s drinking water and wastewater services, described the fraud as “sophisticated with complex backstories,” according to a victim impact statement from general manager of risk, quality and assurance, Nigel Toms.
Police prosecutor Matthew Hall opposed home detention, stressing the sustained nature of the offending and its planned execution.
Defence lawyer David Jones KC told the court Shah developed a gambling addiction that began at SkyCity Casino and worsened after being introduced to private games at a residence where he was given large lines of credit. Jones said Shah was later shown photos of a man who had been assaulted after failing to repay, and argued that his client had turned to crime out of desperation.
Jones said Shah had since worked three jobs and volunteered 267 hours with charitable organisations to begin making amends. He was still “very much sought after,” supported by his new employer, despite concerns it might impact future Watercare contracts.
The judge acknowledged Shah’s guilty plea, remorse, previous good character, rehabilitation efforts and willingness to repay the funds, applying a 55 percent discount to the final sentence. Deterrence and denunciation are important, she said, ordering also that the reparation be paid as promised.