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The government and the Auckland Council this
week launched a probe into allegations about financial
mismanagement at America's Cup Events (ACE), which will run the
event on behalf of the holders Team New Zealand.
No further payments would be made to ACE while the investigation
was carried out, Iain Cossar, Ministry of Business, Innovation
and Employment, General Manager Tourism, said in a statement.
"This will be revisited pending the outcome of the process."
The investigation comes as Team New Zealand (TNZ), which will
defend the 169-year-old sailing trophy in Auckland next year,
blamed "informants" for spreading "highly defamatory and
inaccurate" allegations about the organisation.
Cossar said the government had set aside NZ$40 million ($26
million) as an event fee to be paid to ACE. It had so far paid
about NZ$29 million "in line with contractual funding
milestones".
"This process is ongoing and there are contractual agreements in
place," Cossar added.
The New Zealand government and Auckland Council have contributed
about NZ$250 million in total for the hosting of the event,
which included infrastructure spending.
TNZ chief executive Grant Dalton said on Wednesday the body had
reported an alleged email scam to police after TNZ transferred
money to a fraudulent Hungarian bank account.
TNZ have denied any wrongdoing and said they had co-operated
fully with the government's investigation.
Teams from Britain, Italy and the United States are due to
compete early next year in revolutionary "foiling" monohull
yachts to decide who will challenge New Zealand in a series of
head-to-head races for the America's Cup.
(Reporting by Greg Stutchbury; editing by Richard Pullin)
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