WELLINGTON (Reuters) – America’s Cup holders Team New Zealand on Tuesday launched a blistering condemnation of the government department in charge of next year’s event following an investigation into financial impropriety.
TNZ were cleared of financial wrongdoing in August following an audit of the public funding from the Ministry of Business, Innovation and Employment (MBIE) to America’s Cup Events (ACE), the body organising the regatta on behalf of TNZ.
The team, however, said MBIE had acted inappropriately and in bad faith during the investigation, releasing documentation to substantiate their accusations.
MBIE have not responded to a request by Reuters for comment, although the New Zealand Herald and Stuff Media reported they refuted the claims.
The documentation claimed MBIE had spent six months working with a company contracted to ACE to gather information before they told TNZ that allegations of impropriety had been made.
“We feel that we must now set the record straight having tried to respect a due process in this saga all year,” TNZ said in a statement.
“We have wanted to avoid such a public condemnation of MBIE but given their moves to conceal their totally inappropriate behaviour through this protracted contractual process, we now feel obliged to release a suite of letters addressed to MBIE and Ministers which call MBIE to account for their actions.
“These letters paint quite a different story than that currently being presented.”
The New Zealand government and Auckland Council have contributed about NZ$250 million ($164 million) to host the event, including infrastructure spending.
MBIE agreed to give about NZ$40 million in funding to ACE.
The 36th America’s Cup will start in January with a regatta involving challengers from Italy, Britain and the United States before the winner faces TNZ for the Cup in March.
(Reporting by Greg Stutchbury; Editing by xxxxxxx)
