‘I panicked’: Ex-MP Paul Eagle admits falsifying quotes to gold-plate his council house

2026-03-12 - 01:07

Former Chatham Islands chief executive Paul Eagle persuaded the council to budget $500,000 to renovate his house with new bathroom fittings, stainless steel benches, cabinetry and $18,000 of high-end Miele kitchen appliances. The spending on the council-owned house is just one of a litany of spending, conduct and management problems identified by auditors . “Together, they raise serious integrity questions for the Council to contend with,” says Auditor-General Grant Taylor He has tabled the office’s most damning report in many years, into what it calls Eagle’s “unacceptable” behaviour. Eagle resigned last month after being provided a draft copy of the report in confidence. The Auditor-General’s report stops short of saying he broke the law in altering the documents. “As the report says, we did not reach a view on the legality of the Chief Executive’s actions,” says Andrew Goddard, senior inquiries specialist at the Office of the Auditor-General. “In this case, we considered it sufficient to draw attention to the matter in our report.” Eagle’s successor as interim chief executive, Bob Penter, declines to comment on whether the council is referring the matter to police. He says the council recognises the findings raise serious issues about governance practices, procurement processes, and internal controls, and the council is working to improve its procurement and oversight. Eagle had been Wellington’s deputy mayor before being elected to Parliament as Labour MP for Rongotai from 2017 to 2023 – an electorate that, through an arbitrary accident of history, incorporates the Chatham Islands, 800km away. While still an MP in 2022, he ran unsuccessfully for the Wellington mayoralty. After leaving Parliament at the 2023 election, he took the Chathams chief executive job – through what he says was a genuine commitment to the local community, and family connections there through his adopted son. But his short stint on the island was enormously vexed; at a time when the council was deep in debt and unable to provide even basic community services, Eagle oversaw a $460,000 renovation of his council house, ran up large expenses, and flew his wife and son back and forth from the mainland on his own council flight allowance. “We recognise that the findings in this report will likely cause concern among the public and other public organisations, particularly given the Council’s precarious financial position,” the report says. “The Council has hardworking, dedicated staff who care about their community. It is important that the Council continues to receive support from central and local government partners. We consider it unlikely the Council can address our concerns without that support.” Mayor Greg Horler, who ousted former mayor Monique Croon at last year’s council elections, sought and obtained Eagle’s resignation last month, after being provided a draft copy of the Auditor-General’s report. “Our community expects the council to operate with the highest standards of transparency and accountability,” he says. “We accept the findings of the Auditor-General and are committed to ensuring that the lessons from this report result in stronger systems and better governance.” It was Croon who signed off Eagle’s expenses and the approval for his wife Miriam to subcontract on a big council strategy. The Auditor-General criticises the lack of scrutiny of his spending, but Croon is adamant she or the council sought an explanation for every $260 dinner or $352 fun run or $591 Anzac groceries bill. “I live in a very small community, and I’ve got people looking at me as if I’m a criminal,” she tells Newsroom. But while she rejects any suggestion that she and her council failed to adequately scrutinise Eagle’s spending, she does agree with the Auditor-General’s report on one thing: the council can’t sustain itself without the Government stepping in to help. “Yes,” she agrees, “that’s been the case for a number of years.” Eagle, who has been forthright in justifying his actions previously, is now declining to answer questions. He has written to the Auditor-General, saying he doesn’t agree with all the findings, but he does accept and take ownership of the concerns about his performance. He apologises for any impact it might have. He says he started the job three months earlier than expected, because his retiring predecessor became ill, and he didn’t receive a formal induction. “I wholeheartedly accept now that I should have sought clarity and support for this process.” In his early days in the role, he discovered the financial and operational environment at the Council was “more tenuous than I had anticipated”. There was very little administrative capability at Council, as these services were largely outsourced. Many local practices were informal, which he says added to the challenges of his new role. “Despite the lack of resources and formal processes, I proceeded with confidence to progress the changes I, and the former Mayor, thought the Chathams needed to secure its long-term economic future. I accept that my confidence was misplaced, and I made mistakes. I regret not seeking guidance sooner.” On altering the quotes and contracts, he says: ” I accept that my response to the Office of the Auditor-General inquiry fell short of the standards expected of a chief executive, specifically the handling of documentation and information to explain my actions. “In hindsight, I recognise I panicked when I realised documentation was incomplete and I tried to fix this. I deeply regret that those actions did not meet the standards I expect of myself and my role.” He’s offered to participate in a suitable hui or engagement process to acknowledge his mistakes and to apologise for his shortcomings as chief executive – if that’s what the community wants. He too agrees the troubled council will need ongoing help from central and local government partners.