NZ investigating quake fraud cases

NEW Zealand authorities are investigating two "very big" cases of alleged fraud by contractors working on the Christchurch rebuild.

Earthquake Recovery Minister Gerry Brownlee says 20 cases have been handed over to police and so far four have been successfully prosecuted.

"There are two very big cases being investigated by the Serious Fraud Office at the present time and there is a file of numerous other cases where there are discrepancies in invoicing," he told parliament on Wednesday.

"All agencies are working collaboratively to investigate and prosecute these cases."

Mr Brownlee was answering questions from NZ First leader Winston Peters, who asked whether he agreed with a KPMG estimate that rebuild fraud could reach $NZ1.5 billion ($A1.21 billion).

Mr Brownlee said the estimate came from an analysis of projects of the same size that had been undertaken elsewhere in the world.

The rebuild is costing about $NZ30 billion.

Mr Peters tabled a complaint to the police regarding the alleged falsification of time sheets by Southern Demolition and Salvage Ltd.

"If companies such as Southern Demolition and Salvage Ltd are found to have committed fraud, will they be removed from the list of accredited contractors on the Canterbury Earthquake Recovery Authority website?" he asked.

Mr Brownlee replied: "Yes."

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