America's Cup: Allegations of embezzlement off the table: Kiwis back on course

The New Zealand America's Cup organisers (ACE) and Emirates Team New Zealand (ETNZ) can once again focus on their actual tasks: hosting the 36th America's Cup and defending the oldest sporting trophy in the sailing world - which presents enough challenges in times of the coronavirus pandemic. Following an extensive investigation by financial investigators from the government-commissioned agency Beattie Varley, the domestic Cup dominators have been cleared of any allegations of misappropriation of state funds or even personal enrichment.

The New Zealand Ministry of Business, Innovation and Employment (MBIE) has completed its investigation into allegations against Emirates Team New Zealand Limited and the America's Cup Limited organisation in consultation with Auckland City Council as host partner. The outcome was released today with a joint statement from all parties. The Beattie Varley Report found that there was "no evidence of financial impropriety or misappropriation of government funds". The investigation also found that there was "no loan from ACE to ETNZ and no fraudulent behaviour on the part of ACE or ETNZ". No "Crown money" was used for personal expenses of team boss Grant Dalton. Overall, there was "no financial impropriety of any nature".

However, there was also a rebuke from the ministry's managing director. However, Caroly Tremain remained vague in her criticism: "While it is excellent news that there were no financial improprieties and the escalation process has now come to an end, the Beattie-Varley report also contains some concerns about the records relating to various historical matters." The government investigation began when allegations against the organisers of the 36th America's Cup became public. The controversy was preceded by internal disputes and recriminations. As a result, Beattie Varley was commissioned to carry out an intensive investigation because the state authorities were concerned about the legitimate use of their funds.

Insights into the design for the new AC75 flying yachts, whose design financing is also at issue in New Zealand

The America's Cup not only has the status of a leading national sport in New Zealand, but is also regarded as an important economic factor and is therefore subsidised with millions in state funds. Caroly Tremain said: "The America's Cup is an important event for Auckland and for New Zealand. Even more so as we struggle through and recover from the effects of Covid-19. I look forward to working closely with ACE to deliver a world-class event that we can all be proud of." At the same time, Carolyn Tremain announced the imminent continuation of the agreed government funding.

However, one disagreement remains and should now be resolved as quickly as possible at the green table. The issue at stake is funding for the "AC36 event and design costs of the class" and whether or not these costs - estimated by various media at around 1.7 million euros - should be borne by the organisers and therefore ultimately by state funds. The parties have already agreed on an arbitration procedure.

For ETNZ CEO Grant Dalton, the review was also about the now successful defence against accusations that he had taken personal advantage of team funds. The team boss also said: "With the departure of the previous event managers, we have undertaken a thorough review of our personnel. We now have the team that can deliver the event. We have recruited experienced and respected event professionals to lead the preparations for the event."

Away from the internal New Zealand disputes with possible external repercussions, two teams have trained in the former and future Cup venue for the first time in recent weeks: In addition to Emirates Team New Zealand with helmsman Peter Burling, US challenger American Magic was also part of the impressive muscle show. The British and Italians are expected next in Auckland. The relocation of the teams, each with more than a hundred employees and some with families, is not easy during the coronavirus pandemic.

Click here for the detailed Beattie Varley Report here.

The New Zealanders released this clip after their first clash with the American Magic's American challengers at Hauraki Golf