The Office of the Auditor-General has confirmed it will investigate a property deal the Christchurch City Council made with a developer.
The council is spending almost $17 million to buy five properties from developer. Dave Henderson.
The move has drawn criticism from those who believe Mr Henderson contributed to Bob Parker's successful mayoral campaign, and council guidelines were ignored so the deal could get passed.
Eight formal complaints have been made to the Auditor General and the office confirmed on Wednesday it will hold a formal investigation.
The agency it has begun by looking into the council's decision-making processes.
-Radio New Zealand News