Chorus says some of the matters it is looking into concern "improper behaviour", and others question if its subcontracting model is working as intended.

Chorus and its largest contractor Visionstream are investigating allegations of improper practices, including bribery, after concerns were raised by whistleblowers over the roll-out of ultrafast broadband.

The whistleblowers' claims ranged from conflicts of interest around business interests held by some Visionstream and Chorus staff, to a suspicion a Visionstream manager had accepted bribes for approving linesmen to carry out work on the new broadband network.

A Visionstream spokeswoman said: "We take allegations of this nature very seriously and are conducting a thorough investigation into these allegations. We will take immediate action on any matter that is found to be inconsistent with our strict code of conduct and employment conditions."

Chorus – the business which is overseeing the roll-out of much of the country's ultrafast broadband – thanked the whistleblowers for raising the concerns.

"Some of the allegations relate to wider concerns questioning if the overall subcontracting model is working as intended, and others allege improper behaviour by individuals," Chorus said in a written statement supplied by Chorus spokesman Ian Bonnar.

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The latest allegations are largely separate to an investigation being carried out by the Labour Inspectorate into complaints about the widespread exploitation of migrant workers involved in building the new broadband network.

Chorus employs 930 staff but relies on about 4000 workers employed by layers of contracting and subcontracting firms – many of them small businesses – to build and maintain its networks.

Chorus appointed former deputy State Services Commissioner Doug Martin of professional services firm MartinJenkins to investigate the employment practices of contractors working on the broadband roll out in October.

Stuff facilitated and attended a meeting between Chorus, whistleblowers from three businesses, and Martin last month after being contacted by a director of a subcontracting company who made the allegations that Chorus and Visionstream are now investigating.

JOHN ANTHONY/STUFF Chorus and contractor Visionstream are "formally investigating" allegations with Chorus also carrying out its own investigations.

One of the whistleblowers said setting up his subcontracting firm had been the "worst mistake" he had ever made.

Thousands of dollars of payments due to his company had been deducted with improper explanation and he had been forced to let go of staff, he said.

Bonnar said Chorus was working closely with Australian-owned Visionstream to conduct formal investigations into the allegations "along with conducting our own investigations".

TOM PULLAR-STRECKER/STUFF Chorus relies on a complex web of contracting and subcontracting firms that employs about 4000 people.

"Along with Visionstream, we are following strict whistleblower protocols, including protecting the identity of the individuals who have raised the issues directly to us," he said.

"A full and thorough process is being followed to ensure any response is fair, accurate and proportionate, as well as protecting the privacy of anyone implicated by the allegations until investigations are completed."

Chorus and its primary contractors were "absolutely committed to resolving issues within the subcontracting environment and Chorus thanks the individuals for raising their concerns in order for them to be thoroughly investigated", he said.

One of the whistleblowers said he was happy with Chorus' response so far. "It looks like things have happened. I have heard through the grapevine that there has been some activity."

SUPPLIED The road towards gigabit speeds has been fraught with controversy.

It is understood the Labour Inspectorate plans to take action against three or four Chorus subcontracting companies accused of breaching employment conditions, with the first cases set to go to the Employment Relations Authority in February.

The inspectorate said in October that it had found "widespread" breaches of employment law and identified several workers who were working in breach of their visa conditions and one overstayer, during its investigation.

"Overstayers put themselves in a dangerous position and are vulnerable to exploitation by unscrupulous employers and often have to operate on the margins of society," Labour Inspectorate acting national manager Loua Ward said at the time.

Who is Chorus?

Chorus came into being when Telecom was "structurally separated" into two businesses in 2011.

The company owns the country's copper broadband network. It is also building the bulk of the fibre-optic ultrafast broadband network, including in Auckland and Wellington but not Christchurch.

Chorus is heavily-regulated, but listed on the NZX where it is valued at just over $2 billion.

Who is Visionstream?

Visionstream is a division of contracting company Ventia which is based in Australia.

Visionstream is in year seven of a 10-year contract to lay ultrafast broadband for Chorus.

What is the ultrafast broadband network?

The broadband roll-out is one of the biggest infrastructure projects ever undertaken in New Zealand.

It involves rolling out fibre-optic cable to the streets of 340 towns, covering 87 per cent of the population by 2022. Chorus and other local fibre companies are obliged to connect homes and businesses when they ask for ultrafast broadband from an internet provider.