The Dunedin City Council has suspended its contract with a Black Power gang leader after he was arrested at the weekend on driving charges.

DCC Chief executive Sue Bidrose said yesterday the suspension related to alleged offending by Albert Epere that the council was made aware of on Monday.

Epere is facing driving charges in the Dunedin District Court after allegedly racing on State Highway 1 north of Dunedin on Sunday.

Court documents show Epere is also due to appear in court today on charges of possessing cannabis for supply and another drug-related offence.

The Otago Daily Times understands the drugs charges came after the armed raid of a Pine Hill Rd property yesterday morning.

Dr Bidrose said the $52,500 contract was suspended on Monday, pending the outcome of a court process and an internal investigation.

The contract, signed in October, would have seen Mauri Kohatu Incorporated undertaking weed control, litter control and path maintenance at a range of sites across Dunedin on a trial basis until June next year.

‘‘The council has a commitment to social procurement, but it is a two-way street,'' Dr Bidrose said yesterday.

‘‘We want to support people who are doing their bit to pull themselves up by their bootstraps, but this requires them to meet certain standards and we will be looking at this with regard to these projects,'' Dr Bidrose said.

The initiative came about after Mangu Kaha (Black Power) members made a submission to last year's annual plan asking the council to consider giving them contracts to maintain some of its green space.

No further comment would be made while this issue was before the courts.

Southern district organised crime squad leader Detective Senior Sergeant Malcolm Inglis said a ‘‘minimal'' amount of cannabis was found during yesterday morning's raid.

He declined to identify the man arrested.

Police said a 49-year-old man was arrested after three drug-related search warrants were carried out in north Dunedin.

CIB staff accompanied by AOS and uniformed officers carried out the raid.