The head of Local Government New Zealand says if three former local government employees are found guilty of bribery and corruption, it'll be the first he's heard of it.

The Serious Fraud Office has led the investigation into Stephen Borlase, Barrie George and one other with name suppression, over undisclosed payments and gratuities worth more than a million dollars.

The three former Rodney District Council and Auckland Transport employees appeared in the North Shore District Court this morning.

Local Government New Zealand president Lawrence Yule says there are practices and declarations in place that stop this from happening.

"Local Government prides itself, and as does New Zealand, in that it doesn't have corruption. We don't deal in a bribery sort of scene."