Dunedin City Council must hang the companies out to dry

bear-sask-power-via-bbc-com-tweaked-by-whatifdunedin-1

Serious state of neglect in Aurora’s electricity network has potential to kill residents and leave Dunedin with a power crisis

AGAIN, why is the Otago Faily Times not taking out Grady Cameron and Graham Crombie from them there poles.

### ODT Online Fri, 21 Oct 2016
Fears poles could kill
By John Lewis
….Aurora Energy has said it would invest more money into its pole maintenance and replacement programme, and had contacted the Energy Safety Service to organise a compliance and safety audit, in a bid to ensure Aurora Energy’s infrastructure met safety requirements.
….[Richard] Healey said the Electricity Safety Act 2010 stated power poles that  were in poor condition had to be red-tagged and classified as either “Condition One  — not fit for design load” which meant it could fall down if the wind blows; or “Condition Zero — not fit for actual load”, which meant it could fall down without any environmental influences.
….“In total, there are about 3200 Condition One and Condition Zero poles. That’s a concern. The magnitude of the problem is fairly large.” [Richard Healey]
….Mr Healey said another big concern was the North City Two power cable, a 33,000 volt power cable which feeds the Dunedin city centre. The cable had been daily leaking about two litres of oil, used to insulate the cable,  for the past six years. There had been “token” efforts to find where the oil was going.
Read more + Videos

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“In terms of proximity to schools, hospital, rest homes… it is just out of control.” –Richard Healey

Delta had not advised WorkSafe of the pole replacement issue.

### Stuff.co.nz Last updated 18:45, October 20 2016
Dunedin lines company Delta under audit after whistleblower’s claims
By Jamie Small, Hamish McNeilly and Michael Hayward
WorkSafe has started an audit of lines company Delta after a whistleblower claimed its power poles were unsafe. A WorkSafe spokesman said the “immediate documentation audit” would be followed by an on-site review of Delta in mid-November. Delta, a Dunedin and Otago lines company, came under fire after former manager-turned-whistleblower Richard Healey said its power poles were neglected and dangerous.
….The Worksafe spokesman said it was not yet known when the audit would end. Energy Safety, a division of WorkSafe, is the national regulator for electrical safety and will conduct the audit. The audit will look at Delta’s safety management system and its performance. Identification, management and replacement practices for damaged poles would be part of the audit.
….WorkSafe was unable to comment on whether other lines companies in New Zealand had similar problems with rotting poles. All major lines companies contacted by Stuff said they had no problem.
Read more

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### channel39.co.nz Thu, 20 Oct 2016
Delta gets flack over neglected poles
A southern electricity company is under scrutiny for allegedly failing to repair and replace dangerous power poles. A random sample reportedly revealed that 99% of poles needing replacement within a year didn’t have the required red warning tags on them. Delta manages the electricity network in Dunedin and Central Otago and is part of the Dunedin City Council’s financial arm.
Ch39 article + Video

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Earlier story, the LINESMEN’S VOICES…..

### ODT Online Mon, 12 Sep 2016
Linesmen suggest powerpoles and lines a danger
By John Lewis
Electricity linesmen say it is only a matter of time before someone is killed by Dunedin’s decaying power network, after several poles and lines were downed by strong gales last week.
….A person from the industry, who declined to be named, said he and his colleagues were becoming increasingly concerned about the safety of the city’s network, particularly following the strong gales which buffeted the area on Wednesday.
….Another anonymous person, who appears to work in the industry, agreed. They sent an email to the Otago Daily Times expressing grave concerns about the condition of the city’s ageing power poles and lines, which were being severely damaged by “years of under-investment in the Aurora network”.
Read more

WorkSafe New Zealand
Contact WorkSafe 0800 030 040
http://www.worksafe.govt.nz/worksafe

Energy Safety
Part of WorkSafe New Zealand, Energy Safety acts as the regulator for ensuring the safe supply and use of electricity and gas in New Zealand. Energy Safety is responsible for providing an effective investigation, compliance, enforcement, and conformance regime for achieving electrical and gas safety outcomes.
http://www.energysafety.govt.nz/

Note: On Monday 4 April 2016, the new Health and Safety at Work Act 2015 (HSWA) came into effect. HSWA repeals the Health and Safety in Employment Act 1992, with immediate effect.

Related Posts and Comments:
20.10.16 Delta #EpicPowerFail : Delta fulfils Adam Smith’s 1776 Prophecy
19.10.16 Grady Cameron and Graham Crombie : Eyes tightly shut #FAIL
13.10.16 COMPLETE Dis-satisfaction with DCC, DCHL, DVML, DVL, Delta….
9.6.16 Aurora Energy Ltd warned by regulator

█ For more, enter the terms *delta*, *aurora*, *epic fraud* or *dchl* in the search box at right.

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: bbc.com – bear, tweaked by whatifdunedin

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18 Comments

Filed under Aurora Energy, Business, DCC, DCHL, Delta, Democracy, Dunedin, Economics, Finance, Geography, Infrastructure, Media, Name, New Zealand, OAG, Ombudsman, People, Pet projects, Politics, Project management, Property, Public interest, Resource management, Travesty, Urban design, What stadium

18 responses to “Dunedin City Council must hang the companies out to dry

  1. Gurglars

    Grady Teflon Cameron and Dave Teflon Cull will escape by flagging global warming, Climate change and the necessity of invoking national government support. No bastard will take the samurai sword except poor Richard Healey who will be compared with Jack the Ripper, Gable Tostee and Donald no Trumps.

  2. Hype O'Thermia

    Human nature prefers mediocrities and slime-balls. People with the other balls – Integrity and Honour – seem to make us uneasy. Why? Do they make us aware of our own less than admirable qualities? Do we resent them – even while mouthing appreciation – for embodying that Kiwi sin (outside of sports) of being way superior to average?

    Christmas cards for Richard Healey, please address to Room Next to Julian Assange, c/- Ecuador Embassy, London, Brexitania.

  3. Elizabeth

    Questions received.
    Fri, 21 Oct 2016 at 11:18 p.m.

    Answered in part by me.

    Who is on the audit/risk committee of DCHL, Delta and Aurora?
    Is it all the directors of the relevant company?

    I Dunedin City Holdings Ltd (DCHL)
    The DCHL 2016 Annual Report refrains from much detail about Audit and Risk; besides, the Annual Report takes the form of a qualified report only.

    The report (page 15), says:
    “Strategic issues and management’s detailed budget and five year business plans are reviewed annually by the board and visits to key operational locations are encouraged. Audit and remuneration committee are created where appropriate and oversee these important functions.”

    The report (page 51), says:
    “Performance Target (General) – 3.0 Matters of Substance
    Dunedin City Holdings Limited is to report matters of substance to Dunedin City Council within five days of the board becoming aware of them.
    Outcome Achieved [for 3.0 Matters of Substance]:
    All matters of substance were reported to Dunedin City Council within five days of occurrence.”

    II Delta Utility Services Ltd
    The Delta Audit and Risk Committee is Not independent. The Delta 2016 Annual Report (page 15), says:

    “AUDIT AND RISK COMMITTEE [all of the company directors] Stuart McLauchlan, Ian Parton, David Frow and Trevor Kempton were members of the Audit and Risk Committee of the Board during the year. Stephen Thompson [new company director] was appointed effective from 1 June 2016. The Audit and Risk Committee has the responsibility for agreeing the arrangements for audit of the Company’s financial accounts. Its responsibilities include ensuring that appropriate audit consideration is given to the following issues:
    • effectiveness of systems and standards of internal control
    • quality of management controls
    • management of business risk
    • compliance with legislation, standards, policies and procedures
    • appointing and monitoring the internal audit function.
    Crowe Horwath continues as internal auditor to the Company. Specific areas for its review were identified and a number of reviews have been completed, with the results reported to the Audit and Risk Committee and the Board. Review of further areas is on-going and progress is satisfactory.”

    Meaning, the Audit and Risk Committee – therefore, All Delta Directors – have FAILED in their duty with regards to Public Safety, Workplace Safety, and Industry Compliance.

    III Aurora Energy Ltd
    The Aurora Audit and Risk Committee is Not independent. The Aurora 2016 Annual Report (page 20), says:

    “AUDIT AND RISK COMMITTEE [all of the company directors] Stuart McLauchlan, Ian Parton, David Frow and Trevor Kempton were members of the Audit and Risk Committee of the Board during the year. Stephen Thompson was appointed effective from 1 June 2016. The Audit and Risk Committee has the responsibility for agreeing the arrangements for audit of the Company’s financial accounts. Its responsibilities include ensuring that appropriate audit consideration is given to the following issues:
    • effectiveness of systems and standards of internal control
    • quality of management controls
    • management of business risk
    • compliance with legislation, standards, policies and procedures
    • appointing and monitoring the internal audit function.
    Crowe Horwath continues as internal auditor to the Company. Specific areas for its review were identified and a number of reviews have been completed, with the results reported to the Audit and Risk Committee and the Board. Review of further areas is on-going and progress is satisfactory.”

    Meaning, the Audit and Risk Committee – therefore, All Aurora Energy Directors – have FAILED in their duty with regards to Public Safety, Workplace Safety, and Industry Compliance.

    Is there something in the Statements of Intent about no nasty surprises for Delta and Aurora? There is for DCHL with Council.

    [Yes, see these page references]

    Dunedin City Holdings Ltd Statement of Intent (PDF, 494.2 KB)
    2 Aug 2016: Statement of Intent for year ending 30 June 2017

    (page 10)
    Goals: Keep the shareholders informed of all substantive matters.
    Objectives: On a ‘no surprises’ basis advise the shareholder promptly of any substantive matter that has the potential to impact negatively on shareholders and the company with a particular focus on the media.
    Performance measures: Number of substantive matters that have been reported to the shareholder within 5 days of the Dunedin City Holdings Limited board becoming aware of them.

    Delta Utility Services Ltd Statement of Intent (PDF, 401 KB)
    25 May 2016: Statement of Intent for year ending 30 June 2017

    (page 10)
    Goal: Keep the Shareholder informed of all substantive matters.
    Objectives: On a “no surprises” basis, advise the Shareholder promptly of any substantive matter that has the potential to impact negatively on the Shareholder and the Company with a particular focus on the media.
    Performance Measures: Substantive matters reported to the Shareholder within 24 hours.
    Targets:
    2017 All substantive matters reported within 24 hours
    2018 All substantive matters reported within 24 hours
    2019 All substantive matters reported within 24 hours.

    Aurora Energy Ltd Statement of Intent (PDF, 462 KB)
    19 Jun 2016: Statement of Intent for the year ending 30 June 2017

    (page 11)
    Goal: Keep the Shareholder informed of all substantive matters.
    Objectives: On a “no surprises” basis, advise the Shareholder promptly of any substantive matter that has the potential to impact negatively on the Shareholder and the Company with a particular focus on the media.
    Performance Measures: Substantive matters reported to the Shareholder within 24 hours.
    Targets:
    2017 All substantive matters reported within 24 hours
    2018 All substantive matters reported within 24 hours
    2019 All substantive matters reported within 24 hours.

    What meetings have the audit/ risk committees held? Did they have any reports about the issues raised by Richard Healey, and CD?

    [Not answered here; Christchurch Driver is a correspondent at What if? Dunedin]

    Have DCHL/Delta/Aurora a set of whistleblower rules? If not why not, since they are supposed to follow the systems that DCC has where they can.

    [No whistleblower rules immediately apparent for the council-owned companies, or not searchable online; links to DCC policy provided here]

    DCC Protected Disclosure/Whistleblower Policy
    This Policy aims to:
    2.1.1 Provide guidance and facilitate the disclosure and investigation of serious wrongdoing and to ensure protection for those employees who make disclosures in accordance with the [Protected Disclosures Act 2000] Act.
    2.1.2 Give effect to section 11 of the Act and to outline the internal processes that comply with the Act.
    2.1.3 Ensure suspected occurrences of serious wrongdoing are investigated appropriately in a fair, equitable and consistent manner.

    Protected Disclosure/Whistleblower Policy (PDF, 97.0 KB)
    The Policy sets out how you report serious wrongdoing such as corrupt, unlawful or irregular activities and what protection is provided to you in these circumstances.

    Protected Disclosure Act 2000 Procedure (PDF, 25.7 KB)
    This procedure should be read in conjunction with the Protected Disclosure/Whistleblowers Policy

    So many questions, so few answers.

    [ends]

  4. PG

    So a 33000 volt cable has been allowed to leak over 4000 litres of oil into the ground, somewhere in the vicinity of the CBD? And what is being done about this? Has this been reported as a risk to DCHL and the DCC? And isn’t this the high voltage feed that supplies the hospital? Has the DHB been informed of the consequences should that cable become de-insulated?

    • Hype O'Thermia

      Where are our planet-saving mayor, councillors and DCC personages? On a cycle lane far, far away?

      • PG

        Indeed. Where is the environmentally credentialed, prone to lacrimosity in council meetings Jinty when you need her? Now there’s a phrase I never thought I’d utter….

        • Hype O'Thermia

          Even Aaron and Dave don’t seem bothered. Pollution, fossil fuels – yeah-nah shrug whatev’s

        • Elizabeth

          The latest on Mayoral Succession is that Dave Cull won’t stand for re-election as Mayor in 2017. Meanwhile he will groom Green Party boy Aaron Hawkins as his replacement – with lots of help from the Green Party freakout boffins in coalition with the sainted threadbare Labour Party.

          So funny.

  5. Greta Good

    It is quite misleading of Grady Cameron to suggest that Delta have fallen behind with pole replacement in the last year. This problem was not made in a year. Recommended reading (too late for Grady, possibly not for his Board and the DCHL Board)…’Denial – Why Business Leaders Fail to Look Facts in the Face – and What to Do About It’ by Richard S.Tedlow, emeritus professor at Harvard Business School. Consider:

    “Every company reveals itself every day, wittingly or not. The same is true of every individual. During crises, companies don’t suddenly change. They are what they are, only more so.
    Think about the phrase “deferred maintenance”, a term often used to describe needed repairs, or upkeep that are delayed for financial or other reasons. This is not a happy phrase, especially to those of us who fly a lot. What does it mean? Does it mean that a mechanic decided not to use his wrench to tighten a bolt one more time because he felt like knocking off early to have a smoke? Doubtless in the history of aviation (to choose just one industry at random) there have been irresponsible mechanics whose laziness has resulted in disaster. That, however, is not the real problem.
    The real problem signified by deferred maintenance is a point of view woven into the fabric of a company. A firm that once might have focused on getting the job done now is concerned with getting done with the job. In her brilliant analysis of the disastrous decision to launch the space shuttle Challenger in January 1986, Columbia University sociologist Diane Vaughn uses the phrase “normalization of deviance”. Normalizing deviance is a long, drawn-out, incremental process. In order for Vaughn to discover and document it, she had to explore the history of the space programme for years prior to the fatal miscalculation on the night before the launch.”

    It is also misleading of him to suggest that Delta proactively engaged with WorkSafe after Richard Healey’s disclosure to Grady. A notion which has today been nullified by WorkSafe themselves. Delta management and Board have not front-footed this issue. They are, by the very nature of those in charge, unable to admit the facts of their own shortcomings. They have identified themselves as poor leaders. We have every right to demand better.

  6. russandbev

    And so the scramble for self-preservation will start in earnest with the main aim of protecting the guilty and punishing the innocent. No doubt that any whistle-blowers are the first to be denigrated, second will be any workers that have tried to notifiy faults but have been discouraged to do so who will no doubt cop blame. The aim of any enquiry will be passed by the directors and management of Delta to ensure that the scope does not include any liability or blame on them, and of course there is director liability insurance to fall back on if things get rough.

    Delta has been a cot case of extraordinary proportions since, as has been pointed out, the craven incompetency of past years where they actually borrowed millions to provide the DCC a dividend. All done for that great God rugby. Delta joined in whole-heartedly as most of them are rugby fanatics. How much of Dunedin ratepayer money went on team sponsorship, free electricity to run the lights at Carisbrook, big corporate suites? Millions and millions went down the toilet in those years and then all of a sudden when no accountability happened, they really ran amok with property speculation round Luggate, Jacks Point and the doozy of them all, Yaldhurst.

    And who is ultimately to blame?

    The governance of Delta, DCHL and finally the DCC aided and abetted by a voting public who don’t seem to care either to vote and who are not plainly informed by an independent newspaper. None of this stuff is new and I bet none of it was hidden all that well.

  7. Rob Hamlin

    My father gave me several specific pointers when I started work. One was that if I was given a verbal instruction that didn’t look proper, to ask for it in writing, and if either retraction of instruction or issue said written word was not forthcoming, to put one’s intention not to comply with the instruction, plus reasons for not doing so, in writing to the source of direction, along with the relevant cc’s higher up.

    It’s proved to be uncommonly good advice over the years – used several times and never once regretted, despite some bumpy travel in the immediate aftermath. The indestructible e-mail, as in the latest leak, has made this personal policy a lot more straightforward of late.

    • Hype O'Thermia

      Excellent advice.

      “She’ll be right.” I remember this as a modest phrase in the days when blowing one’s own trumpet was very un-Kiwi. It meant “She’ll be right for several years, even though we can’t get the original parts because of import restrictions and have to do work-arounds”.
      Then it turned into, that’s near enough to get the problem off my desk or list, after which it’s someone else’s problem, don’t tell me about it.
      My parents were firm believers in the wisdom of cc to another potential witness pref on higher level, in case shit later hits fan.

  8. Elizabeth

    Of course, at this juncture DCHL chairman Graham Crombie finds himself in the untenable position of being an associate member of the Commerce Commission, the industry Regulator. A conflict of interest that the public no longer has to accept.

    Note Mr Crombie doesn’t appear to be saying anything just now – a first in a long while in the context of his bullish (pipsqueak!) pronouncements on Delta in August with regards to the company’s buy in to the Joint Venture deal at Noble subdivision, Yaldhurst, Christchurch.

    • Hype O'Thermia

      Ahh, Elizabeth (“a first in a long while in the context of his bullish (pipsqueak!) pronouncements on Delta in August with regards to the company’s buy in to the Joint Venture deal at Noble subdivision, Yaldhurst, Christchurch”) – doesn’t it depend on the bull?
      His record with Delta – we’ll leave it at just Delta for the minute – suggests china-shop.

      “China-shop owners face financial ruin after bull runs amok.”

  9. russandbev

    Mr Crombie is laying low at his Clyde crib in Drivers Rest this weekend. Was looking forward to engaging in some discussion, but the blinds are drawn shut.

    • Elizabeth

      Could be counting the pennies in his mattress, debating his next move. So many people about with smartphones in Central Otago.

      • Elizabeth

        I note the car parked at his Dunedin residence is the same as parked at Drivers Rest, Clyde. So the property question is solved, should the media wish to track ‘im. Also look for a jetski in Google Street View.

  10. Gurglars

    Definition of a JetSki:

    An admirable device eminently capable of taking personage out of range of journalists and also an advantageous system of heading into oblivion or beyond!

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