Deloitte report released #Delta #Aurora

Updated post
Mon, 12 Dec 2016 at 11:56 p.m.

aurora-report [supplied by DCC]

Deloitte’s Steve Thompson – appointed to the Delta and Aurora Boards in 2015 – is to head two (new) separated (“armslength”) companies.

Grady’s future is between the lines.


Monstrous understatement from our Mayor Cull:
“The poles network was not as safe as it should be.” ….LOL

Dear god, there appear to be a few capital raising issues to curtail the service delivery promised. Further, Dunedin City Council will receive the wrath of two other councils…. Let’s not be naive about the extent of problems with the DANGEROUS NETWORK. This is not a POLES ONLY exercise. And where, oops, have we seen Steve Thompson before, Deloitte and Otago Rugby governance. South Auckland pokie bars, ORFU, anyone ?

An inquiry into thousands of failing power poles has recommended major changes to the lines companies involved. Thousands of rotting power poles are due for replacement in Otago. (RNZ)

### 38 minutes ago
Rotting power pole whistleblower vindicated
By Ian Telfer, Otago-Southland Reporter
The Dunedin City Council-commissioned inquiry was one of three started in October after a whistleblower revealed almost 3000 power poles in Dunedin and Central Otago, managed by Aurora Energy and Delta, needed urgent replacement. Councillors debated Deloitte’s report, which covered the scale of the problem and management, for more than two hours. The report recommended health and safety upgrades and for Delta and Aurora’s board and management to split. Mayor Dave Cull said the whistleblower, Richard Healey, had been largely vindicated. Mr Healey accused the management of not understanding the scale of the problem and of not seeing just how dangerous it was. Deloitte found serious systematic problems in the network.
Read more

[Audio] Inquiry into failing power poles recommends big changes  (3′01″)
RNZ Checkpoint (12 Dec 2016)

█ For more, enter the terms *delta*, *aurora*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

Posted by Elizabeth Kerr

This post is offered in the public interest.


Filed under Aurora Energy, Business, Central Otago, DCC, DCHL, DCTL, Delta, Democracy, Design, Dunedin, DVL, DVML, Economics, Electricity, Finance, Geography, Health, Highlanders, Infrastructure, Name, New Zealand, NZRU, OAG, Ombudsman, ORFU, People, Perversion, Pet projects, Politics, Project management, Property, Public interest, Queenstown Lakes, Resource management, SFO, Site, Stadiums, Tourism, Town planning, Travesty

30 responses to “Deloitte report released #Delta #Aurora

  1. Gurglars

    So Deloitte does the investigation and the head of Deloitte gains a new position to be created as a result.

    Stone the bloody Crows, now their conflicts of interest have conflicts of interest.

    Will the press see the irony or will they continue to be of the genus Osterreich.

    • Elizabeth

      Today it was seen that Deloitte had taken down the webpage for Office Managing Partner and Tax Partner Steve Thompson.

      This for ‘good reason’ prior to the Council meeting.

      We know who was instructed to take it down. A good person who is being sat upon by the old boys.

  2. Elizabeth

    In all its complicity:

    DCC staff names removed. -Eds

    Mon, 12 Dec 2016 at 4:07 p.m.

    From: Lee Vandervis
    Date: Monday, 12 December 2016 11:59 am
    To: [Group Manager], “Council 2016-2019 (Elected Members)”
    Cc: [Chief Executive]
    Subject: Re: Embargoed: Deloitte Report


    We have received this ‘earlier’ [about 1 hour] email version now only because I have railed against the plan to have a paper only copy of the 43 page Deloitte DELTA/Aurora review available to us at 12 today, 1 hour before our Council meeting, and because [staff] has scanned a paper copy at my request.
    DCHL provably could easily have sent us an email copy well prior to going to the trouble of printing paper versions to drop on us at the last minute at noon today as they planned.
    The DCHL intention of giving us a paper only copy too late to read it leave alone give it due consideration before our meeting is totally unacceptable to me.


    From: [Group Manager]
    Date: Monday, 12 December 2016 10:22 am
    To: “Council 2016-2019 (Elected Members)”
    Cc: “Executive Leadership Team (ELT)”
    Subject: Embargoed: Deloitte Report


    We have received the Deloitte Report into Aurora/Delta earlier than we had expected. Please find it attached.
    Paper copies are available from [staff] until noon at which point we will have the copies in the Council Chamber as originally planned.

    Note the report is embargoed until after the non-public part of the Council meeting – so around 3pm.

    [Group Manager]

  3. Hype O'Thermia

    Cr Vandervis is clearly p’d off at being given the mushroom treatment – time for only the most superficial look at this report before the meeting.
    Aren’t other councillors similarly insulted at this way of obtaining their rubber stamp of approval to whatever is most convenient for “certain parties”?
    Or don’t they realise how comprehensively they’re being disrespected?

  4. Elizabeth

    Aurora and Delta had been guilty of placing too much emphasis on providing dividends to the council and keeping debt levels under control as opposed to investing in the network. (ODT)

    Mon, 12 Dec 2016
    ODT: Delta, Aurora report calls for major shake-up
    A report on beleaguered Dunedin City Council-owned companies Delta and Aurora has called for a major shake-up to the way the companies are run. The report by consultant Deloitte into accusations Aurora has dangerously mismanaged the power network in Dunedin and Central Otago was released after a non-public debate at the council this afternoon.

    GONE— Dunedin City Holdings Ltd also announced yesterday that Aurora and Delta chairman Dr Ian Parton and fellow board member Stuart McLauchlan had stood down as DCHL and the two companies looked to implement Deloitte’s recommendations.

    The report backed many of the concerns raised by whistleblower Richard Healey and called for the two companies to have separate boards and chief executives. […] The report did not include a detailed investigation of health and safety issues, but said risk had been increased by a lack of investment. Cont/

    Otago Daily Times Published on Dec 11, 2016
    Aurora Energy to implement recommendations of independent review
    A report on beleaguered Dunedin City Council-owned companies Delta and Aurora has called for a major shake-up to the way the companies are run.

  5. Hype O'Thermia

    “The poles network was not as safe as it should be.”
    Cooking was one of Alison Holst’s hobbies.
    The Royal Albatross is quite big, for a bird.
    Our re-elected mayor is the sharpest knife in the underwear drawer.

  6. Elizabeth

    Dunedin City Council – Media Release
    Network review outcome announced

    This item was published on 12 Dec 2016

    Dunedin City Holdings Limited (DCHL) has announced DCHL and Aurora will move towards implementing all of the recommendations in the Deloitte review of the company’s network maintenance processes.

    The key findings and recommendations in Deloitte’s review released today are:

    ● Health and safety systems to be enhanced due to the age of the network.
    ● Aurora and Delta should have different board members with no commonality of directors and separate CEOs.
    ● Creation of competitive tension between Aurora and Delta for provision of services.
    ● Asset management planning needs to have a longer term horizon, ie 30 years.
    ● Investment should be made in an asset management system that focuses on outcomes and performance.

    DCHL Board chair Graham Crombie says in line with the Deloitte recommendation DCHL is committed to the separation of the governance teams of Aurora and Delta and will work with the companies to align this with the organisational separation.

    “Both the boards of DCHL and Aurora accept the findings of the report in full and they have moved already to start to address the matters raised. Some changes will occur short term and others will take longer to further evaluate and implement.”

    The review was implemented when health and safety issues were raised by a former worker.

    The Deloitte review found that the Board and management of Aurora need to adopt a more transparent approach with staff and public in relation to health and safety.

    Both the chair Ian Parton and long term director Stuart McLauchlan have not sought reappointment which has enabled the changes to the Board which include Steve Thompson, a newly appointed director, being appointed Chairman.

    Mr Crombie says Mr Thompson is Dunedin based and that will help to ensure the company’s management has the required support to implement a wide range of changes.

    Mr Thompson was previously a Tax Partner and Office Managing Partner with Deloitte in Dunedin but retired from the partnership in May 2015. He has held a number of governance roles since 1998 covering a range of businesses involved in the energy industry, contracting, property development and investment, manufacturing and professional services.

    In addition Brian Wood (current Director of DCHL) has also been appointed to the board to align DCHL interests and to assist the transition. He has had experience in the civil engineering and energy sectors particularly in lines companies.

    Mr Crombie says these governance changes will ensure the immediate operational enhancements are focused on along with the evaluation and implementation of the structural changes which will allow Aurora to focus solely on asset management.

    “That will include implementing the adjusted pole replacement programme, investing in updated asset management systems and implementing any recommendations from both the pending WorkSafe New Zealand and Commerce Commission reviews. Health and safety of our workers and the public are important to us and we want to regain their confidence that our network is up to standard.”

    Deloitte review report – Aurora Energy and Delta Utilities (PDF, 1.7 MB)
    Review of Aurora Energy Limited/Delta Utility Services Limited – Network Safety Concerns.

    Contact Graham Crombie, DCHL Chair on 0274 363 882.
    DCC Link

    • Hype O'Thermia

      “Mr Thompson was previously a Tax Partner and Office Managing Partner with Deloitte in Dunedin but retired from the partnership in May 2015”
      Eighteen+ months ago. That’s a long time to be “spending time with one’s family”.
      So has he been working in the meantime? Where; for whom?

  7. Elizabeth

    Of course Mr Crombie and the DCHL Board were VERY SLOW to realise there was any sort of problem with their companies Delta Utility Services Ltd and Aurora Energy Ltd.


    Surely Mr Crombie has to go !! …..not parade in the rain by trying to be part of the solution.

    Is Mr Crombie individually liable for NON COMPLIANCE on Health and Safety.

    So many questions.

  8. Elizabeth

    Is Steve Thompson acting as a consultant to Deloitte, on the quiet.

  9. Elizabeth

    He starts in, a satisfying preliminary response to the Deloitte report:

    I never thought that I’d quote Donald J Trump……
    Richard Healey·Monday, 12 December 2016

    Drain the swamp!

    Today the “urgent” report, demanded by the mayor almost two months ago was finally released. Even the press conference was a classic balls up.
    I sat with the media, for more than two hours while debate continued in the council chamber, all of us denied access to the document until moments before the Mayor and the DCHL and Delta Chairmen arrived for questions. A document which had been available on Delta’s intranet for the previous two hours! All parties were available for for less than 20 minutes, maybe 10 minutes of questions on a document that no-one was given the opportunity to read!
    Tomorrow I’ll get into the detail but if anyone thinks that getting rid of the Chairman and Stu McLauchlan will be enough to fix this they are very, very wrong. For now I refer you to page 27 of the report:
    On that page, mention is made of a report commissioned in 2010 by Grady Cameron. If you haven’t yet read this damning report then I suggest you do now…..

    Read the full note with links at

  10. Elizabeth

    Received from Cr Vandervis, on the Deloitte report:

    43 pages.
    More hooks than in a fly fisherman’s workshop

  11. Elizabeth

    ### Monday, December 12, 2016
    Delta/Aurora changes
    Board members of Delta and Aurora Energy met with the Dunedin City Council this afternoon, for what was going to be an hour long meeting. However, it appeared councillors actually wanted to read the 44 page report, which they were not allowed to see before the meeting. Chair Dr Ian Parton has stepped down from the Boards and director Stuart McLauchlan is retiring by rotation, having served three terms.
    Ch39 Link

    Channel 39 Published on Dec 11, 2016

  12. nick

    Congratulations Richard Healey.
    A very brave step you took all those weeks ago, driven by your own view of the appalling culture within Aurora Delta around the safety of their network.
    Your selfless actions are in stark contrast to some of the reactions from those now charged with fixing up this mess.
    Thank you!

  13. nick

    Mr Crombie’s reaction . . .

    “The problems identified in the report were not caused by DCHL putting too much pressure on Aurora for dividends,” he said.

    Then it really does beg the question sir.
    What and who did cause those identified problems?

    Until you get that sorted, what is going to change? – (apart from another set of separate management staff and directors to be well paid, again by ratepayers).

    • Hype O'Thermia

      And where, having NOT been paying to replace poles and other equipment steadily all these years so they didn’t reach dangerous condition, do they keep the savings?
      In a domestic situation failure to repair, replace and re-stock the fridge would suggest either “this family is in poverty, barely surviving” or someone’s got a drink/drug/gambling problem. Or is being blackmailed.

  14. russandbev

    Let us not forget that there are two more inquiries to come and the chances of WorkSafe [Energy Safety] and the Commerce Commission being “influenced” by the GOBs in and around the Tartan Mafia are probably a lot less than what was possible or tried with the DCHL inquiry.

    That said, I’m hoping that there will be a concerted effort to reinstate Mr Healey along with a payment made to him for the disgraceful slurs that were made about his character and motive. Broadly speaking everything he blew the whistle on has proved to be correct. Should not Cull, Crombie and Cameron now be issuing public apologies?

    What does need to happen now is that the DCC clean out DCHL. They after all were overall responsible and accountable for all these cash payments and subvention payments that flowed via DCHL from Aurora/Delta to the DCC for the stadium build or operating costs. Crombie and co went along with all those millions going out of the companies for years. Where did he think the money came from?

    Will apologies be forthcoming? I can’t see it happening, can you?

    • KolA

      “Should not Cull, Crombie and Cameron now be issuing public apologies?”
      I’d rather prefer to see them in jail, assuming damage & neglect was done willfully.

  15. Hype O'Thermia

    “Should not Cull, Crombie and Cameron now be issuing public apologies?’
    Of course they should, and they will.
    As soon as they return from their lengthy fact-finding mission in a bullshit processing facility on Uranus.
    Don’t change your own Christmas and 2017 plans in anticipation of Mea Culpa media coverage, “The Sound of Music” will be repeated as usual on free to air TV.

  16. Calvin Oaten

    So, the Mayor says, “The poles are rotting and need replaced. The death of Mr Steel is due to the lack of maintenance with a replacement programme in place and expedited. It is now up to the management and directors to compensate Mrs Steel for her loss, and for myself to offer an unreserved apology. The Deloitte Report is an unashamed gobsmaking whitewash as apart from the directors reshuffle there is no comment regarding staff, nor an apology or question of reinstatement of Mr Healy. All in all there has been no serious look into the fact that Mr Grady Cameron and his senior staff members have carried out with due diligence their duties overall. There has not been mention made of the ‘subvention’ payments made to the Stadium with the serious dilution of Aurora’s financial situation. The only way to mitigate the situation is that Delta/Aurora should be sold and the problems dealt with by the new owner/operator. The Mayor Dave Cull and Council should be congratulated for taking the axe to the problems and get out of the problems of losing people and money continuously.” Having just woken up from the dream of having thought that I had seen the light, I think that I need a pill. To remove all traces of my temporary outbursts of reason.

  17. Brian Miller

    Calvin. Your suggestion of selling Delta/Aurora does nothing but shift the costs from consumer under public control to consumer under private control. In either case the consmer foots the bill. If this pole disaster happened under private control there would be no public scrutiny as we are having now. Imagine if you can, an overseas company having the ownership of Delta/Aurora. We could see imported steel poles that don’t meet NZ standards being used, and we might never know about it until they on sold the company, took all the profits out of NZ and once again left the consumer to foot the bill. We should be holding those responsible for this mess to account. Strip them of their assets to meet the costs of their neglect. No soft solutions for this one, like selling our assets at a bargain basement price.

  18. Elizabeth

    I agree with Brian’s surmisings. I’m not personally prepared to debate the matter of a sale – not worth discussing while people’s safety and livelihoods are at stake.

    Unfortunately, it seems we may now need to hose out the fresh new round of rorters at director and executive level before we get traction on Safety or Security of supply.

    Now about Grady Cameron. He can’t stay.
    He already looks like death. Why are the GOBs shielding him.

    • Peter

      Elizabeth. You say, ‘Why are the GOBs shielding him.’
      1. Maybe Grady has something on those who would sack him.
      2. Maybe Grady is a good CEO who always does what he is told by the Board.
      3. Maybe Grady, like the other GOBs, loves rugby, getting on the piss etc. They are mates who share everything.
      4. Maybe sacking him admits fault/liability and as we know these people are never wrong…. or liable.

      It is interesting to note how DCC CEO, Sue Bidrose, seems to have become totally invisible. Presumably, she is a superior to Grady Cameron given Grady is a more minor CEO within the wider DCC organisation. She plays no obvious part in dealing with these Delta matters. It is as if she is totally sidelined and ignored by the GOBs and the Mayor. If so, this must be extremely humiliating for her.

      • Elizabeth

        Definitely see your point, Peter. The chief executive was fully present during the Council’s non public section of the meeting yesterday. I doubt going public would enhance her inputs to the situation now the matter is politicised. Early days. Some chess to go.

  19. Calvin Oaten

    I hear what both you Brian and Elizabeth say. First, the matter of overseas money. I agree, but who said it had to be sold to an overseas company? Second, which is easier, send profits overseas or the interest on the massive loans? Third, “Family Silver”, pretty tarnished I’d say Elizabeth. When half at least, not being Dunedin citizens where does the loyalty lie? Finally, CCO companies are not an efficient model by any means as we see. If it was a commercial operation that was run like this then it would have gone bankrupt. That is a fact. And the Stadium would not be in the picture as a major drain.

    • Elizabeth

      I’ve rephrased my last comment because Calvin read it in not a way intended. I can’t agree with Calvin’s thinking, not after exchanges with Mr Healey and others in the industry as well as close observers.

      Some of our best assets include very able and knowledgeable lines staff who are part of our community, for starters. Spitting them out under sale to some low bidder who may replace them with cheap imported labour is not my idea of a good time. Not for any of us if we have any decency.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s