Category Archives: Aurora Energy

Delta #EpicFail and Metiria Turei : How Could This Be?

Received from Christchurch Driver [CD]
Fri, 28 Jul 2017 at 11:44 p.m.

Readers, I can hear the rumblings already – is your correspondent so bereft of new information that he has to tailgate the exploding Turei benefit scandal to catch some attention ? Is this the equivalent of Sérgio Mendes & Brasil ’66, who started well but could only survive by making instrumental covers of Beatles’ hits? (I admit, Day Tripper is a particular favourite…)

Get in behind, readers. Have yourselves a draught of Bells, and let me untangle the web that starts with the inexplicable antics of Ms Turei.

Any sentient citizen must be, by now, aware that Ms Turei attempted to make political capital out of her long term benefit fraud last week to assist in marketing the Green Party’s new welfare policy. Sadly for Ms Turei, a thing called the internet means that her previous fictions about the circumstances around her early solo parent years are all easily discoverable, and the Whale Oil blog has done a telling summary of Ms Turei’s various mendacities. (Thanks Cameron).

Overwhelmingly, the Kiwiblog and other commentariat have excoriated Ms Turei’s inexplicable move, but again, Whale Oil offered the most penetrating analysis (and no, I am not a Whale Oil subscriber, or have ever been in contact with Cameron Slater…). Mr Slater made the interesting points, repeated by Barry Soper and others, that not only was Ms Turei guilty of benefit fraud, but also received a study grant as well. Ms Turei refused to name the father of her baby to WINZ, who has now been subsequently revealed as Paul Hartley, son of Ann Hartley, former Mayor of North Shore. Consequently, no child support has ever been received from Mr Hartley. Ms Turei confirmed that “Grandma” (Ms Hartley) provided support – very likely including financial support, which undoubtedly has not been declared.

One of the unfortunate unintended effects of the whole affair is that this will be red meat to many right wing types of a particular gender and particular demographic to start a predictable chorus of “Welfare Queens” abusing the system. Middle aged guys, this was old (and not true) even when Ronald Reagan used it to get elected in 1980. As noted in the comments below, the amount of white collar fraud that goes unprosecuted is about 30 times the estimated amount of benefit fraud, so to the white collar industries of accounting and law that seek to advise on the fine line between tax “minimisation” and tax “avoidance” : let those without sin cast the first stone.  

While all this is very interesting and will lead to the certain demise of Metiria Turei after the election, if not before as the Green’s poll numbers continue to stagnate or decline, the commentariat has missed the bigger issue which is “What Did The Law Society Know and What Did They Do About It ?”.

Ms Turei initially declined to say if the fraud was disclosed to the Law Society in her 1999 interview to determine if she was “a fit and proper person” to be admitted to the bar, but then decided immediately afterward that refusing to comment would put her on a par with Jonathan Coleman and Todd McLay, so confirmed on July 26 that she had been “upfront” to the Law Society, and there had been a “long conversation” about it.

What is fascinating about this, and an extreme concern for anyone who has had to rely on or transact with lawyers, is that the Law Society, the body tasked with determining who is a fit and proper person to become a lawyer – to uphold the law – then on Ms Turei’s version of events confirmed to Ms Turei that this dishonesty did not matter.  

Readers, I too spilt Bells all over the sofa when I read that the Law Society had known about this for nearly 20 years and been complicit in Ms Turei’s dishonesty. How could it be that the profession dedicated to upholding the law could decide that some didn’t apply to them ? Following on from this if the Law Society did not think it was relevant or significant that a prospective lawyer had engaged in several years’ worth of benefit fraud, then what is the situation regarding her first employer, Simpson Grierson (one of the largest law firms in the country). Either they were lied to about the fraud, or they also had a relaxed attitude towards employing law graduates indulging in benefit fraud.

As we have often remarked in the Delta Epic Fraud series, truth is indeed stranger than fiction, and the facts of the matter are that the Law Society have previously allowed struck-off lawyers with convictions resulting from dishonesty to be reinstated to the bar.

One such lawyer is one Chris Gilbert, upon whom the fortunes of the Christchurch City Council (and indirectly, the DCC), rest in terms of the liability for the Yaldhurst Noble subdivision debacle, in the latest litigation. In reinstating Mr Gilbert to the bar, the Law Society ignored the opposition of three lawyers and two branches of the Law Society, including the Otago branch, who said the gravity of the offending made him unsuitable for reinstatement. Mr Gilbert “misappropriated” $44,000 of client funds in 1987 and 1988. Compounding this, a few years later, Mr Gilbert appeared to think that the Society’s rules were all overrated anyway and proceeded to sign legal documents on the fiction that he was still in fact a lawyer ! Brandishing a wet bus ticket, the Law Society warned Mr Gilbert “there would be no third chances !”.

Readers, like you I regard law firms as a bunch of parasitic sharks, and yes there are plenty of law firms with lawyers you would cross the street to avoid. But Mr Gilbert is not one of those. Mr Gilbert….is the legal services manager at the Christchurch City Council and was offered a job by the CCC with full knowledge of his dishonesty. NZ Herald (2004)

Readers, two hands on the cup : The Christchurch City Council actually said that Mr Gilbert “was the best candidate for the job”. This was rather against the advice of the Waikato Law Society, where Mr Gilbert committed his first fraud: they said in an affidavit Mr Gilbert was not a “fit and proper person” to be a lawyer.

Now place the cup down – you won’t cope with this : The Law Society gave Mr Gilbert his “third chance” on the basis that he could only work for the CCC. In other words, he wasn’t allowed to act for private individuals who had the choice to take or leave his services and make complaints if warranted. Instead he could be responsible for issues involving huge amounts of ratepayer funds, because the Law Society appeared to think that position required a much lower standard of integrity.

Readers, why would the Christchurch City Council employ Mr Gilbert ? Readers, feel free to draw your own conclusions. The most incredible fact of this rather incredible tale is that Mr Gilbert was no short-term stopgap to tide the CCC over a tight staffing spot. Mr Gilbert has been the team leader of legal services at CCC for 13 years. He seems to be part of the institutional furniture, and appears to be indispensable.

Your correspondent is advised that in relation to the Noble Yaldhurst litigation, Mr Gilbert is not surprising the plaintiffs with bursts of even-handedness.  

This perhaps is one reason why the pace of the Christchurch rebuild is glacial – Minister Brownlee and the Government would be fully justified in having serious reservations about the competence of the Christchurch City Council, and not just in the building control division.

Readers, tonight’s conclusion is surprising – we as Dunedin ratepayers can look with relief at Mr Gilbert and know that within the DCC itself (although NOT Delta and Aurora) this would never occur under the present management.

[ends]  

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Welfare fraud targeted more than tax evasion
White collar criminals get a better deal than welfare fraudsters because the system is biased before they even get to the courts, a lawyer says. Research by Victoria University shows 10 times more welfare fraudsters were prosecuted than tax evaders even though tax evasion costs the economy 33 times more. The research shows tax evasion amounts to at least $1 billion a year compared with $30 million for welfare fraud, but the courts are much harsher in their treatment of welfare fraudsters. RNZ News (2016)

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Posted by Elizabeth Kerr

This post is offered in the public interest.

 

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26 Comments

Filed under Aurora Energy, Business, Commerce Commission, Construction, DCHL, Delta, Democracy, Economics, Finance, Hot air, Housing, Infrastructure, Media, Name, New Zealand, OAG, Ombudsman, People, Perversion, Politics, Project management, Property, Public interest, Resource management, SFO, Town planning, Transportation, Travesty

Rainy Day reading —The Spinoff : Ministry of Transport fraud case

The ever-deepening storm centred on the Joanne Harrison fraud case just became a hurricane. Yesterday’s State Services Commission investigation report is likely to trigger a new chain of events that could extend well beyond embattled Auditor General Martin Matthews, writes Peter Newport

### thespinoff.co.nz July 21, 2017
Politics
The Ministry of Transport fraud case: Why the rot goes deeper than Joanne Harrison
By Peter Newport | Contributing writer
The State Services Commission investigation, published yesterday, makes one thing very clear: Joanne Harrison influenced the exit of four fellow Ministry of Transport employees who tried to tell their bosses that she was a fraudster. She managed to hire friends and steal over $700,000 from the ministry despite numerous staff attempting to call attention to her actions. This all happened while she was reporting directly to then-chief executive Martin Matthews, who is now our auditor general – albeit on temporary leave. The Commission has now apologised and is offering compensation to those former staff members. Its report also highlights many other issues at the Ministry, arguing that the 17-year-old legislation that covers whistleblowers needs to be changed and improved.

A second investigation, into whether Martin Matthews is a suitable person to continue as auditor general, is due from Sir Maarten Wevers in the coming days. Matthews is currently constructing his response to the unpublished, but complete, Wevers investigation. He has been given until the end of this week to complete it.

The Harrison case has some similar dynamics to the Todd Barclay drama. It’s become less about the initial problem than how it was handled. Who told the truth and who tried to obscure or even bury the truth. The difference with the Harrison situation is that she is now in jail and the truth is coming out – fast.

The Spinoff has been looking at exactly who did what, and when. That job has been made easier by a new, recent MOT whistle-blower who has produced and provided to us a detailed timeline noting all the evidence, which we publish here, utilising material released by the Ministry of Transport and available to view here. The same whistle-blower has shared a bizarre insight into Martin Matthews’ statements during his time at the Ministry of Transport.

But first, a quick tour of the jigsaw puzzle of documents that reveal a picture of Martin Matthews being given not clues, or hints, but what appear to be multiple solid facts that highlighted Joanne Harrison as a Grade A con artist and thief.
Read more

Founded in 2014, The Spinoff is New Zealand’s fastest growing media startup, amassing a monthly New Zealand audience of over 500,000 in less than three years.
We’ve assembled a team of agenda-setting journalists and critics, working across text, audio and video to create a true 21st century media brand. In just two years, The Spinoff has been nominated for 24 Canon awards, winning six. Our growth has been driven by a creative editorial style and innovative business model, emphasising long-term relationships with like-minded brands and a close connection with a young, educated and urban audience. Duncan Greive won both NZ Marketing Magazine‘s Editor of the Year as well as the People’s Choice title for Editor and Media Visionary in their media issue, July 2017. The Spinoff also claimed the title for Digital Media Brand of the Year as well as the People’s Choice title for the same award.

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Comment received from russandbev
2017/07/21 at 10:52 am

The recent revelations about what happened to the whistleblowers in the Ministry of Transport have, I’d suggest, application in Dunedin. Think of the parallels. In the MoT case a manipulative person with a barely-hidden track record of fraud and vindictiveness as well as a well developed sense of entitlement goes about systematically defrauding a government department of close on 3/4 million dollars. Not through some incredibly complex fraud, but one of simply creating business that didn’t exist and creating invoices from them for services that were never provided. Not exactly something that would take a lot to investigate.

Whistleblowers blow the alarm whistles to their managers and nothing happens and the further up the chain the questions were asked, the more dismissive the denials became. Meantime the fraudster moves against the whistleblowers. The Head of the Ministry moves on to even more wondrous things as Auditor General (is that ironic or is that ironic?) and the Minister dismisses all suggestions of wrong-doing. Even the Speaker of the House who employs the Auditor General doesn’t want to get involved.

Now found that the whistleblowers were entirely vindicated by their concerns and they get private and public apologies and a confidential settlement to, in part, recompense them for their treatment by both a fraudster and by management and governance failures. The Protected Disclosures Act [2000] is supposed to protect whistleblowers in BOTH public and private sectors.

Now, I don’t think anyone is suggesting fraud in the case of Aurora/Delta and that should be made plain. However look at the track record of these companies. A fearful record of stupid property speculation costing many many millions which is still going on thanks to Yaldhurst. A willingness to go along with borrowing to supply dividends to the DCHL and the DCC. Decades of ignoring maintenance on the Aurora network closely linked to the governance requirements to minimise costs, maximise profits and supply dividends to build vanity projects by the owners and now the spendup of northwards of 3/4 billion dollars on urgent maintenance bought about these years of neglect.

And then think of the years and layers of denials that these things happened over. When Richard Healey found he could no longer keep working in the company because of all that was being hidden, he gets vilified by EVERYONE that should have listened. EVERYONE is in denial including his past Managers who continued to receive their grossly inflated salaries and those in governance – many of whom refused to even sit down with him and discuss his concerns.

Am I the only one to see the parallels in how a Ministry or a City company deals with whistleblowers? I wonder if we will ever see similar end results in the case of Richard Healey?

{Link added. -Eds}

Reply from Elizabeth
2017/07/21 at 1:02 pm

Not involving Aurora:

Charges of Constructive Fraud have been brought, by joinder, against Delta Utility Services Ltd in the Christchurch High Court by the caveators (original property owners of the Noble Subdivision) at Yaldhurst. The case proceeds.

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Transparency International New Zealand
http://www.transparency.org.nz/

Related Posts and Comments:
19.7.17 Southern Police : Nothing changed since Tom Lewis wrote Coverups & Copouts
18.7.17 Delta | Infinity | CCC staff collude to defeat Yaldhurst residents (again)
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22.2.17 Some Councils/CCOs get cleanup from FRAUD and CORRUPTION #NotAll
9.12.16 Auckland corruption charges proved —ring any bells? #South
28.1.16 New Zealand local government T-shirt #haze #corruption
20.9.15 Corruption serious threat to New Zealand #CAANZ
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13.5.14 Stuff: Colin Espiner usefully defines Corruption

Posted by Elizabeth Kerr

This post is offered in the public interest.

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Filed under Aurora Energy, Business, Commerce Commission, Construction, Corruption, Crime, Delta, Democracy, Dunedin, Economics, Education, Finance, Hot air, Housing, Infrastructure, Media, Name, New Zealand, OAG, Ombudsman, People, Perversion, Police, Politics, Project management, Property, Public interest, SFO, Transportation, Travesty, What stadium

Aurora Energy struggles to proofread #FastTrackPoleProgramme

At Facebook:

The ‘free’ publication didn’t arrive in letter boxes at lower Pitt St, Dunedin – some householders receive official mail through post slots in their front doors. Don’t tell me the mail distributors for Aurora – god, like Allied Press – refuse to deliver to door slots off the street (in clear safe public view) due to [their] perceived Health and Safety risks…. greater than dangerous poles ? [Unlike NZ Post, DX Mail and other Couriers who provide efficient direct service.]

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[Old stats, who would guess Aurora’s in such a financial and corporate mess?]

Aurora Energy is an electricity distribution company in Otago, New Zealand. Aurora Energy is owned by Dunedin City Holdings Limited on behalf on the Dunedin City Council. Aurora Energy is New Zealand’s sixth largest electricity distributor. Wikipedia

Formerly called: Dunedin Electricity Limited (1990-2003)
Industry: Energy
Predecessor: Waipori Falls Hydroelectric Company Ltd
Founded: June 26, 1990 in Dunedin, New Zealand
Headquarters: Dunedin, New Zealand
Key people:
– Grady Cameron (CEO)
– Stephen Thompson (Chairman) [previously, Ian Parton]
Revenue: $99.5 Million USD (2015)
Net income: $8.1 Million USD (2015)
Total assets: $413.9 Million USD
Total equity: $182.55 Million USD (2015)
Owner: Dunedin City Council
Parent organisation: Dunedin City Holdings Limited

Website: http://www.auroraenergy.co.nz/
Fast Track: http://www.auroraenergy.co.nz/about/major-projects/current-projects/fasttrack/

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Helterskelter Delta, solidly joined at Aurora’ hip, writes an open letter at page 3 of today’s ODT:

[click to enlarge]

Posted by Elizabeth Kerr

This post is offered in the public interest.

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Aurora/Delta new directors

Dunedin City Council – Media Release
New directors appointed for Aurora and Delta boards

This item was published on 03 Jul 2017

Dunedin City Holdings Limited (DCHL) has appointed three new directors within its group as part of changes to the Aurora Energy and Delta Utility Services companies which take effect from today, Monday, 3 July. DCHL Board chair Graham Crombie says that Margaret Devlin and Brenden Hall have been appointed to the Aurora Board, while Steven Grave has been appointed to the Delta Board.

“There was strong interest in these vacancies, with a total of 80 applications received from throughout New Zealand and overseas. I’m delighted that we’ve been able to appoint three talented and experienced people to these roles.”

Mr Crombie says the board appointments have been made as a result of DCHL implementing one of the key recommendations from a Deloitte review of the companies’ network maintenance processes late last year. Deloitte recommended that Aurora and Delta should have different board members with no commonality of directors. As previously announced, current board members Steve Thompson and Dave Frow remain on the Aurora board only, with Mr Thompson as chair. Brian Wood and Trevor Kempton will remain on the Delta board only, with Mr Wood as transition chair. “The changes will see the companies fully separate with Aurora being the asset owning and management company, while Delta will revert to a contracting company. The skills required in each company from a governance perspective are different,” he says. “However, it is important that some continuity is maintained within the governance structures. The decision was therefore made early on to have two of the current directors move to each new board.” DCHL expects to make an appointment to fill the one remaining director vacancy on the Delta Board, within the coming weeks.

Director fees totalling $220,500 for Aurora and $204,000 for Delta, as recommended by an independent review by the Institute of Directors were approved by DCHL and endorsed by the Council. These fees compare to the current total fees for the combined companies of $258,250.

Contact DCHL Chair on 034774000 | Mobile: 0274363882
DCC Link

Media release – New directors appointed for Aurora and Delta boards
(PDF, 54.1 KB)

The A/D directors forever joined at the hip think they can tough it out by collecting fees.

Both the non-retiring and the newbies appear grey around the gills, deadhead controlling and incapable of clean governance.

Larks, it appears Mr Crombie is staying on at DCHL. Not enough lawn mowing at Clyde to wobble his wattles.

Posted by Elizabeth Kerr

This post is offered in the public interest.

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Filed under Aurora Energy, Business, Commerce Commission, DCC, DCHL, Delta, Dunedin, Economics, Education, Electricity, Finance, Geography, Health & Safety, Hot air, Infrastructure, LTP/AP, Name, New Zealand, OAG, Ombudsman, People, Politics, Project management, Public interest, Queenstown Lakes, Technology, Tourism, Town planning, Travesty, Urban design, What stadium

LGNZ, don’t wish ‘his lordship’ on New Zealand #VoteRachelReese

[anonymous]

Local Government New Zealand chief executive Malcolm Alexander said there was no job description for the role of president. “It’s a governance role, chief representative and chief media spokesperson for the organisation.”

What has Mr Mayor achieved for South Dunedin following DCC’s mudtank/pump station fiasco – see 3 June 2015 FLOOD and his holus-bolus media pronouncements upon the Community of South Dunedin, their property assets and livelihoods. A brand new ratepayer-owned 2016 Hyundai Santa Fe was written off in a mysteriously “unreported” serious injury crash in the 2016/17 holiday period. His council is costing Dunedin ratepayers $20M+ pa to make the underutilised loss-making rugby stadium “work” (capital debt repayments and operational subsidies, see Intergenerational Debt). Continues major DCC spending spree on ‘nice to haves’ before addressing serious underspend on basic infrastructure (water and waste, roading). Without public explanation or consultation, presides over $100M being added to council group debt, as signaled in DCC’s LTP/Annual Plan 2017/18 projections. No prosecutions taken for the loss of 152+ DCC owned vehicles: Citifleet! Refuses to address council owned Aurora Energy’s programmed neglect of Otago’s power network, under the concerned regulatory eye of NZ Commerce Commission. Cr Vandervis was called a liar in public on three media-recorded occasions. Claims (media outburst) he is responsible for Jim O’Malley’s campaign to save the Dunedin Cadbury Factory. On it goes. —Meet bob the builder.

Nelson Mayor Rachel Reese said in a letter to councils around the country she was nominated by Wellington Mayor Justin Lester and Matamata-Piako Mayor Jan Barnes.

### ODT Online Sat, 1 Jul 2017
Cull seeks LGNZ president role
By David Loughrey
Dunedin Mayor Dave Cull is in the running to become the next president of Local Government New Zealand (LGNZ). Mr Cull’s only competitor for the role is Nelson Mayor Rachel Reese. The news of his bid came in a letter to the Otago Regional Council in which he asked for support. A letter from Ms Reese also appears in the council’s agenda, laying out her ambitions for the role. ORC chairman Stephen Woodhead said this week  he expected the council would give its vote to Mr Cull. LGNZ represents the national interests of councils in New Zealand. The organisation provides its members with advocacy and policy services, business support, advice and training. An LGNZ spokesman said an election would be held at the LGNZ general meeting on July 25, after an annual conference in Auckland, where the two mayors could present their cases.
Read more

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Source: ORC Agenda 20 Jun 2017 [screenshots – click to enlarge]

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A pre-trial hearing for the defamation case brought by Cr Lee Vandervis against Mayor Dave Cull was held in June. This involved setting of indemnity costs (a not insignificant sum) before the case may proceed to a judge-alone trial. Not a jury trial.

What does this mean?
In a trial by judge-alone, the judge takes on the role of “fact-finder” (determining admissibility of evidence pre-trial). All the evidence is presented to the sitting judge and he or she is responsible for determining the facts and delivering the verdict. In a judge-alone trial the court is required to give reasons for its decision.

In a jury trial, the jury is the fact-finder – that is, the jury is responsible for determining the relevant facts of the case and applying the law to reach a verdict of guilty or not guilty. The jury may be discharged from giving a verdict if it cannot agree. The role of the judge is to oversee and control the conduct of the trial in a general way. A jury is not required to and does not give reasons for its verdict.

Indemnity costs, at the discretion of the Court, are a complete reimbursement of all legal costs incurred. In general civil proceedings, indemnity costs are reserved for cases where a party has acted frivolously or improperly in the conduct of the proceedings….a very high threshold only satisfied in truly exceptional cases. [Sometimes the contract between the litigating parties over which they are arguing, will itself provide for indemnity costs.]

In hushed local terms, the ‘costs’ has meant some unrest between backers and their ‘party’.

Posted by Elizabeth Kerr

This post is offered in the public interest.

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Filed under Aurora Energy, Business, Commerce Commission, DCC, Delta, Democracy, Dunedin, Economics, Electricity, Finance, Geography, Hot air, LGNZ, LTP/AP, Media, New Zealand, OAG, Ombudsman, People, Pet projects, Politics, Public interest, South Dunedin, Travesty, What stadium

Dunedin’s winter power bills —ODT calls for comment at Facebook

Read the many public comments received at the ODT Facebook page.
Are the higher bills because of the crisp weather ? Low levels of the hydro lakes ?
Or something more ‘sinister’ ?

What is the industry regulator, the Commerce Commission, saying.

Personal Aside:
I don’t heat my apartment – chosen because it’s constructed in brick, elevated, insulated, sunny and warm. Before you ask, I pay high market rent to live centrally. I’m a registered low user of power, receive 20% earlybird discounts, and enjoy guaranteed fixed rates on power charges for 12 months by agreement with my electricity supplier. Typically, my power use is constant across the seasons and the years (long-term renter at this address, 2003 to present). I can keep my power use low only because I have good health, lots of warm clothing and furnishings, and I stay active. I’m expecting huge price increases as Dunedin City Council owned Aurora Energy’s programmed neglect of the Otago power network really kicks in.

Posted by Elizabeth Kerr

This post is offered in the public interest.

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Site Notice : post(s) removal

Late this afternoon, Chapman Tripp, the commercial law firm, acting on behalf of their client Stephen Richard Thompson, requested the removal of two posts from the What if? Dunedin website.

Both posts have been removed.

The website owner unreservedly apologises to Mr Thompson for publication of this material in previous weeks.

An apology with account of steps taken to remove the material will be forwarded to Mr Thompson via the solicitors.

Elizabeth Kerr
Site Owner

Posted by Elizabeth Kerr

The What if? Dunedin website https://dunedinstadium.wordpress.com/ is a blog about the social and built environment of Dunedin New Zealand.

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Filed under Aurora Energy, Electricity, Infrastructure