Tag Archives: Audit New Zealand

DCC not Delta #EpicFail : Wall Street falsehoods and a world class debt

Received from Christchurch Driver [CD]
Tue, 14 Feb 2017 at 9:16 a.m.

Readers 

We are at an interesting time in our local history. Your correspondent like hundreds of others was busy cleaning up yesterday, after what NIWA described as a fairly standard thunderstorm where just 13.6mm of rain fell. 

Also like hundreds of others no doubt, the question in the mind of your correspondent as he dutifully mopped, was : What is the next public asset to be exposed as poorly run, badly maintained and starved of funds ? 

Never before have the executive few lied so comprehensively about the true state of so much degraded public asset. Never before has so much public asset been destroyed by the actions of those few, as Winston might have said. 

Economists your correspondent is familiar with would call this the “tragedy of the commons”. We await the “macro-prudential” responses from Central Government. With the stupefying level of underfunding for DCC drainage and other underground services identified by the Auditor-General, coupled with Aurora Energy’s $1B deferred maintenance and capital work, plus the existing DCC debt, there is around $3B that will need to be extracted from ratepayers and power consumers over the next 30 years (see the Dunedin City Council Infrastructure Strategy). Dunedin has achieved its dream as a world leading small city – of debt per ratepayer. Dunedin will be broke beyond comprehension with the policy of 3% annual rises. The 3% limit is a mirage. Rate rises will be much, much more. Not this year, but quite possibly before the next election; if this council does not address the looming crisis there is the increasing possibility of the removal of the council and appointment of a commissioner. 

It seems that every week brings some fresh disaster or new development that the DCC attempts to cover up. 

Yesterday was a small but telling episode. David Loughrey of the Otago Daily Times kindly confirmed what your correspondent mentioned some months ago, that the DCC had terminated the services of Logic FM because the company would not look the other way while the DCC wilfully failed to fix hundreds of obvious fire rating defects at two of their major assets. 

Mr Kevin Taylor wrote that the council [fired] Logic because the company had been “interpreting code compliance…..beyond that required by the law”. Logic publicly scoffed at this saying – correctly – that the code is “relatively black and white”. 

What actually happened is that as well as the uncompleted fire penetrations, there is a case of simple DCC incompetence, which was only hinted at by infrastructure networks general manager Ruth Stokes in the ODT article. Here are the facts : The Wall Street mall required daily inspections of certain of its building safety systems. The DCC did not want to pay outside consultants to do this work. Fair enough, said Logic, we will train your staff to inspect the systems and they will then sign off a daily inspection sheet, which Logic as the IQP (Independent Qualified Person) need to sight every month. 

wall-street-mall-interior-teamarchitects-co-nz[teamarchitects.co.nz]wall-street-mall-logo-1wall-street-mall-exterior-wallstreetmall-nz-1

Month after month, the monthly reports could not be signed off because no one had completed the daily sign-off sheets. There were offers of more training to the apparently mule-like staff responsible but City Property could not be bothered to do it properly —and thought they could get away with not doing these daily inspections by appointing another more compliant IQP in-house and seeking cover with a further fire report by Beca. 

It is very relevant that after sacking Logic FM, and commissioning the report from Beca, DCC refused to provide a copy of the Beca report to Logic. Logic had asked repeatedly for the report to see what the alleged areas of “over compliance” were. 

It is ‘madeira cake to margarine sandwiches’ that there were no areas of over compliance, and but for Elizabeth Kerr’s LGOIMA request and latterly, the ODT, City Property may well have gotten away with inaccuracies! 

As it is, your correspondent sees only static for Mr Taylor in the DCC crystal ball. He is merely the latest in a line of unlamented DCC property managers, including Robert “Hydraulic” Clark, and Dave McKenzie.

Ruth Stokes also needs to very careful about stepping into this mess – and dissembling to protect Mr Taylor. Stating that “things could have gone a bit better, but they’ve all been addressed” does not fool anyone. Mr Taylor may have have fantasised to Ms Stokes that “all” the fire rating faults were fixed but remember your correspondent advised there were hundreds of faults, not just a few faults in one single wall as has been pretended. There is no way all the faults have been fixed. 

This is what Richard Healey would describe as the Delta dishonest reduction defence…. no, not a 1000 dangerous poles without red tags, but perhaps there are just a few…. and now we learn on that fiasco, that the ‘new’ Delta plan, unannounced to the region’s mayors, is that they can be magically restored to full strength by yet another re-classification.

Chief executive Sue Bidrose started her tenure with a promise of greater transparency and openness (read “honesty”) that was sorely needed. There was some early progress, but the transparency project appears a priority no more.

With the financial storm clouds assembling over the DCC that the chief executive cannot fail to be aware of, some honesty about the actual costs the DCC faces over the next decade is needed. It ranges from the small – just how much will it take to fix Wall Street mall to the $1B existential Aurora problem. The CEO and her staff have been invisible on this critical issue, instead producing reports of risible fantasy such as last year’s effort that valued Delta at over $50M, and Aurora at over $200M. Facing up to an austere decade is the only way that Dr Bidrose and Councillors will avoid having their careers and reputations destroyed by the appointment of a commissioner. 

[ends]

Council Documents:
DCC Infrastructure Strategy
DCC Long Term Plan 2015/16 – 2024/25
Audit Opinion – Independent auditor’s report on Dunedin City Council’s 2015-25 Long‑Term Plan. Author: Ian Lothian, Audit New Zealand on behalf of the Auditor‑General, Dunedin NZ.

ODT Stories:
14.2.17 Councils, Aurora poles apart on ‘removing risk’ definition
13.2.17 Without warrants for years
11.2.17 Aurora affected by pole, staff shortages
8.2.17 Action by Delta decried
29.12.16 Director for $30m pole project
2.12.16 Resignation blow to pole work

Related Posts and Comments:
22.1.17 DCC LGOIMA Response : Wall Street Mall and Town Hall Complex
30.11.16 Delta #EpicPowerFail 7 : Kyle Cameron —The Money or the Bag?

█ For more, enter the terms *delta*, *aurora*, *grady*, *wall street mall*, *richard healey*, *steve thompson*, *dchl*, *epicfail*, *epicpowerfail* or *epic fraud* in the search box at right.

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Images by Parker Warburton Team Architects

17 Comments

Filed under Aurora Energy, Business, Central Otago, Construction, DCC, Delta, Democracy, Design, Dunedin, Economics, Education, Electricity, Events, Finance, Geography, Health, Infrastructure, LTP/AP, Media, Name, New Zealand, OAG, Ombudsman, People, Perversion, Politics, Project management, Property, Public interest, Queenstown Lakes, Resource management, Site, Structural engineering, Travesty, What stadium

Audit NZ admonishes commissioner Grant and SDHB #Health

kathy-grant-govt-nz-bw[govt.nz]

“By not declaring all interests, particularly the pecuniary interests, exposes the DHB to an increase in conflict of interest risk and potential for reputational damage.” –Report, Audit New Zealand

The auditors were also disappointed at a lack of progress in other areas. There were no up-to-date disaster recovery plans, a shortcoming identified previously. (ODT)

### ODT Online Mon, 9 Jan 2017
SDHB rapped over non-disclosures
By Eileen Goodwin
Audit New Zealand has told the Southern District Health Board to sharpen up its act on financial  disclosures after finding some interests had not been declared. Commissioner Kathy Grant made new declarations after the issue was raised by auditors, she confirmed to the Otago Daily Times. Mrs Grant had not realised they had to be declared.
….In its 2015-16 audit, Audit New Zealand recommended the DHB implement regular checks of the New Zealand companies office register to check for non-disclosures.
….The auditors said the DHB’s “key challenge” was maintaining sustainable services while trying to improve its financial position.
Read more

Kathy Grant is a consultant at Dunedin law firm Gallaway Cook Allan.

****

Southern District Health Board
End of year update on the Dunedin Hospital redevelopment project

Wednesday, 14 December 2016
The Southern Partnership Group (SPG) is pleased with progress towards having an Indicative Business Case, with a shortlist of options for the redevelopment of Dunedin Hospital, completed by mid-next year. “Despite the ambitious timeframe, we’ve met our deadline to workshop the longlist of options by Christmas and are on track to have that narrowed down to a shortlist by mid next year,” SPG Chair Andrew Blair says. “The longlist options range on a spectrum from replacing the Clinical Services Building and refurbishing or replacing the Ward Block, to moving all hospital facilities to an entirely new hospital campus either nearby or somewhere else in Dunedin City….”
Read more

SDHB Annual Report 2016

Audit NZ 2015-16 Management Report

Posted by Elizabeth Kerr

This post is offered in the public interest.

21 Comments

Filed under Business, Democracy, Dunedin, Economics, Finance, Health, Infrastructure, Media, Name, New Zealand, OAG, Ombudsman, People, Politics, Project management, Property, Public interest, SDHB, Travesty

The Demon Duck freak show of partial ‘Civic’ information! Before voting closes! #Dunedin

bugs-bunny-and-daffy-duck-the-looney-tunes-show-via-thepinksmoke-com-1

Two instances in two days [Voting closes on Saturday 8 October] of partial information. Really, this means NO INFORMATION at all. Or at best something Tall, the Recipe for FURTHER IRRITATION. Said Ratepayers who’ve seen quite enough of Cull Council fluff.

Be quite sure of that. The future is cracked quacked.

daffy-duck-future-gaze-the-looney-tunes-show-via-fanpop-com

No. 1
Yesterday, Dunedin City Holdings Ltd (DCHL) failed to present its Audit Report to the last sitting of the Cull Council. NO AUDIT REPORT. Is there an Audit Report or not, they asked, or is this a process blip with everything under ‘good’ control. Well, some forms of control are the hedge to unwelcome news —before it comes! Again, WHY is the DCHL Audit Report (because it most certainly exists in some form or other) late ENOUGH, TO MISS tabling at Council BEFORE the elections.

THE ELECTIONS. Leaving the new Council to deal to BAD SCRATCHY items from Crombie’s Cookie Jar, about the Gremlins and Duck Itch within, and indeed, the pending wrath of Audit New Zealand (A Gain again!) and Dunedin Ratepayers (A Gain again!).

Was it that the stadium company, one in particular, could upset Ratepayers before they vote. Just one amongst the growing frequency and severity of storms over South Dunedin. DCHL, the ONE STORM too many.

No. 2
A sort of desperate hotel proposal for the Council-owned Filleul St car park. An election freebie in message, carpet fibre thrown over an unravelling pongy DEAD DUCK (political massage). The accommodation market is trending nationally and internationally to Boutique hotels not a CLUNKER. Five star in the New Zealand visitor markets no longer looks or smells this way. [see ODT horreur graphic —So yesterday’s two star, they said]

daffy-duck-the-looney-tunes-show-via-toonbarn-com-1

Let’s hope Chris Morris is asking the owners of Kingsgate Hotel Dunedin, Distinction Dunedin Hotel and the Scenic Circle hotels what they’re thinking about DCC’s plans, and the offer of friable ‘red carpet’ to a private hotel operator who plans a bulwark. Which it’s thought will FALL OVER. The MOU between the Council and the developer has been about a while – we wondered when this glorious axe axiom of accommodation might sling into sight for the central city.

THE ELECTIONS. So Mr Cull’s publicity machine for re-election has left the room at South Dunedin and DUCK SHOVED bang up close to the Dunedin Town Hall, Public Library and Civic Centre – like Real Business is going on. Let’s hasten to suppose Enterprise Dunedin is to thank for all this in some small way.

worried-daffy-duck-giphy-comWaiting for the final Vote Count (“no stars”)

“JUST TO HAND”
█ Released via LGOIMA:

19 September 2016
EXTRACT FROM THE NON-PUBLIC MINUTES OF THE COUNCIL MEETING HELD ON 19 SEPTEMBER 2016

C5 PROPOSED DEVELOPMENT OF DCC OWNED CENTRAL CITY SITE

A report from Management and Enterprise Dunedin sought approval for an exclusive six month due diligence period to NZ Horizon Hospitality Group Limited (NZH) for the sale of the Council owned property on the corner of Moray Place and Filleul Street. As part of the due diligence, Council would undertake geotechnical investigations, estimated at $100,000, and provide this to NZH.

NZH was proposing to develop part of the site as a five star hotel, with purchase of the land conditional on development contribution relief of up to $1 million. The purchase would be at market value and require development within a specified timeframe.

There would be no obligation on Council to enter into a sale and purchase agreement for the site either during or after the exclusive period.

The Chief Executive Officer and staff responded to questions from Councillors.

Moved (Cr Chris Staynes/Cr Andrew Noone):

That the Council:

a) Approves a Memorandum of Understanding with NZ Horizon Hospitality Group Limited for a three month exclusive due diligence period for the purposes of determining the viability of a five star hotel development on the property on the corner of Moray Place and Filleul Street.

b) Notes under the Memorandum of Understanding:
a. Council agrees to:
i. Not enter into any discussions or negotiations with any other party other than NZ Horizon Hospitality Group relating to the sale and purchase of the property.
ii. Undertake geotechnical investigations required that will be provided to the NZ Hospitality Group.
b. NZ Hospitality Group agrees to:
i. Undertake due diligence relating to the purchase of the property at Moray Place and Filleul for the development of a five star hotel.

c) Notes that should the due diligence confirm the viability of the proposed five star hotel development, Council and NZ Horizon Hospitality Group Limited may negotiate a sale and purchase agreement conditional on:
a. The sale of the land at market value; and
b. Up to $1 million in development contributions relief; and
c. Development timeframes; and
d. Full Council approval.

d) Delegates the Chief Executive Officer as the Council’s spokesperson for the purposes of any media about the due diligence process.

e) Notes that the approval of the Memorandum of Understanding is not to be taken as any predetermined Council position on any future sale and purchase, or conditions in a sale and purchase agreement, and specifically that Council has yet to consider any development contributions remission and would do against the Development Contributions Policy should a sale and purchase agreement be pursued.

f) Directs that staff use the three month exclusive period to examine other uses and options for the site, in the context of the city’s Strategic Framework and Central City Plan, and that they be put to the Council at the same time as they consider any sale and purchase agreement from the developer.

Division
Voting was carried out by division.

For: Crs Dave Cull, Chris Staynes, David Benson-Pope, Doug Hall, Aaron Hawkins, Mike Lord, Jinty MacTavish, Andrew Noone, Neville Peat, Lee Vandervis, Andrew Whiley and Kate Wilson (12).

Against: Nil

The division was declared CARRIED by 12 votes to 0.

Motion carried (CNL/2016/134)

Posted by Elizabeth Kerr

Election Year. This post is offered in the public interest.

*Images: With thanks to Daffy Duck from The Looney Tunes Show via (from top) thepinksmoke.com, fanpop.com, toonbarn.com and giphy.com

30 Comments

Filed under Baloney, Business, Democracy, District Plan, Dunedin, Economics, Finance, Geography, Heritage, Hot air, Media, New Zealand, OAG, People, Perversion, Politics, Property, Proposed 2GP, Public interest, Site, Tourism, Town planning, Travesty, What stadium

DCC LTAP 2016/17 budget discussion #ultrahelpfulhints

ODT 19.1.16 (page 6)

ODT 19.1.16 To the point McCutcheon p6 FrameScrollCornerJPRfinished red

Comment at ODT Online:

Still on about ‘rising ground water’
Submitted by flatout on Thu, 21/01/2016 – 8:05am.

When will you…Dave…and the council admit it was a lack of mainenance that caused the flooding in Dunedin? Stop blaming climate change and rising ground water. Stop talking about high cost plans of moving South Dunedin and buying properties. Stop your endless council staff meetings about the issue of ‘what to do with South Dunedin’. Do maintenance on the stormwater. Do invest in South Dunedin to keep it a place to live and work in. All you need to do is clear drains and stormwater system that has coped with worse floods in the past…1968 for example.

REMOVE THE IRRITANT
Dave framed [FrameScrollCornerJPRfinished] 2

Posted by Elizabeth Kerr

62 Comments

Filed under Business, Cycle network, DCC, Delta, Democracy, Dunedin, DVML, Economics, Enterprise Dunedin, Infrastructure, Media, Name, New Zealand, OAG, People, Pet projects, Politics, Project management, Property, Proposed 2GP, Resource management, Tourism, Town planning, Transportation, Urban design, What stadium

DCC AMAZE —oh, more fraud

DCC logo (fraud) 2

DCC CULTURE OF ENTITLEMENT
‘Enormously disappointing’ —And Enormously Expected.
‘ONE MAN’ did it. An outright fairytale.
DOLLY didn’t, either. More to come !!

### ODT Online Mon, 10 Aug 2015
Further cases of fraud at council
By Chris Morris
The Dunedin City Council says the discovery of five more examples of fraud and theft inside the organisation is “enormously” disappointing. […] Details of the smaller incidents emerged last week, in response to Otago Daily Times questions, a year after the discovery of the Citifleet fraud.
Read more

█ ODT blocks public comments to this item.

ODT 10.8.15 [Source: DCC]

ODT 10.8.15 Further cases of fraud at council p1[screenshot]

Related Posts and Comments:
7.8.15 MOU DCC and TCFT New Aquatic Facility #MosgielPool
4.8.15 Hundreds of DCC Staff receive fraud detection/prevention training
28.7.15 DCC tender fraud includes Citifleet —not for discussion
23.7.15 Publicise: laudafinem.com
207.15 Noble property subdivision —DELTA #LGOIMA
13.7.15 Jeff Dickie: Edinburgh tough, Dunedin (DUD)
4.7.15 DCC Citifleet, [a] Deloitte report leaked
25.6.15 DCC Citifleet COVERUP #screwy
17.6.15 Citifleet: ‘Checkpoint’ interviews Dave Cull
4.5.15 Cr Lee Vandervis: Why I continue to vote. #email
1.5.15 Cr Vandervis unlikely to quit several missions #coverup #naturaljustice
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II….
3.1.15 DCC: Street talk NEVER HAPPENED
28.4.15 Today at DCC in pictures
24.4.15 DCC re Dr Bidrose’s time as most senior Citifleet Manager
23.4.15 DCC severely FAILS councillor #naturaljustice #contempt
18.3.15 Lee Vandervis releases emails #Citifleet investigation
13.3.15 Cr Vandervis: LGOIMA request – Citifleet … Deloitte Report
24.12.14 Dunedin: Watching the detectives
1.12.14 Stadium Review: LGOIMA request and 2009 Town Hall speeches
18.12.14 DCC: Deloitte report released on Citifleet
21.11.14 Stadium Review: Mayor Cull exposed
19.11.14 Forsyth Barr Stadium Review
1.9.14 DCC Fraud: Further official information in reply to Cr Vandervis
30.8.14 DCC Fraud: Cr Vandervis … urgent need for facts and record to be public
27.8.14 DCC whitewash on serious fraud, steals democracy from citizens
22.8.14 DCC: Deloitte report referred to the police #Citifleet
3.7.14 Stuff: Alleged vehicle fraud at DCC
1.7.14 DCC: Far-reaching fraud investigation Citifleet
28.5.14 DCC: Audit and risk subcommittee
20.3.14 Delta: Report from Office of the Auditor-General
19.3.14 ORFU: Black-tie dinner, theft or fraud?
26.2.14 DCC: New audit and risk subcommittee a little too late !!
14.2.14 DCC: Broadband AND bicycles #fraudband speed
1.12.13 Secret Commissions Act aka ‘Backhanders Law’

█ For more, enter the terms *deloitte*, *citifleet*, *fraud*, *conduct*, *vandervis*, *delta*, *orfu* in the search box at right.

Posted by Elizabeth Kerr

17 Comments

Filed under Business, Carisbrook, Citifleet, Construction, CST, Cycle network, DCC, DCHL, DCTL, Delta, Democracy, DVL, DVML, Economics, Enterprise Dunedin, LGNZ, Media, Name, New Zealand, NZRU, NZTA, OAG, OCA, Ombudsman, ORFU, People, Police, Politics, Pools, Project management, Property, SFO, Site, Sport, Stadiums, Town planning, Transportation, Urban design

What Audit NZ really says in DCC LTP consultation document (March 2015)

Contrary to ODT’s limited reporting picked up by JimmyJones at the previous post…. $95 million is the figure to be concerned about. Read on.

DUNEDIN CITY COUNCIL
Long Term Plan 2015/16 – 2024/25 Consultation Document
Adopted 24 March 2015

From Audit New Zealand’s Ian Lothian:
(see LTP Consultation Document, pages 43-44)

Audit NZ Lothian 2015

█ More on Long Term Plan 2015/16 – 2024/25 at http://www.dunedin.govt.nz/your-council/draft-long-term-plan-2015-2016

Related Posts and Comments:
19.5.15 DCC LTP must meet $68M budget shortfall over next decade
19.5.15 Mosgiel pool trust conflicts of interest #bigfishsmallpond
19.5.15 Ode to sickly DCC
18.5.15 DCC laundering – wring out Regent Theatre Trust, pump DVML
18.5.15 NEWSFLASH —Mosgiel pool, tracking [PONT]….
17.5.15 Cr Vandervis on DCC project budgets
● 7.5.15 DCC Draft LTP 2015/16-2024/25 —public submissions online
28.3.15 DCC Draft LTP 2015/16 to 2024/25 —CONSULTATION OPEN
25.3.15 DCC Long Term Plan: Green-dyed chickens home to roost
14.1.15 DCC Draft Long Term Plan: more inanity from Cull’s crew pending

Posted by Elizabeth Kerr

*Text image: whatifdunedin

11 Comments

Filed under Business, DCC, Democracy, Economics, Media, Name, New Zealand, OAG, People, Police, Politics, Project management, Property, SFO, What stadium

DCC LTP must meet $68M budget shortfall over next decade

Updated post
Wed, 20 Mar 2015 at 6:41 p.m.

█ WOOPS, see JimmyJones at Comments and next post —it’s MUCH worse than $68 million….

AUDIT NEW ZEALAND HAS REASON TO BE VIGILANT
—WHAT NEW POOL COMPLEX FOR MOSGIEL TAIERI ??

Audit NZ on DCC (ODT 25.3.15)

ODT: Council accused of being in denial over long-term plan (25.3.15)

Related Post and Comments:
25.3.15 DCC Long Term Plan: Green-dyed chickens home to roost

█ For more, enter the terms *mosgiel*, *taieri*, *trust*, *pool*, *draft ltp* or *vandervis* in the search box at right.

Posted by Elizabeth Kerr

*Text image: whatifdunedin

16 Comments

Filed under Business, DCC, Democracy, Economics, Media, Name, New Zealand, OAG, People, Police, Politics, Project management, Property, SFO, What stadium