Tag Archives: Borrowing

Profligate behaviour : MYTH paraded as fact…… just like Aurora Energy’s propaganda campaign

Council infrastructure and networks committee chairwoman Cr Kate Wilson said last night the project would go ahead “regardless”. There was funding for three years, she said, and the fourth year’s funding would be part of next year’s long-term plan, and the one after that. The project was needed for safety reasons to prevent vehicles driving into the harbour and climate change making the road undriveable. (ODT) *Emphasis by whatifdunedin

Yeah right.

### ODT Online Fri, 26 May 2017
Botched cycleway estimate short by $13m
By David Loughrey
A bungled Dunedin City Council cost estimate to complete safety improvements and a cycle/walkway on Otago Peninsula has left the project more than $13 million short. The council announced yesterday an estimate for the project on Portobello Rd and Harington Point Rd that includes a cycle/walkway from Taiaroa Head to the city had risen from $20 million to $49 million. The earlier estimate, drawn up  in 2011, did not include parts of the cycleway to be built, land that had to be bought and a contingency fund to cover unforeseen expenses. […] Despite the cost rise, the council will start construction this year, with a shared cycle/walkway design.
Read more

****

Powerlines at sunset [garp.com]

Meanwhile WE will be paying for our Otago power network TWICE, at a crippling cost to business and residential power consumers well into the future —thanks to Dunedin City Council’s unsatisfactory governance of the companies Aurora Energy / Delta Utility Services and Dunedin City Holdings and, above all, the Council’s unfettered use of public funds to realise the dream of the Tartan Mafia and Professional Rugby to build the now frequently empty and under-utilised Forsyth Barr Stadium. (three concerts by Ed Sheeran in highly doubtful acoustic conditions inside ‘the roof’ does not a Christmas make).

All this because the Council conveniently fails to ensure it covers the infrastructural basics (in this instance: the safe, secure and continuous supply of electricity) – affordably – for the static if bearly stable City of Dunedin, and the sparcely populated Otago region in the mode of fast pumping growth. (There are simply too few permanent ratepayers to uphold ‘big bloated dreams’ and money siphoning on the rates take).

The Council did not ensure that Aurora Energy / Delta Utility Services were sufficiently well structured to Avoid profligate spending, making subvention payments to the stadium companies, or borrowing to pay dividends to the Council. (Probably the least of it).

There have been YEARS of dangerous neglect, embellishing the lack of repair and upgrade to the Community of Otago’s electricity network.

The Council is not well enough controlled (corporate and financial oversight) in order to Avoid its own profligate spending —so to protect, support and upgrade Otago’s power network as the solid basis for regional economic development and SAFE living —with CERTAINTY and SECURITY OF SUPPLY.

Instead, The People will now be plunged into further debt by the circus wheel of local body politicians and the morally thin and rather malevolent boards of directors (masters of spin) controlling the companies.

It’s time the People of Dunedin and Otago took control of their power infrastructure. Resolving, if they will, to adopt a different ownership and delivery model – one option is to form a democratically elected Community Power Trust to own and oversee the network; this is a sound regional model that is proven to work in other jurisdictions, with all due care.

WE have to Safeguard our future.
Not leave decision-making to unvetted members of the Tartan Mafia.
Especially not those in thrall to the likes of Gordon Stewart and his ilk (a vague reference to Delta’s speculative dealings at Yaldhurst, Christchurch – Delta is presently in a discovery process via an action brought to the Christchurch High Court by Caveators claiming Constructive Fraud).

DO NOT sell the ‘fragments remaining’ of the Otago Power Network (as bleated by some in power who can’t/won’t maintain a local body balance sheet – like you trust them, already?!) – to overseas corporates who will hike power prices disastrously to satisfy their shareholders.

Proceed carefully, OTAGO.

ASK QUESTIONS. RESEARCH. DO YOUR SUMS.
DON’T BE TOLD WHAT TO DO. ACT RESPONSIBLY FOR THE FUTURE PROSPERITY OF YOUR KITH AND KIN.
DO NOT PLACE FAITH IN OLD SPIN MAESTERS AND THEIR DEPUTIES.

We’ve seen them all before and have the new $1+ BILLION ‘invoice’ from Aurora Energy to prove it. Yes, we thought we had already paid over that amount in electricity and lines dues.

The suited ones bringing the clamour are looking after themselves – not US, not OUR COMMUNITY.

This is now a ransom.

The UGLY sister companies remain joined at the hip : Delta is Aurora Energy’s “preferred contractor”. And Steve is new, so don’t blame him! ….Really?

****

[propaganda – Aurora Energy]

After facing unrelenting pressure to up its game, Aurora Energy says it has stepped up to the challenge.

Sat, 27 May 2017
Dawn of a new Aurora era
By Vaughan Elder
Aurora chairman Steve Thompson said it had been under the “spotlight and the heat lamp” since accusations broke last October that it was endangering the public and workers by leaving its network, and in particular power poles, to deteriorate. That pressure turned ugly at times and workers had been verbally abused, including while out doing their supermarket shopping. Mr Thompson blamed the abuse on what he described as unfair criticism and media coverage. But Mr Thompson said in the face of adversity, Aurora and its sister company Delta had achieved a “hell of a lot” in a short space of time. The two companies were well on their way to splitting up in a divorce which Mr Thompson said would cost money in the short-term but reap huge benefits in the long-term. Aurora was also mid-way through an ambitious accelerated pole replacement programme and this week announced a $720million plan to upgrade its ageing network.
….Mr Thompson said its actions should help renew the public’s faith in both companies, but emphasised he believed that faith had been unfairly shaken by what he described as over-the-top criticism in the past seven months. He said safety concerns about the 2910 red-tagged poles across Dunedin, Central Otago and Queenstown Lakes had been overblown. At the same time, Delta and Aurora’s efforts to confront the problem, both before and after the story broke in October, had been under-reported, he said.
….Despite his anger at the way Aurora had been treated by critics and in the Otago Daily Times, he was under no illusion the network was in top shape, saying it was the second oldest network in New Zealand and acknowledged major work was needed to improve it in the next 10 years. But he would not be drawn on whether the situation had come about as a result of decades of underinvestment, which has been one of the main criticisms levelled at Aurora since October. He said he was not in a position to comment given he only started midway through last year.
Read more

CRITICAL ABHORRENCE FOR TOP CHAPS IN THE AURORA / DELTA / DCHL ‘EXECUTIVE’ (PAST AND PRESENT) WILL CONTINUE UNABATED IN THE PUBLIC SPHERE UNTIL THEY AND THEIR FRIENDS ARE OUSTED AND MADE ANSWERABLE TO HIGHER AUTHORITIES.

Otago people must busy themselves.
Time for formal inquiries. Time to REMODEL.

Related Post and Coments:
24.5.17 SCANDAL : Aurora Energy Ltd set to burden Otago ratepayers and residents with massive rates increases

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

Posted by Elizabeth Kerr

This post is offered in the public interest.

9 Comments

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NZ Economy —if you’re not Treasury

Either an interest rate hike or rising unemployment, together with falling migration, would spell “the end of the party”….
Due to the Reserve Bank putting restrictions on lending and other measures, the underlying economy was in good shape to withstand “a shock”. –Dominick Stephens, Westpac Chief Economist

### radionz.co.nz Fri, 10 June 2016
Nine to Noon with Kathryn Ryan
The risks of rising household debt
9:08 AM. NZ household debt has reached half a trillion dollars. That’s $100,000 of housing and personal debt for every man, woman and child. Nine to Noon speaks to Westpac Chief Economist, Dominick Stephens and Massey University’s Dr Jeff Stangl about the risks that poses to the economy. Link
Audio | Download: Ogg MP3 (30′19″)

****

### radionz.co.nz Sat, 11 Jun 2016 at 12:15 pm
RNZ News
Tough times coming as debt soars, warns economist
Record high household debt levels are not sustainable, warns a leading bank economist. At half a trillion dollars, housing and personal debt has hit 162 percent of the average household’s annual disposable income – higher than levels before the global financial crisis.
Westpac Chief Economist Dominick Stephens told Nine to Noon the decline in dairy prices was hurting the regions, but the downturn following the end of the Canterbury rebuild would be more severe than most people were prepared for. The rebuild played a huge role in the “rock star economy” between 2012 and 2014, with the international reinsurance industry dropping $20 billion on New Zealand and the government pumping in another $10b. As that money dried up, some business owners could find their businesses were not as robust as they thought, Mr Stephens said. What was less certain was when the “borrow and spend” dynamic – fed by skyrocketing houseprices – would come to an end.
Read more

harrys_view 19 Jan 2016 Harry Harrison at South China Morning Post [scmp.com] 1Harry’s View 19 Jan 2016 [scmp.com]

Posted by Elizabeth Kerr

16 Comments

Filed under Business, Democracy, Economics, Finance, Housing, Media, Name, New Zealand, People, Politics, Property, Public interest

DCC: What happened to $20 million cash on hand? #LGOIMA

1. Council had $22 million cash on hand.
2. Council spent $20 million (cash) on “capital projects”.
3. Council won’t account for the $20 million.
4. Council seeks open cheque to make discovery.

Report – FIN – 08/09/2014 (PDF, 2.3 MB)
Interim Financial Result – 12 Months to 30 June 2014

On 8 September 2014, the Council’s interim financial result for 12 months to 30 June 2014 was tabled at a meeting of the Finance Committee. A week later, ODT (15.9.14) reported Mayor Cull as saying there was a “significant improvement” to the Council’s core debt position.

In the same item, “Council group chief financial officer Grant McKenzie said the turnaround was partly due to a significant change in the amount of cash held by the council. The forecast had included about $22 million in “cash on hand”, but, since Mr McKenzie’s arrival, the decision had been made to slash the amount to about $2 million, he said. The cash was instead used to pay for capital projects, avoiding the expected need to borrow for the work, which reduced the council’s need to borrow by $20 million, he said.” ODT Link

What if? flagged the ‘cash-no-longer-on-hand’ illumination with a post:
● 15.9.14 Cull’s council spent the cash

Capital projects?
How was the money spent, and who by?
Then, we completely lost sight of it.
As the following correspondence shows, Council spent $20 million of ratepayer funds but refuses to declare where the cash went. Mr McKenzie plays the convenient game of obfuscation —like so many before him, and alongside him now at DCC.

█ Apparently, I’m to be personally charged for demanding relevant paperwork to track down the Public Money.

Accountability? Transparency? What the HELL is that?
NOT something DCC values, that’s a dead cert.

[begins]

From: Elizabeth Kerr
Sent: Tuesday, 23 September 2014 11:13 p.m.
To: Sandy Graham [DCC Group Manager Corporate Services]
Subject: LGOIMA request

Dear Sandy

Re: Cull warns debt still hurdle for council (ODT 15.9.14)http://www.odt.co.nz/news/dunedin/315949/cull-warns-debt-still-hurdle-council

Within the news item it says:

“The forecast had included about $22 million in “cash on hand”, but, since Mr McKenzie’s arrival, the decision had been made to slash the amount to about $2 million, he said.

“The cash was instead used to pay for capital projects, avoiding the expected need to borrow for the work, which reduced the council’s need to borrow by $20 million, he said.”

I would like the DCC to precisely itemise the way(s) in which the city council has spent this $20 million of “cash on hand”, to include the capital projects by name or other reference; the name(s) of the relevant council department(s) and or committee(s) that incurred this expenditure; the dates of expenditure; the spending delegations attributable to which, by name, formal signatories on account; and any other information in legible form that would assist the city council to meet my request in a forthright, full and transparent manner.

I look forward to reply.

Thanks, kind regards

Elizabeth Kerr

__________________________

From: Sandy Graham [DCC]
Sent: ‎Wednesday‎, ‎24‎ ‎September‎ ‎2014 ‎9‎:‎01‎ ‎a.m.
To: Elizabeth Kerr
Cc: Grace Ockwell [DCC]

Thanks Elizabeth

I have forwarded to staff to consider and a response will be provided as soon as possible but in any event within twenty working days. It may be that I need to come back to you with questions of clarification or refinement depending on how this information is stored/held but I will be in touch as required.

Warm regards
Sandy

__________________________

From: Elizabeth Kerr
Sent: Friday, 31 October 2014 1:42 p.m.
To: Sandy Graham [DCC]
Cc: Grace Ockwell [DCC]
Subject: Re: LGOIMA request [DCC expenditure of $20M cash on hand]

Dear Sandy

The official information request I made on 23 September 2014 (see emails [above]) is yet to have a response, we are now well outside the twenty working day limit.

Please provide update on how soon the information will be released.

Many thanks, and kind regards

Elizabeth

__________________________

From: Sandy Graham [DCC]
Sent: ‎Friday‎, ‎31‎ ‎October‎ ‎2014 ‎2‎:‎03‎ ‎p.m.
To: Elizabeth Kerr
Cc: Grace Ockwell [DCC]

Sorry Elizabeth.

My fault. I had been supplied with a response and had not forwarded it.

The Group Chief Financial Officer advises:

“This request cannot be completed for what they are requesting as I do not know what capital and operating activity we would assign to the $20 million. In addition the work involved in getting the invoices etc would be significant. What has happened is that we have used our cash on hand to fund council activity (operating and capital) instead of borrowing to do this.”

If you would like me to pursue the possibility of tracking down invoices, I would need to consider charging for this work because there would be significant collation and research required, and even then, we may not be able to fully answer your question. Let me know if you would like me to investigate this further.

The GCFO has indicated he is happy to meet and talk through the issues but is unable to provide any further information at this stage.

Again, apologies for my tardiness.

Sandy

__________________________

From: Elizabeth Kerr [mailto:ejkerr@ihug.co.nz]
Sent: Friday, 31 October 2014 2:05 p.m.
To: Sandy Graham [DCC]
Cc: Grace Ockwell [DCC]; Grant McKenzie [DCC GCFO]
Subject: Re: LGOIMA request [DCC expenditure of $20M cash on hand]

Dear Sandy

Thanks for getting back to me promptly today. I acknowledge receipt.

I’m considering your response fully and as a consequence looking into all my options.

Kind regards, Elizabeth

[ends]

Serendipitously, the same day (31.10.14), I heard from Cr Lee Vandervis —unbeknownst to me, a couple of days earlier he had voiced a similar query about the [MISSING PRESUMED DROWNED] $20 million “cash on hand”, and more, following his study of the Council’s Annual Report 2013-14.

Report – Council – 30/10/14 (PDF, 2.5 MB)
Approval and Adoption of Annual Report

[begins]

—— Forwarded Message
From: Lee Vandervis
Date: Tue, 28 Oct 2014 22:38:15 +1300
To: Sue Bidrose [DCC], Sandy Graham [DCC]
Conversation: Annual Report
Subject: Annual Report

Hi Sue,

The beginning of the Annual Report seems very reassuring with your highlighting our billion dollars worth of saleable assets, and our debt levels in pretty good shape and improving.

Looking further into the body of the report there is a lot of tabulation of various kinds of assets, but I seem not to be able to find the same depth of discussion on debt or the historical debt graph that I fought for years to finally get included. [A Consolidated term liabilities figure of $622,843,000 does appear on p199. I had been led to expect a historical graph of DCC debt and of total consolidated debt]
Is it possible to also have a graph of all inclusive historical staff costs included? There was one a while ago but it seems to have been dropped again.

At the end of the document I find a number of graphs that feature a fetching orange colour bar that seems to indicate that our “thriving and diverse economy” under Affordability has exceeded our LTP quantified limit on rates income in 2013 and 2014, exceeded the quantified limit on rates increase this year, slipped below the balanced budget benchmark, and also slipped below the essential services benchmark for this year.
It is no surprise to me that Citipark has not achieved targets, but I am surprised that your opening comments are so upbeat when the closing benchmarks are not met and the quantified limits seem to be exceeded.
These benchmark and limit graphs may have been misinterpreted by me because despite reading them several times I remain unsure of their real import.
Is it possible for someone to explain to me how the ‘pretty good shape and improving’ overview is supported, especially in light of the $20 million cut [from $22 million] in cash on hand and various sales that we have apparently recently instituted, combined with further expected constraints on DCHL subvention payments?

Looking forward,
Lee
__________________________

—— Forwarded Message
From: Lee Vandervis
Date: Fri, 31 Oct 2014 15:34:29 +1300
To: Debbie Porteous [ODT], Nicholas GS Smith [ODT]
Conversation: Annual Report
Subject: FW: Annual Report

Hi Debbie,
The Tuesday 28th email [above], which still remains unanswered, may help explain some of what deeply concerns me regarding yet another DCC Annual Report presented as up-beat.

Kind regards,
Cr. Vandervis
—— End of Forwarded Message
—— End of Forwarded Message

[ends]

If there was a plot to hide the way $20 million slid from sight, it thickens.
Not done yet, because I’m not a turkey dinner.

Posted by Elizabeth Kerr

20 Comments

Filed under Business, Citifleet, Construction, Cycle network, DCC, Democracy, Design, Economics, Enterprise Dunedin, Heritage, Hot air, Media, Name, New Zealand, NZTA, Otago Polytechnic, People, Politics, Project management, Property, Site, Stadiums, Tourism, Town planning, University of Otago, Urban design, What stadium

interest.co.nz on today’s Dunedin City bond issue

Simply…

DCC bond issue 8.10.14 [interest.co.nz]

### interest.co.nz October 8, 2014 – 04:00pm
Post by David Chaston
A review of things you need to know before you go home on Wednesday; record beef prices, new Wtgn quake faultline, fewer home loan approvals, Dunedin borrows $70 mln, swap rates fall
Link

Crap!

Tweets:

What if Dunedin (@whatifdunedin) tweeted at 10:09 PM on Wed, Oct 08, 2014:
@sue_bidrose news today Dunedin City is doing more borrowing – to be precise, it has issued $70 million of bonds at 4.88% #laughorcry :(

Sue Bidrose (@sue_bidrose) tweeted at 10:14 PM on Wed, Oct 08, 2014:
@whatifdunedin yep – money comes off term borrowings and gets refixed. Not new borrowings – our debt continues to decline (very slowly)

What if Dunedin (@whatifdunedin) tweeted at 10:18 PM on Wed, Oct 08, 2014:
@sue_bidrose unfortunately, it’s gone out on interest.co.nz website as MORE borrowing so Dunedin City has a little PR problem

Sue Bidrose (@sue_bidrose) tweeted at 10:21 PM on Wed, Oct 08, 2014:
@whatifdunedin Thanks. Bugger.

Updated post 13.10.14 at 10:55 a.m.

Total debt of the council group of companies was $621 million on June 30.
Move saves city $1 million a year in interest on seven-year loan.

### ODT Online on Mon, 13 Oct 2014
City debt overhaul to save millions
By David Loughrey
Dunedin is set to save $7 million after better economic times meant the city council was able to renegotiate a $75 million loan. Council company Dunedin City Treasury has renegotiated the loan through ANZ and Westpac.
Read more

Posted by Elizabeth Kerr

11 Comments

Filed under Business, DCC, DCTL, Politics

DCC considers sale of “149 properties”

Tomorrow’s ODT carries carefully arranged details…

Kevin Taylor [odt.co.nz tweaked by whatifdunedin] 1blkKevin Taylor, City Property “good, bad and ugly” manager

Updated post 19.9.14 at 11:29 a.m.

### ODT Online Fri, 19 Sep 2014
$10m property sell-off possible
By David Loughrey
Houses, empty sections and parkland are among 149 parcels of property across Dunedin being considered for sale, as the city council looks to add $10 million to its coffers. The council released its “work in progress” list after a Local Government Official Information and Meetings Act request from the Otago Daily Times. […] Council infrastructure and networks general manager Tony Avery yesterday said the list was a starting point.
Read more

News conferred last week:
█ Cr Lee Vandervis now sits on the DCC Audit and Risk Subcommittee. [ Minutes ]

Related Posts and Comments:
15.9.14 Cull’s council spent the cash
11.9.14 DCTL: New treasury manager
1.9.14 DCC Fraud: Further official information in reply to Cr Vandervis
30.8.14 DCC Fraud: Cr Vandervis states urgent need for facts and the record…
27.8.14 DCC whitewash on serious fraud, steals democracy from citizens
26.8.14 DCC: Forensics for kids
23.8.14 DCC public finance forum 12.8.14 (ten slides)
22.8.14 DCC: Deloitte report referred to the police #Citifleet
7.8.14 DCC issues shoddy treatment to Caledonian Bowling Club
● 30.7.14 Dunedin City Council | Consolidated council debt
● 28.4.14 DCC loses City Property manager in restructuring
24.1.14 Stadium: It came to pass… [stadium review]
14.10.13 DCC: New chief financial officer
21.3.13 DCC: Opportunity created by Stephens’ departure
6.3.13 Carisbrook: Cr Vandervis elaborates
20.11.12 Dunedin City Council vs Anzide Properties decision…
9.6.12 City Property to compete more obviously in the market…

Posted by Elizabeth Kerr

*Image: odt.co.nz (tweaked by whatifdunedin) – Kevin Taylor blackened, a bit

28 Comments

Filed under Architecture, Business, Carisbrook, DCC, DCTL, Democracy, Economics, Media, Name, New Zealand, People, Politics, Project management, Property, Site, Stadiums, What stadium

Cull’s council spent the cash

The cash was instead used to pay for capital projects, avoiding the expected need to borrow for the work, which reduced the council’s need to borrow by $20 million. –Grant McKenzie

The council had also agreed to another $20 million in carry-forwards for debt-funded project budgets, which shifted allocated funding for delayed projects from one year’s budget to the next. –Grant McKenzie

### ODT Online Mon, 15 Sep 2014
Cull warns debt still hurdle for council
By Chris Morris
The Dunedin City Council cannot afford to get “complacent” despite a significant improvement to its core debt position, Mayor Dave Cull says. Council figures released last week showed its core debt – excluding companies – had dropped by nearly $5.5 million, from $227 million to $221.5 million, in the last financial year. […] the drop was the first time the council’s core debt had decreased since 2002-03, except for when stadium-related debt was transferred from the council to Dunedin Venues Ltd in 2010-11.
Read more

DCC Sep 14, 2014

Dunedin City Council – Finance Committee – September 8 2014
Coverage of the Dunedin City Council Finance Committee held on Monday, 8 September 2014. Minutes, agendas and reports related to this meeting can be found at http://goo.gl/UumsOI

Report – FIN – 08/09/2014 (PDF, 2.3 MB)
Interim Financial Result – 12 Months to 30 June 2014

Report – FIN – 08/09/2014 (PDF, 668.6 KB)
Financial Result – 1 Month to 31 July 2014

Report – FIN – 08/09/2014 (PDF, 391.2 KB)
Waipori Fund Quarterly Report to June 2014

Related Posts and Comments:
11.9.14 DCTL: New treasury manager
● 9.9.14 Mangawhai, Kaipara: Latest news + Winston Peter’s speech [relevance]
1.9.14 DCC Fraud: Further official information in reply to Cr Vandervis
30.8.14 DCC Fraud: Cr Vandervis states urgent need for facts and the record…
26.8.14 DCC: Forensics for kids
23.8.14 DCC public finance forum 12.8.14 (ten slides)
28.4.14 DCC loses City Property manager in restructuring
30.1.14 DCC broke → More PPPs to line private pockets and stuff ratepayers
● 29.1.14 Mangawhai, Kaipara —we hear ya! [relevance]
17.12.13 DCC, Dunedin City Treasury and 3 big banks [Interest Rate Swaps]
10.12.13 DCC putting up cover, walls paper thin [risk exposure VERY HIGH]
14.10.13 DCC: New chief financial officer
4.7.13 Carisbrook: DCC losses

Posted by Elizabeth Kerr

13 Comments

Filed under Business, DCC, DCHL, DCTL, Democracy, Economics, Media, Name, New Zealand, People, Politics, Project management, Property, Sport, Stadiums, What stadium

DCC, Dunedin City Treasury and 3 big banks [Interest Rate Swaps]

WHICH THREE BANKS, DCC ??????

Comments received.

Rob Hamlin
Submitted on 2013/12/17 at 3:02 pm

As some of you may recall I have been very interested in DCTL and its large gains and losses on interest rate swaps. The following article http://nz.finance.yahoo.com/news/comcom-issue-proceedings-against-asb-194400510.html describes today’s announcement by the Commerce Commission to investigate ANZ, ASB and Westpac for mis-selling interest rate swaps to farmers – causing massive losses to these borrowers.

My interest has been further piqued by the arrangement between DCTL and three ‘independent’ banks called a ‘secured multi-option note facility’ within which these swaps are sold to DCTL by said ‘independent’ banks. The ‘secured’ as I have mentioned previously involves an ‘on call’ capital commitment by DCC to DCTL that has been deliberately put in place to circumvent Section 62 of the Local Government Act, which specifically prohibits council guarantees to trading companies. At $850 million of capital (which the DCC does not have), this amounts to some $17,000 for every ratepayer in this city – and you are liable for it.

As I have mentioned before, the very large annual fluctuations in gains and losses reported by the DCC due to interest and currency derivative exposure indicates that the DCC, via its $850 million guarantee to DCTL, is very deep indeed into this particular festering pile of poo.

I have lodged an LGOIMA request with the DCC for the identity of the three banks who are in the ‘secured variable rate note facility’ swap fest with DCTL. However, my unofficial sources indicate that the membership may be between 67% and 100% in common with the three banks mentioned in the ‘Stuff” report on large-scale interest rate swap mis-selling – Time will tell. But might be an idea to find the hammer and your piggy bank.

****

Russell Garbutt
Submitted on 2013/12/17 at 4:13 pm

Rob, I simply cannot understand the role of the OAG in all of this. The OAG provides auditing services to the Dunedin City Council and is supposedly the watchdog that ensures things are all tickety-boo in City Hall. But as we have already seen in the Kaipara case that the OAG now says that it is terrible that all of this borrowing took place, but that THEY ARE NOT ACCOUNTABLE. Surely to goodness that they have seen the actions of the CFO of the DCC to subvent the point and purpose of Section 62 of the LGA. Equally puzzling is how they have not been warning of the ramifications of these infernal legalised Ponzi schemes as they have been described elsewhere.

I distinctly remember the sacked Athol Stephens explaining to me in his office that many of the financial dealings of the DCC were to avoid tax liabilities. Athol was both a Director of a Council Board and an employee of the Council as I recall at the time.

There is enough smell round this issue to warrant a lot of interest by the OAG and the mainstream media, but sadly it is just too plain in the case of the OAG that they really aren’t interested in pursuing anything that would show that they themselves have been slack and incompetent, nor are they interested in pursuing anything that involves them in any serious work.

In the case of the media, it’s all just too hard. TV simply isn’t capable and is more interested in turning news into entertainment, and the financial reporters in the papers can’t seem to get their heads round anything substantial.

A case of the fox inside the henhouse and another one on the outside, looking out for the farmer.

Posted by Elizabeth Kerr

5 Comments

Filed under Business, DCC, DCTL, Economics, Name, New Zealand, People, Politics, Project management, What stadium