Tag Archives: DCTL

Delta #EpicFail —Noble Subdivision: Cameron, Crombie and McKenzie

Election Year : The following opinion is offered in the public interest. -Eds

Received from Christchurch Driver [CD]
Tue, 23 Feb 2016 at 10:02 p.m.

This correspondent was very interested to read today’s front page ODT article which appeared to confirm the suspicions of an earlier post.

Delta CEO Grady Cameron must be given credit for being honest and transparent, for confirming that Delta spent $3.3M last year buying more debt on the Noble (Yaldhurst) Subdivision. This is in contrast to the cabbage-like behaviour of DCHL chairman Graham Crombie, and DCC/ DCHL financial controller (GCFO) Grant McKenzie. It has hard to escape the conclusion that Mr McKenzie when questioned by city councillors must have known the amount of money Delta spent “strengthening its position”, ie buying up securities that ranked ahead of the Delta security. First, he said he did not know the figures involved, then he indicated to the ODT after Monday’s council meeting that the figure of $3M “was not accurate”, and that he “could not say” what the figure was. Simply put, if Mr McKenzie could not say what the figure was, how did he know that $3M was not accurate ? It seems clear he did know, and is dancing on the head of a pin. He could say the figure, but he would not. No one is counting the six figure amounts ! Maximum points for dissembling to that man.

This and other verbal pirouetting at a recent Council meeting where Mr McKenzie was unable to distinguish between dividends and debt repayment despite repeated questioning from Cr Lee Vandervis was also alarming. Perhaps the lure of a return to the relatively debt free safe haven of the University beckons, not subject to scrutiny of the citizens….

The other person of interest is DCHL chairman Graham Crombie, who also has trouble with numbers and counting. Cr Hilary Calvert surmised that the $11.7M already written off plus the $13.3M debt meant that Delta had an exposure of up to $24M. Cr Calvert was close, if not quite right as the $13.3M was the value of the debt Delta estimated, not its actual debt. Mr Crombie said the figure “never got that high”, and that the interest and penalties were “horrendous”. Mr Crombie’s nose is growing : Grady Cameron confirmed the core debt was $11.3M, plus $3.3M buying debt, plus the previous year’s debt write down of $10.7M which has already been attributed to Noble by Delta. These add to MORE than the $24M suggested by Cr Calvert, yet Mr Crombie was happy to sidestep Cr Calvert, Cr Vandervis and any other councillors who were keeping up – not many it seems.

We should pause re : Mr Crombie has consistently said since the Noble debacle became public that all would be well, Delta would recover its core debt and the penalties and interest weren’t of any moment – yesterday he described them as both “horrendous” and “irrelevant”. An interesting question is – why were the penalties and interest “horrendous” ? The answer is because Delta’s security was so far down the security chain as to be virtually meaningless, and as a consequence, its charges indeed were horrendous because they had little chance of ever being paid, and the rates reflect that.

This correspondent is alarmed that an accountant would describe the interest payable on a debt as irrelevant, especially when the company in question has in effect financed the entire core debt of $11.3M with either borrowed money from the DCC, or by foregoing dividends to the DCC. Mr McKenzie would certainly not agree that the interest charges are irrelevant because Delta’s loan funding has been arranged through DCC treasury at somewhere between 4-7% per year from 2012. Although, the actual figures might be 3.9% to 6.85%….

Delta  logo 2We now know, thanks to Grady Cameron, that Delta embarked upon this foolhardy venture with a security ranking somewhere between 4th and 6th in line.

The crucial question is : after this year’s debt purchases, where are they ranked now ? Delta and DCC refuse to confirm this. If they were ranked first, then it would be Delta themselves that had forced the mortgagee sale process. This seems unlikely since if Delta had control as first security, they would have no reason to hide this and the PR department would spin this as Delta taking firm and decisive action to recover their debt. Instead, Mr Cameron meekly says that Delta is a “secured creditor” and the mortgagee sale process is a “significant movement” towards payment. He doesn’t say to who….

It is also a concern why Delta invested a further $3.3M, if they still don’t have control of the project. Others have posited that they almost certainly bought the debt at a reduced value, but the key point is that they don’t have control and first security does not have to have any regard at all to the interests of lower ranked securities. This correspondent has seen at first hand several similar land deals where second ranking securities from large finance companies received zero. One can be sure that the first security will also have heavy penalty rates and other costs will emerge from the woodwork.

Delta were not some minor suppliers on the project. They supplied all of the infrastructure for the subdivision. There aren’t any other big parts to a subdivision. Typically, if the land is correctly zoned, the rule of thumb for the cost of a subdivision is a third land cost, a third infrastructure cost (Delta), and a third profit.

What is truly astounding is that there were at least three securities ahead of Delta and they knew this going into the deal. Any developer that needed three mortgages or debt securities just on the land and the resource consent process before they started work was doomed if there was any trouble, lack of expertise and unforeseen problems. This subdivision had all those, in spades. A further red flag should have been the involvement of one Mr Justin Prain, who previously touted the unique benefits of the similarly doomed 5 Mile town development at Queenstown. In fact the sales pitch was remarkably similar for both developments.

There are many questions to be answered about this debacle, but one that might unlock the whole saga is : what involvement did Murray Valentine, Mike Coburn and Peak Projects have in any entity related to the Noble Subdivision ?

This correspondent urges the other new Delta directors who were appointed after the Noble deal was entered into to show some cojones and order an inquiry. Clearly, it is just too hard for Mr Crombie.

This item via whatifdunedin:

### nbr.co.nz Monday May 25, 2015
Apple Fields’ directors fined $30,000 over filing omissions
By Suze Metherell
Justin Prain and Mark Schroeder, directors of the formerly NZX-listed Apple Fields, have been fined $30,000 each for failing to file financial statements for three years.
The Christchurch District Court found the two directors failed under the Financial Reporting Act to report Apple Fields’ accounts, according to Judge Emma Smith’s February judgment. The Financial Markets Authority brought the charges against the two directors after they failed to report the annual accounts for the financial years between 2011 and 2013. The FMA can seek fines of up to $100,000 for failure to report.
Christchurch-based Apple Fields, which listed on the NZX in 1986, was once New Zealand’s largest corporate orchardist and clashed with the Apple & Pear Marketing Board for the right to export fruit independently. The company moved into property development in the early 2000s, with Mr Prain appointed a director in 2002 and Mr Schroeder in 2003.
Apple Fields entered into a property development arrangement with Noble Investments in Christchurch, which was planning to subdivide land on Yaldhurst Rd into 254 residential sections as well as develop a village centre. After changes in the joint venture, Noble Investments could be considered a subsidiary and its accounts needed to be included in Apple Fields’ group accounts, according to the judgment. The Yaldhurst development stalled when Apple Fields ended up in a protracted legal battle with neighbouring landowners.
Read more

Related Posts and Comments:
23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
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…. Noble property subdivision

● 20.3.14 Delta: Report from Office of the Auditor-General

█ For more, enter the term *delta* in the search box at right.

Posted by Elizabeth Kerr

34 Comments

Filed under Business, Construction, DCC, DCHL, Delta, Economics, Geography, Infrastructure, Media, Name, New Zealand, People, Politics, Project management, Property, Resource management, Site, Town planning, Urban design

DCC: DCHL half year result to 31 December 2015

Council Chamber, Municipal Chambers, Dunedin [architecturenow.co.nz] 1Council Chamber, Municipal Chambers [via architecturenow.co.nz]

Dunedin City Council – Media Release
Dunedin City Holdings Limited Half Year Result to 31 December 2015

This item was published on 22 Feb 2016

Dunedin City Holdings Limited has reported a surplus of $8.7 million for the six months to December 2015.

The financial result was the first with the inclusion of both Dunedin Venues Limited (DVL – the company that owns the Forsyth Barr Stadium and is the landlord) and Dunedin Venues Management Limited (DVML – the event management company, which currently operates out of the Stadium and the Dunedin Centre) are now included in the Dunedin City Holdings Limited group of companies.

The net surplus for the group has decreased from the $10.1 million reported in the six months to 31 December 2014. Including the impact of DVL and DVML though, ie a like for like comparison, reveals a $2.7 million increase in surplus for the six months.

The continuing recent trend of debt reduction has also been a highlight of the financial period. Total debt has decreased from $593 million at the end of June 2015 to $588 million at the end of December, a $5 million decrease.

Dunedin City Holdings Limited Chairman Graham Crombie says, “It is pleasing to once again be able to show an improved financial result for the group. The like for like increase in surplus for the group, along with the reduction in debt levels, continues to reflect the improvement in the overall financial performance of the individual companies within the group.”

Aurora Energy Limited’s profit is down slightly on the previous year, but revenue has continued to grow. The company is continuing its major asset improvement and renewal programme, which is forecast to involve $372 million of expenditure over a 10 year period.

Improvements in both international and domestic demand, and a fall in the New Zealand dollar, were key factors for City Forests Limited. Along with reduced costs because of lower fuel prices and international shipping rates, this has led to healthy increase in surplus. The company’s net surplus has increased from $3.7 million in 2014 to $5 million in 2015.

Delta Utility Services Limited has also experienced a slight decrease in surplus for the six months, but continues to be in line with budget expectations. The company continues to develop its asset management, energy and environmental divisions.

Taieri Gorge Railway Limited has experienced an increase in revenue for the six months, reflecting a 10.2% increase in passenger numbers. Cost pressures over the reporting period have resulted in the surplus for the period being down compared with the same period last year.

The impact of increased event income, along with the implementation of the recommendations of the Dunedin City Dunedin Council’s Stadium review, has seen a significant increase in DVML’s financial result. The company has moved from a $1 million loss in 2014 to a reported six month surplus of $300,000. Mr Crombie says this is a significant turnaround for the company.

DVL has reported a net loss of $4 million compared to a loss of $4.4 million for the corresponding six month period last year. This is largely due to the impact of the Stadium review.

A rise in operating revenue, along with a decrease in interest costs, has resulted in an increase in the financial performance of Dunedin International Airport.

Contact Graham Crombie, Chairman Dunedin City Holdings Limited on 477 4000.

DCC Link

The Delta Affair by Douglas Field 23.2.16The Delta Affair [Douglas Field 23.2.16]

OTAGO DAILY TIMES
Corresponding DCC/DCHL reports below this group of news stories.

Councillors celebrate, criticise
By Chris Morris on Tue, 23 Feb 2016
A surplus of $8.7million delivered by the Dunedin City Council’s group of companies was cause for celebration and angst yesterday. The divergent views came as councillors discussed the results from Dunedin City Holdings Ltd and its subsidiaries for the six months to December 31 last year at yesterday’s full council meeting.

Delta loss could top $20 million
By Chris Morris on Tue, 23 Feb 2016
Delta’s potential loss from a stalled Christchurch subdivision could top $20 million, and was still growing as the company pumped more money in to secure its position, it has been confirmed. But the Dunedin City Council-owned company has all but given up already on recovering at least part of what it is owed, which is included as a “doubtful debt” on the company’s books.

DCC stating expectations
By Chris Morris on Tue, 23 Feb 2016
The Dunedin City Council is moving to spell out the expectations it has from its companies for the first time. But the move has already been dismissed as window-dressing by Cr Lee Vandervis, prompting a debate at yesterday’s full council meeting.

Conflict policy code reworking requested
By Vaughan Elder on Tue, 23 Feb 2016
Fears of unintended consequences caused Dunedin city councillors to request more work be done on a code of conflict policy. The policy, which consolidates the management of staff conflicts of interest in one document, was considered for adoption at yesterday’s meeting, but was sent back to chief executive Sue Bidrose.

Councillors back rounding of pool charges
Tue, 23 Feb 2016
Dunedin City councillors have supported rounding pool charges to the closest 50c. Council staff said rounding pool charges would simplify the cash handling process for customer service staff and result in quicker transactions for people paying with cash.

Dunedin stadium in the black
By Chris Morris on Mon, 22 Feb 2016
The company running Dunedin’s Forsyth Barr Stadium has turned a $1 million loss into a six-figure profit, and is forecasting greater returns in future.
The result came as the Dunedin City Council’s group of companies released their latest six-month reports and statements of intent, which will be discussed at today’s full

Conflicts of interest policy
By Chris Morris on Mon, 22 Feb 2016
Dunedin city council staff could be forced to resign under a new conflicts of interest policy to be considered by councillors today. The new policy would cover all council staff and contractors, but not councillors, who would be the subject of a separate report still being prepared.

DUNEDIN CITY COUNCIL
A full council meeting was held on Monday, 22 Feb 2016, starting at 1:00 pm.

Agenda – Council – 22/02/2016 (PDF, 53.7 KB)

Report – Council – 22/02/2016 (PDF, 63.8 KB)
Dunedin City Holdings Ltd Financials for the Six Months Ended 31 December 2016

Report – Council – 22/02/2016 (PDF, 542.4 KB)
Dunedin City Holdings Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 66.1 KB)
Dunedin City Holdings Ltd Group of Companies Financials for the Six Months Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 2.0 MB)
Aurora Energy Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 206.1 KB)
City Forests Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 2.5 MB)
Delta Utility Services Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 191.6 KB)
Dunedin City Treasury Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 1.1 MB)
Dunedin International Airport Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 493.6 KB)
Dunedin Venues Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 314.9 KB)
Dunedin Venues Management Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 583.3 KB)
Taieri Gorge Railway Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 174.4 KB)
Dunedin City Council’s Letter of Expectations for 2016/17

Report – Council – 22/02/2016 (PDF, 68.3 KB)
Draft Statement of Intent – Dunedin City Holdings Ltd

Report – Council – 22/02/2016 (PDF, 192.0 KB)
Dunedin City Holdings Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 828.7 KB)
Aurora Energy Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 192.7 KB)
City Forests Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 111.3 KB)
Delta Utility Services Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 92.5 KB)
Dunedin City Treasury Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 1.6 MB)
Dunedin International Airport Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 50.3 KB)
Dunedin Venues Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 119.1 KB)
Dunedin Venues Management Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 70.4 KB)
Taieri Gorge Railway Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 130.6 KB)
Conflicts of Interest Policy (Council Officers)

Report – Council – 22/02/2016 (PDF, 1.7 MB)
Wastewater Connection to 38 Church Hill Road

Report – Council – 22/02/2016 (PDF, 84.1 KB)
Community Engagement Plan for 2016/17 Annual Plan

Report – Council – 22/02/2016 (PDF, 295.4 KB)
2016/17 Aquatics Fees – Options for Annual Plan Consultation

█ Source: DCC webpage

Posted by Elizabeth Kerr

36 Comments

Filed under Business, DCC, DCHL, DCTL, Delta, Democracy, Dunedin, DVL, DVML, Economics, Infrastructure, Media, Name, New Zealand, People, Politics, Project management, Property, Resource management, Site, Stadiums, Tourism, Town planning, Transportation

Delta: Update on Yaldhurst subdivision debt recovery

Election Year : The following item is offered in the public interest. -Eds

Received.

From: Gary Johnson
Sent: Friday, 19 February 2016 5:18 p.m.
To: Elizabeth Kerr
Subject: 160219 Media Statement_Delta half year results – update on Yaldhurst subdivision debt recovery

Elizabeth

We see there has been interest on the What if? Dunedin… on the current position on Delta’s recovery of an outstanding debt related to the Yaldhurst subdivision, Christchurch.

I hope the attached information provides a useful update, ahead of Delta’s half year report for the six months to 31 December 2015, due for release next week.

Kind regards, Gary

Gary Johnson
Marketing and Communications Manager
[Delta Utility Services Ltd]

ATTACHMENT [click to enlarge]

160219 Media Statement_Delta half year results - update on Yaldhurst subdivision debt recovery (scanned)

Related Posts and Comments:
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
21.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
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…. Noble property subdivision

● 20.3.14 Delta: Report from Office of the Auditor-General

█ For more, enter the term *delta* in the search box at right.

Posted by Elizabeth Kerr

52 Comments

Filed under Business, Delta, Dunedin, Economics, Geography, Infrastructure, Name, New Zealand, Project management, Property, Resource management, Site, Town planning, Urban design

Delta / DCHL not broadcasting position on subdivision mortgagee tender

Election Year : The following opinion is offered in the public interest. -Eds

Received from Cr Lee Vandervis
Sunday, 14 February 2016 at 10:43 p.m.

█ Message: An individual interested in the Noble [Yaldhurst Village] subdivision but who wishes to remain anonymous has sent me the attached photograph and the following comment. I believe that it is in the public interest for this comment to be published, as it is largely confirmed by information I have been receiving from interested parties in Christchurch over the last two years.
It seems remarkable to me that the current Yaldhurst subdivision mortgagee sale process has not been widely reported or commented on, especially as DCC’s Delta is so heavily invested in what was always a risky subdivision, a very similar scenario to the Delta Jacks Point/Luggate subdivision that lost $7-9 million.

Yaldhurst Village site received 14.2.16Delta heavily invested in failed Yaldhurst land subdivision, Christchurch

“Taken 13 February.
These are the only residents likely on this piece of land in the near future.

There are pylon radiata right through the land.
According to someone who lives in the subdivision next door, the Noble owner agreed with the next door owner that there could be a road which goes through both subdivisions, which would allow more sections to be developed on the next door land. Apparently he reneged on the deal so as he could put more sections on the Noble land. In the event he has since died, and both NZTA and the Christchurch City Council have not been allowing the subdivision to be signed off because the roads developed on the land are not sufficient for either reading in general or for roads which a Council will take over when the subdivision is complete.

So the number of sections Noble wanted to squeeze out of the land determined the roads which are not right for the land.

It is being advertised as a block of land, without taking into account the infrastructure put in I guess by Delta, because it looks like you would need to start from scratch.

Someone shifts the cows around the land to keep the grass down.

I could not even find a gullible cow who would tell me they thought the land was worth the $10 to $15 million we are pretending Delta could get out of any possible sale, even if they were the first call on the proceeds rather than being in line after a mortgagee or 2 as well as any others with priority claims.”

[ends]

New Zealand Companies register: Delta Utility Services Limited (453486)

█ Directors: David John Frow (appointed 25 Oct 2012), Trevor John Kempton (01 Nov 2013), Stuart James McLauchlan (01 Jun 2007), Ian Murray Parton (25 Oct 2012)

More: Historic data for directors

Related Posts and Comments:
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
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…. Noble property subdivision

█ For more, enter the term *delta* in the search box at right.

Posted by Elizabeth Kerr

3 Comments

Filed under Business, DCC, DCHL, Delta, Democracy, Dunedin, Economics, Geography, Infrastructure, Media, Name, New Zealand, OAG, People, Pet projects, Politics, Project management, Property, Resource management, Site, Town planning, Travesty

Delta #EpicFail —Yaldhurst Subdivision ● Some forensics

Election Year : The following opinion is offered in the public interest. -Eds

Noble subdivision in Yaldhurst empty sites 2013 [Iain McGregor-Fairfax Stuff.co.nz]Noble subdivision in Yaldhurst 2013. Iain McGregor/Fairfax

Received from Canterbury Driver [CD]
Fri, 29 Jan 2016 at 1:01 a.m.

Subject: Delta and how to hide $10M

This correspondent was curious to know the extent of Delta’s exposure on their failed attempt at the Christchurch subdivision market. DCHL chairman Graham Crombie becomes more bashful than a teenage boy at his first disco when discussing the potential numbers in the media. Mr Crombie coyly advises that “millions” are owed and he is confident “millions” will eventually, in the fullness of time be received, albeit a few less million than is owed. Link

Of course, as John Maynard Keynes famously said, “in the long run we are all dead”, and this is also clearly the view of the financier (named by The Press last year as Southpac Property Investments) who has watched years roll by with no interest or repayments, and has called in the mortgage.

However much Mr Crombie wishes to hide in the corner, desperate to be ignored, clutching tight to his chest those precious numbers, he has been upstaged. His CEO Grady Cameron, has tantalised us with a peep of a disclosure in his opening statement in the 2015 Delta Annual Report on the DCC website. Mr Cameron confirms without being specific that Delta have “an outstanding debt” on a Christchurch subdivision and that the “fair value” of the secured debt is independently valued at $13.2M. He notes helpfully that this value was up from $12.8M last year. We can all relax now….

Thus we know that $13.2M is included as an asset somewhere in the Delta accounts. Delta says it has $59.705M of assets in its summary on page 15. But does it really ? Page 25 shows the breakdown of assets with $25.244M of the $59.705M being “trade receivables”. (The rest of the assets are basically plant, equipment and property.) At page 46, in “Note 23” safely buried far from public scrutiny, lies the smoking gun of Delta’s financial assets of $25.244M. There it is, a provision for “Less estimated doubtful debts” of $9.761M, that reduces the figure to $25.244M. This is a highly original description for bad debts, but desperate times call for desperate euphemisms.

So let’s be clear here – more than half of Delta’s financial assets ($13.2M) – amount to a bad debt in a failed subdivision, that is

a) now under mortgagee sale

b) has a third (or fourth) tier finance company as first mortgagee (because the banks would not lend on it)

c) that was built incorrectly, with the incorrect sized roads

d) faces ongoing legal action

e) cannot have titles released

f) has noisy 33KV powerlines running through it

g) has been completed since 2013 with no money received.

Continuing on, the news for the Owners (us) becomes more dire. The $9.761M “doubtful debts” included a carry over amount of $4.837M from 2014, which in turn included a $1.932M provision in 2013. The Yaldhurst (aka Noble) subdivision turned bad in 2012-2013, so it is very likely that the vast majority of the entire $9.761M is a bad debt provision for this heinously bad decision.

What it means is that Mr Crombie cannot possibly be “confident” of having a large proportion of the debt repaid. A large proportion has already been written off, it seems. This is not a “timing issue” as he claims. Delta has already written off up to almost $10M. That would put the total Delta exposure in excess of $20M.

Mr Crombie needs to identify how this proposal came to be put to the Delta board and which board members and executive staff supported it. Releasing board minutes on this item would be helpful for interested ratepayers to understand the history. Mr Crombie should also provide a comprehensive, clear and truthful report to Dunedin City Council with the full facts of Delta’s position and how the council-owned company got into this mess. This may be awkward for Mr Crombie as the people concerned will be well known to him but that is the price and the consequence of the position he chose to accept.

Under a worst case scenario, if Delta recovers very little of the $13.2M they say they will get, their solvency is threatened. Up to 80% of the Delta shareholders equity of $15.804M will disappear, with just $2-3M left. That would mean the shareholders equity to debt ratio would be out of this world. Delta has $26.852M of debt (to DCC). To build back up to the current equity position, which at $15.804M is not high, would mean years of retaining earnings within the company with no dividends to Council. Delta’s position would be so weak that the Council would either have to inject funds or DCC treasury would foreclose on its own company….

Delta in 2015 paid DCC a dividend of $2.5M. Without this in future years there will be significant rate rises each year.

That is bad enough but the bigger issue is how, after similar multimillion-dollar Delta debacles at Luggate and Jacks Point, was this allowed to happen. Dunedin ratepayers owe thanks to Cr Lee Vandervis. His has been one often lonely voice attempting to get to the truth of this matter. We must trust that he and any other like-minded councillors will be able to enforce some accountability onto Delta.

[ends]

Related Posts and Comments:
21.1.16 Delta #EpicFail —Yaldhurst Subdivision
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
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…. Noble property subdivision

Posted by Elizabeth Kerr

3 Comments

Filed under Business, DCC, DCHL, Delta, Democracy, Economics, Events, Infrastructure, Media, Name, New Zealand, OAG, People, Pet projects, Politics, Project management, Property, Resource management, Site, Town planning, Travesty

Delta #EpicFail —Yaldhurst Subdivision

Received from Christchurch Driver [CD]
Wed, 20 Jan 2016 at 6:35 p.m.

Last year Delta told Council and Dunedin ratepayers to return to their seats and not to worry about a bit of financial turbulence on the Yaldhurst subdivision, pictured.

Yaldhurst Village 1Yaldhurst Village 2Photos: CD 20.1.16

Delta are owed several million (possibly more) and the story was that all is well, even though they have been not paid for about 18-24 months because they have security over the land.

Sadly for Delta and its owners (us) a security means Jack Squat if the FIRST mortgage or prior ranking securities have not been paid.

And of course the first mortgage holder can simply choose to force the sale, and IGNORE lower ranking securities, until all their loan, penalty interest, selling costs, legal fees are covered.

The question of interest is – what is an unusable subdivision going to fetch, Jack Squat perhaps ?

Other Urgent questions for Delta:

1. How much is still owed ?

2. Have they been paid anything on this project in the last year ?

3. What do they know about the forced sale process ?

4. What is the total amount of debt secured against the property that ranks ahead of them ?

5. What is the range of the estimated mortgagee sale price – just a range is fine thanks !

6. Is the company owing Delta solvent, and does it have any other assets that can be pursued ?

7. Which group of directors at Delta authorised this multimillion-dollar project ?

8. Did Delta themselves know or check that the subdivision was not designed to the CCC requirements before they started ?

9. Will anyone be held accountable for this spectacularly inept decision to be involved and any loss resulting ?

[ends]

ODT 18.3.15 Expects Delta to be paid 'millions' [odt.co.nz] screenshotwhatifdunedin screenshot: ODT Online

New Zealand Companies register: Delta Utility Services Limited (453486)

█ Directors: David John Frow (appointed 25 Oct 2012), Trevor John Kempton (01 Nov 2013), Stuart James McLauchlan (01 Jun 2007), Ian Murray Parton (25 Oct 2012)

More: Historic data for directors

Related Posts and Comments:
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
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…. Noble property subdivision

Posted by Elizabeth Kerr

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

12 Comments

Filed under Business, DCC, DCHL, Delta, Democracy, Economics, Events, Infrastructure, Media, Name, New Zealand, OAG, People, Pet projects, Politics, Project management, Property, Resource management, Site, Town planning, Travesty

Noble property subdivision aka Yaldhurst Village | Mortgagee Tender

Updated post 21.1.16 at 4:35 p.m.

█ Tender now closes 4pm Friday 12 February 2016
http://www.realestate.co.nz/2702107

32.83 ha in 11 lots – http://www.realestate.co.nz/2702107
Listing # AH3988 Listed 28 Nov 2015
Tender closes Friday, 22 January 2016 at 4pm

Confirmation of site as that of Yaldhurst Village (Noble) at http://www.villagelife.co.nz/contact/

[click to enlarge]

Yaldhurst Village Mortgagee Tender [realestate.co.nz - Harcourts]

Yaldhurst Village contact information [villagelife.co.nz]

Yaldhurst Village location map [villagelife.co.nz]

█ Think DELTA. Delta Utility Services Ltd (453486)

█ Think long-in-the-tooth Delta Directors and their consultant(s).

█ Think Grady Cameron (overpaid chief executive).

█ Think Jacks Point and Luggate ($9 MILLION of Dunedin ratepayers’ money down the gurglar – represented as $6M in the Auditor-General’s report).

Same old crew. Same old formula?
Woopsie (Dunedin ratepayers $19 MILLION exposure at Yaldhurst Village – how’s that going – “climbing!”).

█ WHAT NOW ? ? ?

Related Posts and Comments:
20.7.15 Noble property subdivision —DELTA #LGOIMA
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…. Noble property subdivision

Posted by Elizabeth Kerr

9 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Economics, Infrastructure, Name, New Zealand, OAG, People, Pet projects, Politics, Project management, Property, Resource management, Site, Town planning

DCC: DCHL on Waipori Fund

Dunedin City Council – Media Release
Positive Result for Waipori Fund

This item was published on 22 Jul 2015

The Waipori Fund performed strongly in the past financial year while meeting key targets. The fund’s capital base for 2014/15 is above its inflation adjusted target for the first time since 2008.

The fund is managed by Dunedin City Treasury Limited, a company owned by Dunedin City Holdings Limited (DCHL). DCHL is in turn is owned by the Dunedin City Council.

DCHL Chair Graham Crombie says this is an important measure because it shows the fund’s capital base is not being eroded. “As well as a good overall return for the year, it’s very pleasing to see the fund achieve this threshold.”

The fact the fund reached the target in the past financial year was mainly due to strong equity in the bond markets and a weakening New Zealand dollar.

The market value of the investment portfolio was $81.6 million at 30 June 2015. This was a 13.1% return for the year. This return also met the income objective of exceeding the official cash rate plus the consumer price index.

The graph below shows the progress of the fund since its establishment. The fund was created from the sale of the Waipori electricity generation scheme. It provides a source of revenue for the Council which can be offset against rates.

Waipori Fund
waipori-fund

Contact Group Chief Financial Officer on 477 4000.
DCC Link

****

The distribution to council was budgeted to increase slightly over the period of the council’s 10-year plan.

### ODT Online Fri, 24 Jul 2015
DCC has no plans to spend surplus in Waipori Fund
By Chris Morris
The Dunedin City Council is celebrating a better-than-expected 13.1% jump in the value of its Waipori Fund, but has no plans to spend the bonus. […] Council group chief financial officer Grant McKenzie said the “solid” result reflected strong equity in bond markets and a weakening New Zealand dollar. […] “It’s just a funding stream for council.”
Read more

Posted by Elizabeth Kerr

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Noble property subdivision —DELTA #LGOIMA

Received from Lee Vandervis
Mon, 20 Jul 2015 at 10:06 p.m.

█ Message: I am chasing answers to many questions regarding the Noble subdivision. Two LGOIMA ‘answers’ appear below.
Cheers, Lee

—— Forwarded Message
From: Sandy Graham [DCC]
Date: Mon, 6 Jul 2015 01:58:34 +0000
To: Lee Vandervis
Cc: Sue Bidrose [DCC], Graham Crombie [DCHL], Grant McKenzie [DCC]
Subject: Nobel Subdivision

Dear Lee

I refer to your request for information related to the Nobel Subdivision and respond as follows:

Q1. Can you please supply details and quantify the likely cost of the Delta/DCC exposure to the mortgagee sale of the Nobel Subdivision.
There is a very limited risk to Delta/DCC by way of mortgagee sale. There is however some financial exposure related to the subdivision and this was reflected in Delta’s Annual report for the 2014 financial year.

Q2. Can you please confirm the contractual details [preferably provide copies of the original and any subsequent contracts] that have led to our enormous exposure with the Nobel development.

All contractual details are withheld pursuant to section 7 (2)(h) of LGOIMA to protect the commercial position of Delta and further withheld pursuant section 7(2)(i) of LGOIMA to enable Delta without prejudice, to carry on negotiations.

When considering the request, the public interest was considered. This matter is currently before the Court in an effort to minimise any financial loss to the shareholder. We consider that protecting the legal position best meets the public interest at this time.

Given we have withheld information, you are entitled to a review of this decision by the Office of the Ombudsman.

I have cc’ed the original recipients of your request and the Acting CEO.

Regards
Sandy

Sandy Graham
Group Manager Corporate Services
Dunedin City Council

—— End of Forwarded Message

Note: Noble has been incorrectly entered as ‘Nobel’ by Ms Graham and Cr Vandervis in this exchange. -Eds

Related Posts and Comments:
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….

Posted by Elizabeth Kerr

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DCC low lifes #RugbyDebtStadium

Huh? Huh?

The council is increasing the capital of its investment company by $850m. (Ch39)

### dunedintv.co.nz June 30, 2015 – 7:24pm
DCC takes ownership of Dunedin Venues Limited
City councillors have voted for the organisation to take on an extra $30m of debt. That’s being transferred today from Dunedin Venues Limited. Councillors have also approved the equivalent payment of DVL shares, to repay the debt. And they’ve voted for the council to take ownership of the company, as well as Dunedin Venues Management Limited, for the new financial year.
Ch39 Link [no video available]

GdJ1TdKOidmOMr8WNAPWpWn1a7X4NOEVhQphQ2PqDgd7_GKJNDFE1hKR3OYsSIe_zlpEPTTwhUsPza5Kfq_IeQXCgqIdfjADBFB4UNSV1gPk2L6Qdz-oaQ0Ynpk-ftjkOJvU_NmjJP0z4j3mBacB8dzs8e4V5yUKzzDbmg=w300-h367-nc

Posted by Elizabeth Kerr

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Christchurch subdivisions: Heat gone?

Received from Lee Vandervis
Mon, 30 Mar 2015 at 10:37 p.m.

█ Message: Your readers may be interested in the claim in the following Press article that the heat has gone out of the Christchurch subdivision market with several other developments in trouble as well as Noble.

### stuff.co.nz Last updated 05:00 28/03/2015
Source: The Press
Gloomy outlook for solar housing in Christchurch
Has liquidation ended development dream?
By Liz McDonald
Is the vision of Highfield Park over? Fast-tracked by the Government and bigger than Hagley Park, the planned north Christchurch subdivision would have had 2200 solar-powered homes. The High Court this week placed its developers, Highfield Park Ltd, in liquidation over unpaid bills from engineering firm Tonkin & Taylor.

The 260-hectare subdivision site is a piece of farmland between Redwood, Mairehau and Marshlands. Its 2013 rezoning for housing was hastened under Earthquake Recovery Minister Gerry Brownlee’s new land-use plan but development stalled last year as the company struggled to find funds. In the meantime, the company’s options to purchase land for the development expired. Highfield Park Ltd is co-owned by the project’s founder, Christchurch engineer Roy Hamilton, his business partner, Brian Thompson, plus other investors.

Hamilton could not be contacted for comment following the court decision but he has previously confirmed the company had returned all section buyers’ deposits after missing project deadlines. Any creditors have until May 12 to contact liquidators about money owed. Highfield Park was intended to be New Zealand’s first solar-powered community and would house 5000 residents, offering ready-built homes as well as sections priced between $160,000 and $240,000. The plan included parks and two commercial areas with shops and cafes. Ground testing has revealed the land was a mix of TC1, TC2 and TC3 land, and needed some remediation. The first section titles were to have been ready by the end of last year.

An experienced Christchurch land developer, speaking on condition of anonymity, doubted anyone else would adopt the project. “The heat’s gone out of the market and it’s not a good time to start launching a major subdivision.” The developer said the Highfield project had struggled without control of the land or sufficient financial backing. He estimated up to $1 million could have been ploughed into the project already.

The development is not the only big-scale subdivision to have hit hurdles. Progress on Groynes Park near Belfast has stalled and its developers have managed to ward off liquidation bids from creditors. The company has promised work will resume soon. Ravenswood, half an hour north of Christchurch, is being offered for sale by developer Infinity Investment Group, which says the project is too big for it.
Stuff Link

Related Posts and Comments:
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….

Posted by Elizabeth Kerr

3 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Economics, Geography, Media, Name, New Zealand, OAG, People, Politics, Project management, Property, SFO, Site, Town planning

Noble property subdivision —DELTA

Received from Lee Vandervis
Tue, 24 Mar 2015 at 7:26 p.m.

█ Message: I have received confirmation today that DELTA are not just in a bad debt situation plus $1.5 million invested with the stalled Noble subdivision, but that they have subsequently invested even more in the Noble development than I had indicated yesterday.
Further claims from my business contacts associated with the Noble Subdivision are as follows:

“You are correct that Delta bought $1.5 million of Gold Bands first mortgage (a couple of years back).
Delta also bought another $1.5 million of the first mortgage recently (off Avanti Finance who had previously bought this off Gold Band).

Delta (Dunedin ratepayers) also appear to be funding Gold Bands current High Court attempt to defeat [ ] caveats in a mortgagee sale. The sole purpose of this High Court action [ ] is so Delta as second mortgagor can profit at the expense of the private citizens prior interests.”

Below is a representative title for the Noble subdivision.
As you can see there is a mortgage on the titles which tells you which other titles are involved, and a myriad of caveats.
In short, DELTA have bought heavily into a stalled litigious mess, with far too many similarities to their Jacks Point/Luggate debacle.

Kind regards,
Cr. Lee Vandervis

█ Email Attachment: Copy title re Noble Investments Ltd

Noble Subdivision representative title

18.3.15 ODT: Expects Delta to be paid ‘millions’

Related Posts and Comments:
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II….

Posted by Elizabeth Kerr

14 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Economics, Geography, Media, Name, New Zealand, OAG, People, Politics, Project management, Property, SFO, Site, Town planning

Noble property subdivision: “Denials suggest that we have not learned.”

Received from Lee Vandervis
Mon, 23 Mar 2015 at 2:48 p.m.

█ Message: It appears that ODT reporter Eileen Goodwin who so accurately broke the Noble subdivision story last week may not be allowed to continue to write on this follow-up as below. Consequently, I am forwarding the information as follows which I have received outside of DCC briefings to you in the hope that you may be able to help get public answers to questions raised that have traditionally been unavailable to this Councillor from the non-public DCC/DCHL.

—— Forwarded Message
From: Lee Vandervis
Date: Mon, 23 Mar 2015 11:40:51 +1300
To: Eileen Goodwin [ODT], Nicholas George S Smith [ODT]
Conversation: Noble property subdivision and Jacks Point/Luggate debacles. Denials suggest that we have not learned.
Subject: Noble property subdivision and Jacks Point/Luggate debacles. Denials suggest that we have not learned.

Hi Eileen,

Thank you again for your accurate quoting and for grasping the nettle regarding the Delta/Noble subdivision debacle.
I still am unable to ascertain precisely how many millions are at risk via DELTA, but an old business acquaintance of mine who claims to have reasonable knowledge of the project has given me the following information on the basis of complete confidentiality. It seems quite possible given the development scale. Hopefully you will be able to confirm some of the following with your media resources.

“Delta exposure is close to $19 million, about $1.5 million of that was cash investment to buy a portion of the first mortgage. Discussions have been for Delta to invest another nearly $4 million in cash to try and secure the balance of the first mortgage and a share of road adjustments.”

This is the most specific estimate of potential losses that I have received, but it accords with some other less specific estimates.

Information from other business people that I know personally suggests that Mr Crombie’s 18/03/15 ODT statement that “the situation should not be compared with Delta’s costly failed property investment at Jack’s Point” is misleading.
Both ‘investments’ are enormously expensive property speculations with enormous amounts of Dunedin ratepayers’ cash being used to gamble on high-risk ventures.
Both are speculative residential property subdivisions about 4 hours travel from Dunedin.
Both subdivision projects have had the involvement of Peak Projects International as Project Managers as indicated on their website http://www.peakprojects.co.nz/proj_infra.aspx
Both projects appear to have had the pivotal involvement not just of DELTA and sole surviving DCHL/DELTA Director Stuart McLauchlan but also of ex-DELTA Director Mike Coburn, although Mike Coburn’s centrality to the Noble development as a consultant is just business hearsay at this stage.
Both projects appear to have involved high levels of misrepresentation to Councillors, and lack of planning and foresight by DELTA.

Since I was first elected in 2004 I have had an on-going stream of complaints and allegations of mismanagement within DELTA, and this stream has periodically swollen since CEO John Walsh was replaced by CEO Grady Cameron. Allegations of massively top-heavy DELTA management, wasteful purchases of; management vehicles, plant and equipment, and overvalued smaller businesses etc. have come to me from DELTA staff, relatives of staff, and other involved business owners and their employees.
When I made a LGOIMA request for DELTA salary levels several years ago and discovered that CEO Cameron was on $460,000+ p/a when our DCC Paul Orders was ‘only’ on $350,000 p/a I went to advise CEO Orders whose response was “Yor forkin jokin!” Like my 2011 complaints of Citifleet fraud however, he seems to have done nothing about this top heaviness.
I have also for many years been calling for a restructuring of DELTA in non-public with the aim of maximising ratepayer value for the sale of DELTA and associated AURORA businesses, but the needed restructuring has not happened. Instead the current proposal is to spend $139,000,000 on ‘infrastructure upgrades’ for Aurora, which I interpret to mean expensive catch-up on long deferred maintenance with many contracts going to DELTA.

My reasons for now going public include the poor result achieved for ratepayers for my mostly non-public efforts to expose the Jacks Point/Luggate DELTA debacle, and the unwillingness again of DCC/DCHL personnel to face facts and clean out those responsible for such awful ratepayer losses now threatened with the Noble subdivision.

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

█ 18.3.15 ODT: Expects Delta to be paid ‘millions’

Related Post and Comments:
17.3.15 DCC —Delta, Jacks Point Luggate II….

Posted by Elizabeth Kerr

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Stadium costs +$20M per annum, against one Fleetwood Mac concert….

THIS DOESN’T SINK NEWS OF LATEST DELTA FINANCIAL BLOWOUT – NOBLE VILLAGE SUBDIVISION

I experienced Fleetwood Mac at Western Springs, Auckland in the 1980s, there is no way I want to see them live now in a crap-for-sound covered stadium at Dunedin. This cat has already eaten the cream. I might see them at Mt Smart, however.

How much has DCC/DVML paid to the promoter to get the band here?
They’ve spent $350,000 on tired roller Rod Stewart, who has yet to perform.

Fleetwood Mac - Christine McVie rejoining F.Mac 12.1.14 [pitchfork.com]

### ODT Online Fri, 20 Mar 2015
Fleetwood Mac to play Stadium
By Chris Morris
The rumours are true — Fleetwood Mac is coming to Dunedin. It was confirmed yesterday the group, one of the world’s best-selling bands, will perform its only South Island show at Forsyth Barr Stadium on Wednesday, November 18. Tickets costing between $100 and $300 plus fees will go on public sale from 10am on April 1, and a bumper crowd is predicted to pump millions of dollars into Dunedin’s economy. The British-American group’s Dunedin show will feature all five original band members, with Christine McVie having reunited with Mick Fleetwood, John McVie, Lindsey Buckingham and Stevie Nicks.
Read more

CroNix99 Uploaded on May 26, 2010
Fleetwood Mac – The Dance -1997 – Gypsy

CroNix99 Uploaded on Jul 2, 2010
Fleetwood Mac – Rhiannon – The Dance -1997

CroNix99 Uploaded on May 27, 2010
Fleetwood Mac – Landslide – 2004
Live In Boston – Say You Will Tour

Posted by Elizabeth Kerr

*Image: Fleetwood Mac – Christine McVie rejoining Fleetwood Mac 12.1.14 [pitchfork.com]

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DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

Updated post Wed, 18 Mar 2015 at 5:11 p.m.

What if? was quietly advised some weeks ago that another but lesser-sized example of the multimillion-dollar Jacks Point and Luggate shenanigans (read $9m loss to Dunedin ratepayers) by Delta is complicating the city council books.

We all know how deeply distressing the Jacks Point Luggate coverup by Dave Cull’s council was – assisted by the Auditor-general and the Serious Fraud Office (SFO) – to the Ratepayers who erupted in disbelief on publication of the Delta investigation.

Delta has been involved in another failed subdivision (don’t scream) – the Noble Village Subdivision off Yaldhurst Road, Christchurch (google that) – see Noble Investments Ltd.

It’s on the public record that a bankruptcy is involved. Name: Gordon Ralph Stewart. Check out the New Zealand Companies register.

Old news – some of the flavour: http://www.stuff.co.nz/the-press/business/your-property/8966113/Probe-into-subdivisions-roads

ODT are on the scent. See tomorrow’s newspaper. >> Go to Comment.

Grady Cameron (tweaked)

You know the huge salary that Delta’s so-called “go-getter” earns? We want a lot of that back. Back dated. Past due.
.

Related Post and Comments:
Delta: Report from Office of the Auditor-General (20.3.14)
.

█ AUDITOR-GENERAL’S OVERVIEW and FULL REPORT (Jacks Point Luggate) at http://www.oag.govt.nz/reports/2014/delta

Posted by Elizabeth Kerr

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DCC: DCHL/DVL/DVML limited half year result | Term borrowings $586.5M

Dunedin City Council – Media Release
Dunedin City Holdings Limited Half Year Result to 31 December 2014

This item was published on 27 Feb 2015

The Dunedin City Holdings group is reporting an improved profit after tax and higher operating cashflows in its half year result, compared to the same period last year.
For the six months to 31 December 2014, total revenue increased by 9%, to $128.3 million. This was due to strong income growth from across the group.
The profit after tax has increased 17% to $10.1 million from $8.7 million for the same period last year.
Cashflows generated by the operations of the group were $96.4 million which was $4.4 million higher than for the six-month period last year. Capital expenditure for the group was $4.1 million higher than at the same time last year.

Term borrowings (including the term debt due to mature within the next year) have decreased by $25.8 million to $586.5 million. These borrowings include debt held with the Dunedin City Holdings (DCHL) group, DCC operations and the Forsyth Barr Stadium companies as they all flow through Dunedin City Treasury Limited, a DCHL group company.

Graham Crombie DCHL 2DCHL Chairman Graham Crombie says, “The first six month of this financial year have produced a pleasing result for the group. Cashflow within the group is strong, the profit is higher and debt has reduced. This is a good outcome for shareholders, the ratepayers of Dunedin.”

Aurora Energy Ltd has had a good start to the financial year, being ahead in revenue and with a higher profit than last year. This is helped by higher demand at present in Central Otago due to additional irrigation activity.
Delta Utility Services Ltd profit is slightly down on last year, but revenue has continued to grow. Last year’s results were influenced by the discontinuation of some activities within the group.
Dunedin International Airport Ltd profit was up compared to last year. Changes in capacity at the Airport continue to be a challenge for the company.
Taieri Gorge Railway Ltd is performing better than at the same time last year. The tourism market has picked up. Some of this has been due to the timing of the cruise ship session being earlier this year than last.
City Forests Ltd profit for the first six month period has reduced. Log prices have fallen from the highs last year. The drop in the New Zealand dollar has assisted the company recently.

Dunedin Venues Ltd and Dunedin Venues Management Ltd do not form part of the DCHL reporting group. Their results, however, have also been released for the six month period.

Dunedin Venues Ltd trading was very close to its result for the same period last year. For Dunedin Venues Management Ltd, revenue was on budget for the first six months ($3.9 million) which was slightly down on same time last year ($4.1 million). The loss for the first six months was $1 million. The company expects to makes its budget for the full year.

█ The half year reports can be found at http://www.dunedin.govt.nz/dchl

Contact Chairman, Dunedin City Holdings Limited on 03 477 4000.
DCC Link

Posted by Elizabeth Kerr

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DCC on latest financial results

Benefits being massage therapist [ehowcdn.com] 1Don’t take it lying down, not yet

Dunedin City Council – Media Release
Financial Rating Outlook Remains Stable

This item was published on 04 Dec 2014

The Dunedin City Council has maintained its financial rating. In a Research Update released today, Standard and Poor’s (S & P) has affirmed the AA long-term and A-1+ short-term issuer credit ratings.
DCC Group Chief Financial Officer Grant McKenzie says it is pleasing to have the rating affirmed. “This reflects the ongoing work by elected members and staff to limit operational spending and reduce debt levels.”
In its 2014 update, S & P states the ratings reflect its view of New Zealand’s extremely predictable and supportive institutional framework, plus Dunedin’s strong financial management and very strong budgetary performance. “The stable outlook reflects our expectations that Dunedin will continue to manage its financial position in line with our forecasts.”

█ S & P is expected to release its full report in about a week.

Contact Grant McKenzie, Group Chief Financial Officer on 03 474 3849.
DCC Link

****

LARGE DROP IN EXPENDITURE DUE TO DELAYED PROJECTS

### dunedintv.co.nz December 4, 2014 – 5:43pm
DCC coming in under budget in latest financial results
As the year draws to a close, the city council’s latest financial results are being analysed. Overall things are looking good for the council, with many expenses coming in under budget. But the favourable accounts have highlighted a problem with one particular service.
Video

Related Posts and Comments:
3.12.14 Cycling at Dunedin —boring debate, network spending continues #DUD
26.11.14 Cr Hilary Calvert, an embarrassment
21.11.14 Stadium Review: Mayor Cull exposed
19.11.14 Forsyth Barr Stadium Review
15.11.14 Stadium #TotalFail

3.11.14 DCC: What happened to $20 million cash on hand? #LGOIMA
[DCC refuses to answer, processing . . . ]

23.8.14 DCC public finance forum 12.8.14 (ten slides)
5.7.14 DCC’s debt level — who do you believe?
17.12.13 DCC, Dunedin City Treasury and 3 big banks [Interest Rate Swaps]

Posted by Elizabeth Kerr

*Image: ehowcdn.com – Benefits being massage therapist

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Stadium Review: LGOIMA request and 2009 Town Hall speeches

████ Download: Stadium Review Nov v 15 (585 KB, DOC)

Copy received from Bev Butler
Sun, 30 Nov at 12:17 p.m.

Message: A while back I was told there was Rugby pressure happening behind the scenes to exclude the mothballing option.
Cheers, Bev

From: Bev Butler
To: Sandy Graham [DCC]; Grace Ockwell [DCC]
Subject: LGOIMA REQUEST: Stadium Review/Mothballing
Date: Sun, 30 Nov 2014 12:10:47 +1300

Sunday 30 November 2014

Dear Sandy and Grace

Earlier in the year it was announced that the stadium was to be reviewed and that all options would be considered, including mothballing.
Now with the recent release of the Stadium Review only two options are presented, namely, the status quo and the most extreme option of demolition.
1. Why were the options of sale and mothballing not reported on?
2. Did the Stadium Review committee look at the sale and mothballing options? If so, I request a copy of the findings. If not, why not?
3. Whose decision (names) was it to not include mothballing as an option?
4. Did the NZRU and/or ORFU have any input into the Review? If so, I request a copy of all documentation.
5. Who (names) from the NZRU/ORFU was consulted/involved in the Review?
6. Did any member of NZRU and/or ORFU influence/pressure/request that the mothballing option be removed/excluded from the Review? If so, who (names)?
7. Mayor Cull has publicly stated that the demolition option was included in the Review to show the “lunatic fringe” that demolition is not a realistic option.
a) Who (names) are the “lunatic fringe”?
b) If Mayor Cull is unable to name members of the “lunatic fringe” then why was the demolition option considered?
c) Why were the mothballing options not considered when well informed stadium critics had publicly called for this option? ie. Why was the extreme option from an unidentified “lunatic fringe” considered over the mothballing option proposed by identifiable well informed stadium critics, like myself, who have been proven correct in their predictions?
8. What part did Sir John Hansen play in stifling the mothballing option?
9. Will the mothballing options now be reviewed?

Yours sincerely
Bev Butler

___________________________________

REFRESH
Speeches made to Stop The Stadium public meeting held at Dunedin Town Hall on 29 March 2009:

Alistair Broad
Dave Cull
Gerry Eckhoff
Michael Stedman
Sukhi Turner

Speeches to Otago Regional Council (ORC) public forums for stadium:

Public Forum Speech to ORC by Bev Butler 11.2.09 – stadium meeting
Public Forum Speech to ORC by Bev Butler 3.3.09

___________________________________

On behalf of ratepayers and residents Dunedin City Council decided on and publicly listed ten conditions (10 lines in the sand) to be met for the stadium project. Unfortunately, this summary table shows the extent of departure!

Received from Bev Butler – Summary of Conditions
Sat, 29 Nov 2014 at 7.44 a.m.

[click to enlarge]
Summary of Conditions Butler

Recent Posts and Comments:
26.11.14 Cr Hilary Calvert, an embarrassment
22.11.14 ODT puffery for stadium rousing ?
21.11.14 Stadium Review: Mayor Cull exposed
19.11.14 Forsyth Barr Stadium Review
15.11.14 Stadium #TotalFail

Posted by Elizabeth Kerr

8 Comments

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ODT puffery for stadium rousing ?

The banner at today’s ODT Online home page

ODT 22.11.14 Tuning up the DCC (screenshot bidrose) 1

Received, a snapshot at 11:14 a.m. (to read the article get the latest budgie cage liner full of advertising with not much else EXCEPT an exclusive interview)

ODT 22.11.14 Tuning up the DCC (article image bidrose) 1

Oh Dear Times
Sue Bidrose, ‘I’ve always said I just don’t want to work for someone who’s not as good as me’.

Alternative text, just an observation
From King James Bible, Psalms 8:2, “Out of the mouth of babes and sucklings hast thou ordained strength”.

Updated post 23.11.14 at 10:47 a.m.
● Read the interview (Sunday release) at ODT Online

The completely under-researched yet highly threshed and winnowed
Fubar Stadium Review released on Thursday 20 November will be tabled at Monday’s Extraordinary Council Meeting (Edinburgh Room, Municipal Chambers at 1:00 PM).

████ Download: Stadium Review Nov v 15 (585 KB, DOC)

As to timing of review and puffery, coincidence?

ODT used the same new face the day before to sell the ‘Stadium in the black’ message (see Friday’s front page graphic)

ODT 21.11.14 Stadium in the black - front page1

Anything for tenure. The motorbike makes her one of the boys, and the girls. This popularity farce-triumph(ant) is costing ratepayers +$20million pa.

The newspaper can’t distract from an extremely inadequate Stadium Review by throwing us lines about a recreational biker’s “life, job and sleepless nights”. There’s a public excluded Chief Executive Appraisal and Appointment Committee meeting at the Mayor’s Office on Monday 8 December, 8:00 AM.

Related Post and Comments:
21.11.14 Stadium Review: Mayor Cull exposed
20.11.14 Forsyth Barr Stadium Review

Posted by Elizabeth Kerr

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Stadium Review: Mayor Cull exposed

### radionz.co.nz Thursday 20 November 2014
Checkpoint with Mary Wilson
Dunedin Mayor: ‘Stadium is not a lemon’
A Dunedin City Council report has looked into demolishing the city’s covered rugby stadium built for 200 million dollars just three years ago.
Audio | Download: OggMP3 (4:48)

mothballstadium2

████ Download: Stadium Review Nov v 15 (585 KB, DOC)

● 15.3.11 Post: Cr Dave Cull speech to Town Hall Meeting [31.3.09]
● 27.4.09 Post: Contract signed

### stuff.co.nz Last updated 09:08 21/11/2014 | Southland Times
Stadium demolition option only for ‘lunatics’
By Wilma McKay
Dunedin’s mayor has said the city council only included an option to demolish the city’s stadium to shut down “a lunatic fringe”. In an interview with Mary Wilson from Radio New Zealand, Dunedin mayor Dave Cull said demolition was included in a review of stadium funding, ownership and operation “to put to bed the frequent and strident claims of a lunatic fringe”. Cull described the opposing group as “a small vociferous band of critics all the way along through this process who have said it would be much better to knock [the stadium] over”. “So, we said ‘okay, we’ll look at that option, we’ll cost it, and that should put it to bed once and for all’,” he said in the interview. As it turned out demolition proved unworkable economically, Cull said.
City councillors are to gather for an extraordinary meeting on Monday to discuss its recommendations out of the review, including one that ratepayers stump up $18.1 million extra over the next 10 years to keep the arena afloat.
Read more

Stuff: Stadium under fire as city eyes next steps | Southland Times

****

### ODT Online Fri, 21 Nov 2014
Stadium review ‘kick in the guts for ratepayers’
By Chris Morris
Dunedin city councillors are preparing for a fresh war of words over Forsyth Barr Stadium, following confirmation it needs another $1.81million a year from ratepayers. The extra costs, together with a nearly $1million budget hole to be plugged by mid-2015, would see nearly $20million in extra ratepayer funding pumped into the venue over the next decade.
The findings – outlined with the release of the Dunedin City Council’s stadium review yesterday – prompted a mixture of resigned acceptance and recriminations from some councillors.
Read more

ODT: ‘I don’t think we had much choice’- councillor
[Richard Thomson, chairman, DCC Finance Committee]

Agenda for Extraordinary Meeting | Monday 24 Nov at 1.00 PM
Venue: Edinburgh Room, Municipal Chambers

Related Posts and Comments:
19.11.14 Forsyth Barr Stadium Review
15.11.14 Stadium #TotalFail
12.11.14 DVML: Two directors gone before release of stadium review
8.10.14 Stadium: Liability Cull warns ratepayers could pay more to DVML
6.10.14 Stadium misses —like it would ever happen, Terry
4.10.14 DCHL & DVML: Call for directors
30.9.14 DCHL financial result
25.9.14 DVML on Otago Rugby and Rod
13.9.14 DVML and ORFU refuse to disclose 2012 Otago Rugby deal
10.9.14 Stadium: Behaviours at Suite 29 (intrepid tales)
8.9.14 Jim Harland and the stadium MESS
28.8.14 Stadium Review: dark yet rosy thoughts [joke, honest]
15.7.14 Stadium: Who is being protected?
15.7.14 Rugby stadiums not filling #SkyTV
29.6.14 Stadium: NZRU in the sights
24.6.14 Stadium: DVML, mothballing, and ‘those TVs’ #LGOIMA
18.6.14 Crowe Horwath Report (May 2014) – Review of DVML Expenses
13.5.14 Stadium benefits, what?! (Copeman)
11.5.14 Stadium: DCC proposes extra funds for stadium debt repayment
5.3.14 Stadium: Fairfax business editor pokes DCC’s Fubar
26.2.14 Stadium costs, read uncapped multimillion-dollar LOSSES
24.2.14 Carisbrook Stadium Trust: ‘Facts about the new Stadium’ (31.5.08)
22.2.14 Carisbrook Stadium Trust costs
2.2.14 Stadium: ODT editorial (1.2.14) —Garbutt debunks myths
1.2.14 Stadium: ODT editorial (1.2.14) —“Palpable claptrap” says Oaten
27.1.14 Stadium: No 4 at interest.co.nz
24.1.14 Stadium: It came to pass . . . [stadium review announced]

█ For more, enter *stadium*, *dvml*, *terry davies*, *cst*, *dchl*, *dcc*, *annual plan*, *rugby* or *carisbrook* in the search box at right.
odt may 31 2008-1 (pdf cleaned)ODT 31.5.08 (advertisement) | PDF fax copy cleaned by whatifdunedin
[click to enlarge]

Posted by Elizabeth Kerr

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Forsyth Barr Stadium Review

Updated post 20.11.14 at 2:31 p.m.

████ Download: Stadium Review Nov v 15 (585 KB, DOC)

This Report should be left on the table by Councillors at the Extraordinary Council Meeting on Monday 24 November, since the implications of the Review’s published content and lack of content are very serious indeed.

Stadium Review - SummaryRecommendations 24 Nov 2014

Posted by Elizabeth Kerr

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Whaleoil on “dodgy ratbag local body politicians” —just like ours at DCC

Whale Oil Beef Hooked logo### whaleoil.co.nz Fri, 31 Oct 2014 at 5:20pm
Why is there no law to rein in dodgy ratbag local body politicians?
By Cameron Slater
Former ARC Councillor Bill Burrill is not the first dodgy ratbag Councillor to trough from abuses of power to his own pecuniary advantage in recent years. A few years back in 2009 Council Watch was calling for a number of Councillors from the Canterbury Regional Council to be prosecuted and sacked from their positions after an investigation by the Auditor General Lyn Provost found that four individuals had broken the law by acting in conflict with their official role. Back then those Canterbury Councillors failed to declare a conflict on interest that [led] to a financial benefit for themselves by participating in discussion and voting on proposals before Council. Under investigation the Auditor General’s office chose not to prosecute stating that whilst the Councillors should have withdrawn as a matter of principle – they had each received and shared legal advice that they could participate. And here in lies the problem. The Auditor General and Office of the Ombudsmen publish clear guidelines for Councillors and council staff but the reality is that the law is erroneously filled with holes that are exploited and there is precious little oversight of Local Government leading to the Auditor General loathing to bother and the Courts uninterested.
Read more

Posted by Elizabeth Kerr

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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

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Stadium Review: dark yet rosy thoughts

ODT 28.8.14 Letter to the editor Cuthbert p12 (1)ODT 28.8.14 (page 12)

Posted by Elizabeth Kerr

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DCC: Forensics for kids

Crime scene - forensic animation 09 - Tim McGarvey [tmba.tv] 11

Fairfax Media has obtained Audit NZ letters of management to the DCC from 2005 to 2012, released under the Local Government Official Information and Meetings Act. The letters show that in the years 2007-2010 auditors consistently urged the DCC to tighten up its risk-management policies and processes.

Audit NZ expressed concern over what it indicated could be inadequate controls over several internal processes, including verifying signatures of those authorised to sign invoices and purchase orders, independent review of creditor files, and controls of sensitive areas such as sale of council assets to staff. (Fairfax)

### stuff.co.nz Last updated 08:17 26/08/2014
Dunedin council officers ‘not kids’
By Wilma McCorkindale
The Dunedin City Council (DCC) appears to have ignored calls by Audit New Zealand to improve its risk and fraud processes, saying its officers were “supposedly people with integrity … not kids”.

The DCC revealed in June it was investigating a suspected major fraud within its Citifleet unit. The fraud was suspected to have been carried out over a decade. Citifleet team leader Brent Bachop died suddenly in May. His death has been referred to the coroner. Council chief executive Dr Sue Bidrose said the alleged fraud of $1.5 million included alleged illegal transactions resulting in the loss of profits from the sale of 123 council fleet vehicles. The findings have been passed to the Dunedin police for further investigation.

Fairfax Media has obtained Audit NZ letters of management to the DCC from 2005 to 2012, released under the Local Government Official Information and Meetings Act. The letters show that in the years 2007-2010 auditors consistently urged the DCC to tighten up its risk-management policies and processes. It appears Audit NZ was compelled to repeat similar advice over the period and noted the DCC met only minimum requirements.

Council managers’ response to the Audit NZ findings in 2010 was to say the council had considered creating an audit and risk committee but concluded its finance and strategy committee adequately performed the role. In December 2010 Audit NZ raised the issue of reviews of areas “susceptible to fraud”, but management commented that specific audits in the “most sensitive areas” had found “no transactions of concern or deficiencies in controls”.
Read more

Crime scene - forensic [scottthornbury.wordpress.com] 2b

Five council staff were involved in “employment processes”, with some facing the prospect of losing their jobs, the ODT understands.

[Irony] Local Government New Zealand president Lawrence Yule yesterday told the ODT the “mind-boggling” alleged fraud was the biggest involving a local authority he could recall.

### ODT Online Tue, 26 Aug 2014
Council overlooked audit advice
By Chris Morris
Dunedin Mayor Dave Cull concedes a chance to detect the alleged $1.5 million Citifleet fraud may have been missed, after the council twice overlooked advice from Audit New Zealand. The revelation came in Audit New Zealand’s annual reports to the council, obtained by the Otago Daily Times, which highlighted gaps in council processes dating back to 2003. […] The findings have triggered finger-pointing between past and present council staff, councillors and Audit NZ, but council chief executive Dr Sue Bidrose said responsibility for failing to detect the alleged fraud rested with the council.
Read more

Related Posts and Comments:
23.8.14 DCC public finance forum 12.8.14 (ten slides)
6.8.14 DCC tightens policy + Auditor-General’s facetious comments
3.7.14 Stuff: Alleged vehicle fraud at DCC
1.7.14 DCC: Far-reaching fraud investigation Citifleet
3.6.14 DCC unit under investigation
2.5.14 DCC $tar-ship enterprise
28.4.14 DCC loses City Property manager in restructuring
7.2.12 DCC ‘money go round’ embedded

Posted by Elizabeth Kerr

*Images (tweaked by whatifdunedin): tmba.tv – Tim McGarvey: 3D forensic animation (TMBA Inc. Animation Studio, New York City); scottthornbury.wordpress.com – F is for forensics (illustration by Quentin Blake, from Broughton, G. (1968) Success With English. Harmondsworth: Penguin)

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