Tag Archives: Eion Edgar

Harland to scale

  • Jim Harland and Sukhi Turner (via ODT 2.6.04) - supplied by Calvin Oaten 9.9.14
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    █ Ten years ago. Whoever typed THAT ?

    Related Post and Comments:
    8.9.14 Jim Harland and the stadium MESS
    27.6.14 Stadium costs $23.4144 million per annum
    2.6.14 Stadium costs ballpark at $21.337 million pa, Butler & Oaten
    23.5.14 Stadium | DCC Draft Annual Plan 2014/15 ● Benson-Pope asserts…
    9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
    10.4.14 Stadium: Edgar’s $1m donation (private sector fundraising)

    For more, enter the terms *harland*, *farry*, *malcolm*, *athol*, *stadium*, *dcc*, *cst*, *dchl*, *dvml*, *orfu* or *rugby* in the search box at right.

    Posted by Elizabeth Kerr

    *Image: Jim Harland and Sukhi Turner (via ODT 2.6.04) – supplied by Calvin Oaten

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    Jim Harland and the stadium MESS

    Meanwhile, as Mayor Dave Cull’s council keeps up with massive spending on low priorities and unnecessaries, this comes to light:—

    Jim Harland [odt.co.nz re-imaged by whatifdunedin] 2### ODT Online Mon, 8 Sep 2014
    Stadium budget help was declined
    By Chris Morris
    The Dunedin City Council declined an offer of specialist help to keep its Forsyth Barr Stadium budget on track, years before the cost jumped by millions of dollars, it has been confirmed. The decision, revealed in an Audit New Zealand report from 2010, has been criticised by Mayor Dave Cull, who said it was “a function of the attitude of the management and the executive at the time”. Former council chief executive Jim Harland defends the decision, saying the council’s oversight was felt at the time to be “appropriate”. The offer was detailed in the Audit NZ annual report to the council, dated December 2010, which covered the 12-month period to June 30 that year.
    Read more

    The decision to build a debt-funded stadium – of which Jim Harland, Malcolm Farry, Athol Stephens, DCC stadium councillors, ORC stadium councillors, and professional rugby cronies are GUILTY – was ALWAYS the decision to bankrupt the Dunedin City Council but more especially, and insidiously, the ratepayers and residents of ‘greater’ Dunedin and Otago.¹

    The Audit NZ offer was INANE and in any case a complete waste of time.
    Audit NZ is what it is, a basket case. Of sheer incompetence and hypocrisy, nationwide.

    Time for a full independent forensic audit of the Carisbrook Stadium Charitable Trust, fondly known as CST, headed by Malcolm Farry. This will also entail an intimate look at the way Dunedin City Council treated CST invoices, the Council’s spending delegations, and its chief signatories.

    Let’s hope somebody goes to clink before the accounting games are over.
    ___________________________
    ¹Only now are Otago power users waking up to the fact of high line charges being levied by Aurora Energy Ltd to fund subvention payments to ‘the stadium’ (see recent letters to the editor in the Otago Daily Times).
    Did the killer consolidated DCC think the people of Otago wouldn’t notice?

    Related Post and Comments:
    27.6.14 Stadium costs $23.4144 million per annum
    2.6.14 Stadium costs ballpark at $21.337 million pa, Butler & Oaten
    23.5.14 Stadium | DCC Draft Annual Plan 2014/15 ● Benson-Pope asserts…
    9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
    10.4.14 Stadium: Edgar’s $1m donation (private sector fundraising)

    For more, enter the terms *harland*, *farry*, *malcolm*, *athol*, *stadium*, *dcc*, *cst*, *dchl*, *dvml*, *orfu* or *rugby* in the search box at right.

    Posted by Elizabeth Kerr

    *Image: odt.co.nz (re-imaged by whatifdunedin) – Jim Harland

    5 Comments

    Filed under Business, Carisbrook, Construction, CST, DCC, DCHL, DCTL, Delta, Democracy, Design, DVL, DVML, Economics, Media, Name, New Zealand, NZRU, NZTA, ORC, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, Town planning, University of Otago, Urban design

    Stadium costs $23.4144 million per annum

    Received from Bev Butler
    Thu, 26 Jun 2014 21:43:05 +1200

    Cover note:
    According to the latest DVL/DVML six monthly reports the debt is growing not reducing – that is a concern. The $146.6 million debt was passed over to DVL, many millions were poured into servicing the interest and capital repayments for this debt but even with that happening the combined short term/long term debt of DVML/DVL now stands at $157.6 million – $11 million more! The long term debt of $146.6 million has been reduced to $138.8 million but short term debt stands at $18.8 million. It is a major concern that the combined debt is growing not reducing – and this is during the stadium’s honeymoon period.

    ———

    From: Bev Butler
    To: Sue Bidrose; Sandy Graham; Kate Wilson; Richard Thomsom; Chris Staynes; John Bezett; Lee Vandervis; Hilary Calvert; Doug Hall; Andrew Whiley; Mike Lord; David Benson-Pope; Neville Peat; Andrew Noone; Jinty MacTavish; Dave Cull; Aaron Hawkins
    CC: Calvin Oaten; Grant McKenzie
    Subject: Stadium $23.4144 million per annum
    Date: Thu, 26 Jun 2014 21:43:05 +1200

    Dear Mayor Cull and Councillors

    As a result of further discussions and more information obtained through further searching Council documents Calvin Oaten and I have updated the annual stadium costs which now stand at $23.4144 million. (See attached word document). No changes have been made to the spreadsheet I sent earlier which I prepared.
    There are some costs which have not been included due to the difficulty in quantifying them to the accuracy of which I would be comfortable.

    This $23.4144 million figure does not include any payments which may have not been fully transparent through the Council books.
    By this I mean that I understand there were approaches by Darren Burden, former CEO of DVML, to obtain payments for bills which DVML were unable to pay but which another Council Department had shown some willingness to transfer their surplus unspent funds from that Department to DVML. In that particular case, I understand the transfer did not happen. However, I have no access to information as to whether this had occurred on previous occasions through other departments.

    █ Also attached are Terry Wilson’s calculations coming from a different angle but which come to $23.1 million per annum. (See attached spreadsheet prepared by Terry Wilson).

    Yours sincerely
    Bev Butler

    Downloads:
    FB Stadium=Annual Ratepayer Costs=V2 (PDF, 9.47 KB)
    Stadium Costs $23.4144 million per annum (DOC, 30.5 KB)

    Related Posts and Comments:
    2.6.14 Stadium costs ballpark at $21.337 million pa, Butler & Oaten
    23.5.14 Stadium | DCC DAP 2014/15 ● Benson-Pope asserts himself
    9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler

    Posted by Elizabeth Kerr

    15 Comments

    Filed under Business, Carisbrook, DCC, DCHL, Democracy, DVL, DVML, Economics, Name, New Zealand, People, Politics, Project management, Property, Site, Sport, Stadiums

    Stadium costs ballpark at $21.337 million pa, Butler & Oaten

    Received from Bev Butler
    Monday, 2 June 2014 4:10 p.m.

    Message: During the presentation of my submission on the draft annual plan I was asked by Council to produce the figures to back up my claim that the stadium was costing approximately $20 million per annum. David Benson-Pope made a general statement questioning whether the claims in my submission were correct – though he didn’t elaborate when I asked him. I have followed up the Council’s request and the final figure is $21.337 million.

    Please note there is a huge disparity between what the DCC has published in the Draft Annual Plan 2014/15 and what can be shown by the DCC’s own figures that are very difficult to find and interpret. The ratepayers should not continue to be kept in the dark – the real costs are more than double what is being published.

    This has now been sent to the Mayor and Councillors.

    Regards
    Bev

    ————————————

    From: Bev Butler
    To: Sue Bidrose; Sandy Graham; Kate Wilson; Richard Thomson; Chris Staynes; John Bezett; Lee Vandervis; Hilary Calvert; Doug Hall; Andrew Whiley; Mike Lord; David Benson-Pope; Neville Peat; Andrew Noone; Jinty MacTavish; Dave Cull; Aaron Hawkins
    Cc: Calvin Oaten
    Subject: Stadium Cost $21.337 million per annum
    Date: Fri, 30 May 2014 22:49:43 +1200

    Friday 30 May 2014

    Dear Mayor Cull and Councillors

    Attached is a Word document prepared by Calvin Oaten outlining the annual stadium costs. The final figure of $21.337 million is based on figures sourced from and cross-referenced with DCC/DVML/DVL/DCHL documents.
    Also attached is a spreadsheet, containing four spreadsheets, prepared by Bev Butler, showing the treatment of the $146.6 million portion of the stadium debt.

    Yours sincerely
    Bev Butler

    Explanatory Note for Calvin Oaten’s Word document:
    I have expressly not mentioned nor quantified costs of what I would term ‘collateral’ effects of the Stadium Project. These of course are very real additional financial burdens to the citizens. These are: the realignment of SH88, the forgiving of considerable debt owed the city by the Otago Rugby Football Union, the costs of the purchase and sale of Carisbrook including the holding of same in the interim period. And of course, the ongoing operational losses of DVML’s operations. These particularly are proving to be a continual drag on the financial conscience of the ratepayer. It seems that if council cannot, or will not bite the bullet and raise the “pay to use” level to at least a break even figure then professional rugby is destined to have the last laugh at our expense. It is simply not fair.
    I remain, without prejudice
    Calvin Oaten

    Explanatory Notes for Bev Butler’s spreadsheets:
    1. Sheets 1 & 2 titled “$117.541m” and “$29.059m” respectively outline the calculations for the two tranches of stadium debt outlined in the DVL six-monthly report, dated 31 December 2013. This report states that the $146.6m stadium debt has been divided into two tranches of $117.541m and $29.059m. The $117.541m is for a term of 17 years and the $29.059m is for a term of ten years with a weighted average of 6.05%pa. In the calculations I have assumed monthly compounding periods and assumed the first payment(s) were made between 30 June 2013 and 31 December 2013. If the compounding period is shorter then there would be a small reduction in the payments.
    Note that in the DVL six-monthly report it states that a mortgage has been issued to pay for the two tranches. This is the first time this has been mentioned in the DVL reports so it is assumed that the mortgage was issued sometime between the last DVL Annual Report (YE 30 June 2013) and the DVL six-monthly report (31 December 2013). There is also mention of a GSA having been signed. I assume this is a General Security Agreement to secure the payment of the debt in the event of the stadium folding or the rental payments not being met. I acknowledge that I am unsure about this as I have no further information. Perhaps the Council staff could clarify this aspect.

    2. Sheets 3 & 4 titled “$146.6m monthly” and “$146.6m weekly” respectively outline the calculations for the stadium debt had [regular repayments been made] from the time the stadium opened. It appears from the calculations and the DVL Annual Reports that this was not happening. If it was then the debt would have reduced to approximately $134 million. The DVL long term debt as of 31 December 2013 stands at $141.090m. So up until the mortgage was secured, it appears the debt repayments were for interest only on the bonds (and an average annual capital injection of $2m) which were issued to pay for the stadium land and other stadium debt.

    [ends]

    Downloads:
    Stadium Costs $21.337 million per annum (DOC, 30.2 KB)
    Stadium debt calculations FINAL (XLS, 59.3 KB)

    Related Posts and Comments:
    9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
    23.5.14 Stadium | DCC DAP 2014/15 ● Benson-Pope asserts himself

    Posted by Elizabeth Kerr

    56 Comments

    Filed under Business, Carisbrook, DCC, DCHL, Democracy, DVL, DVML, Economics, Name, New Zealand, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums

    Stadium: Edgar’s $1m donation (private sector fundraising)

    Received from Bev Butler
    Thursday, 10 April 2014 11:31 a.m.

    From: Bev Butler
    To: Eion Edgar [Forsyth Barr]
    CC: Carlotte Henle [Kensington Swan]; Ian Telfer [Radio NZ]; Wilma McCorkindale [Fairfax News]; Debbie Jamieson [Southland Times]
    Subject: Has Sir Eion Edgar paid his $1 million donation?
    Date: Thu, 10 Apr 2014 11:30:19 +1200

    Dear Sir Eion

    You will recall the reports in The Mirror (10/7/13 – copied below) where you promised to honour your $1 million pledge initially reported in DScene (13/5/09).
    As there had been no public reports of you having paid up I decided a few months ago to make an official request under LGOIMA to see if this money had been received. After repeated requests for the Dunedin City Council to respond to my request I have received no response. I thought before making a complaint to the Office of the Ombudsman I would ask you directly if you have paid up. It is in the public interest that this pledge is honoured as it formed part of the push for the decision for the stadium to go ahead. You may also recall the report on the front page of the ODT (March 2007) where Mr Malcolm Farry announced “very excitedly” that he had a one million dollar donation for stadium construction with another two “in the wings”. This was also reported in the National Business Review.

    I have prepared a sequence of events to help clarify the situation:

    1. Mr Malcolm Farry announces three $1m donations for stadium construction in March 2007.
    2. The Marketing Bureau, commissioned by Carisbrook Stadium Trust, tells Dunedin City Council in Dec 2007 that naming rights are worth over $10m.
    3. ODT reports Sir Eion Edgar becomes trustee of CST in August 2008.
    4. Edgar and Farry announce Forsyth Barr have signed a Heads of Agreement in Jan 2009 and it is reported in NBR that a “substantial cheque” has been signed.
    5. Council documents of cashflow projections, peer reviewed by PwC in Feb 2009, show that the naming rights payments have changed from full payment up front to two years in advance – “front-end loading” is the term for this.
    6. Edgar announces in DScene in May 2009 he is making a $1m donation to the stadium.
    7. Nine changes, as revealed in LGOIMA response from DVML, are made to the Forsyth Barr naming rights agreement then the contract is signed on 2 August 2011…the day after stadium opens. One of the final changes is from yearly in arrears to monthly in arrears.
    8. Forsyth Barr makes their first payment on 1 September 2011. They are paying monthly in arrears.
    9. Edgar, through Forsyth Barr lawyer in Oct 2012, denies having stated that Forsyth Barr had written a “substantial cheque”. The NBR journalist distinctly remembers the “substantial cheque” comment being made. However, no correction sought from NBR at the time.
    10. The naming rights contract is no more than $5m as revealed in 2013 through LGOIMA request to DVML.
    11. Edgar claims his $1m donation is part of the naming rights corporate contract in The Mirror in July 2013. The $1m donation still unpaid. None of the other three $1m donations for construction have been paid.
    12. Michael Sidey is paying $1 million as part of the Forsyth Barr naming rights. I think what is happening is “double-counting”. Announcing million dollar donations for construction then two of these donations form part of the corporate contract for naming rights. Either [the] two $1 million payments are donations and the naming rights is only $3m, or the naming rights is $5m and the two [$1 million] donations don’t exist. You can’t have it both ways. This “double-counting” trick is what happened in the STS High Court injunction case where they claimed the $15m grant from Central Government was to offset the private funding shortfall AND was also used to offset the increase in land costs. This “double-counting” trick was established in the Court of Appeal.

    So, Sir Eion, have you paid the $1 million donation initially pledged for construction of the stadium? If you have paid $1 million as part of the Forsyth Barr naming rights then good on you. That’s between you and the corporate contract signed by Forsyth Barr. I’m sure Forsyth Barr are happy about that. What is of interest to the public is have you paid the $1 million donation pledged in DScene?

    As Chairman/Trustee of a number of Charitable Trusts you will be aware of the definition of a donation as recorded on the Charities Commission website. It bears no similarity to a corporate contract. I have copied Charlotte Henley, Forsyth Barr’s lawyer, into this email so she can confirm this definition, in case you still have any doubts.

    I hereby reserve all my rights.

    Yours sincerely
    Bev Butler

    Copied to other interest[ed] media and parties.

    Queenstown Mirror 10.7.13 page 1 (detail)
    Queenstown Mirror 10.7.13 page 2 (detail)

    dscene-13-5-09-page-9-eion-edgar-c3### DScene 13 May 2009
    The Insider: Big questions answered
    Mr Generous isn’t slowing down

    Winter Games NZ chairman Eion Edgar | Interviewed by Ryan Keen
    COMMUNITY-MINDED Queenstown-based businessman Eion Edgar, who retired as New Zealand Olympic Committee president last week and left a $1 million donation, on his support for knighthoods, backing Blis and why he’s not slowing down.
    #bookmark page 9 | DScene 13.5.09 page 9 (merge)

    [ends]

    Related Posts and Comments:
    30.7.13 Stadium: Accountability, paper trail leads unavoidably to NEWS
    18.7.13 ODT won’t touch Fairfax story
    10.7.13 Stadium: Edgar will honour $1M personal pledge to project
    3.7.13 [Pulled!] Call for Dunedin stadium cash
    24.12.12 A Christmas Tale
    7.6.12 Stadium: Forsyth Barr naming rights
    6.7.09 Eion Edgar on ‘stadium haters’

    Posted by Elizabeth Kerr

    27 Comments

    Filed under Business, Construction, CST, DCC, DVL, DVML, Economics, Media, Name, New Zealand, People, Pics, Politics, Project management, Property, Queenstown Lakes, Site, Sport, Stadiums

    ORFU: Black-tie dinner, theft or fraud?

    Dave Goosselink Tweets 17.3.14[screenshot]

    • Dave Goosselink — Dunedin face (and voice) for TV3 News & Sports
    • Samuel Gilchrist — social media handler for The Highlanders @Highlanders

    Retweets by @whatifdunedin and @SearleJamie
    • Jamie Searle — Southland Times racing reporter

    Correspondence received.
    Wednesday, 19 March 2014 10:58 a.m.

    From: Bev Butler
    To: Steve Tew [NZRU]; Doug Harvie [ORFU]
    CC: Murray Kirkness [ODT]; Steve Hepburn [ODT]; Rebecca Fox [ODT]; Ian Telfer [RNZ]
    Subject: Black-tie dinner bill to be paid?
    Date: Wed, 19 Mar 2014 10:56:35 +1300

    Wednesday 19th March 2014

    Dear Steve

    The following was posted on a local blogsite “What If Dunedin”.

    “The conscience of the ORFU is totally absent. The normal procedure for staging an event such as the black-tie dinner is to budget all costs, set the entrance fees to cover those costs and establish a profit level. That is both normal and straightforward – some I’m sure, would say honest, business practice..

    The way the ORFU operated was to set the costs, pay out the organiser – who just happened to be the wife of Laurie Mains – ignore the costs and bank the difference. Can anyone tell me that if this scenario happened with anyone else other than the dear old rugby-mad idiots on the Council involved, would this be tolerated? Not on your nelly. Can anyone tell me why this isn’t either theft or fraud?” *

    What especially interests me about this post is the question posed as to whether theft or fraud is involved.
    It feels like it to me but I’m not sure whether it would hold up in a court of law.
    Maybe it could…maybe it couldn’t.
    My limited understanding of the Crimes Act is that the hardest part to prove is intent.
    In the case of the black-tie dinner, did the ORFU have any intent on paying the bill?
    In my opinion, if they did they would have paid it when they received the money from the guests – because obviously it was the intent of the guests for their money to be paid for their evening out.
    What do you think, Steve? I’d appreciate your view on this.

    I noticed on twitter, media and rugby officials tweeting about this issue.
    Strange how the Highlanders’ social media official, Samuel Gilchrist, refers to me as a ‘warmonger’ because I am asking for some honesty from the ORFU. The problem down here is that there is no decent leadership in rugby and hasn’t been for years.
    We have Roger Clark as the current CEO of The Highlanders – he was the CEO of Southland Rugby Union at the time when they
    they owed over $100,000 in booze. I fear that nothing much has changed.

    I had hoped that with the new ORFU board that some leadership would be shown over the black-tie dinner scandal but, to date, that hasn’t happened. Change needs to come from the top so that people like Samuel Gilchrist understands that it is not okay to run off without paying your bills. He doesn’t seem to be able to figure this out for himself. I guess when things have been bad down here for so long those who can’t think for themselves look to the leaders for guidance which is lacking.

    That is why I have turned to you, Steve, to finally show some leadership and right this wrong.

    I hope I don’t have to continue to prod any deeper.

    Yours sincerely
    Bev Butler

    Previous letter to Steve Tew deleted, read it here

    [ends]

    *Link to source

    Related Posts and Comments:
    17.3.14 ORFU: Black-tie dinner on ratepayers
    14.3.14 ORFU flush to pay creditors

    For more, enter the terms *orfu*, *dinner*, *jeremy curragh*, *bailout*, *martin legge*, *dia*, *pokies*, *jokers*, *ttcf*, or *pokie rorts* in the search box at left.

    Posted by Elizabeth Kerr

    6 Comments

    Filed under Business, DCC, Democracy, DVML, Economics, Events, Hot air, Media, Name, New Zealand, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums

    ORFU: Black-tie dinner on ratepayers

    Correspondence received.
    Monday, 17 March 2014 9:28 a.m.

    From: Bev Butler
    To: Steve Tew [NZRU]; Doug Harvie [ORFU]
    CC: Steve Hepburn [ODT]; Rebecca Fox [ODT]; Murray Kirkness [ODT]; Ian Telfer [RNZ]
    Subject: FW: ORFU board responsible for paying the black tie dinner bill
    Date: Mon, 17 Mar 2014 09:26:55 +1300

    Monday 17th March 2014

    Dear Steve

    It is a while since we corresponded and Doug [Harvie] has indicated he doesn’t intend to respond any further (always best to keep the lines of communication open when in a leadership role) so thought I would let you in on the current situation of the ORFU.
    Please read from the bottom up and then read the rest of this email.

    Either Doug doesn’t fully appreciate the situation or is just hoping the issue will go away.
    Let me explain the situation from a different perspective so that both you and Doug may have a deeper understanding of the full implications.

    Let’s say that you and Doug decide to borrow a considerable amount of money to build a new restaurant with a state of the art glass roof. Absolutely stunning – is going to be just wonderful for me to conduct my business dealings there. Just days after your restaurant opens I come along and make a booking for 350 guests. Unfortunately, my business hasn’t been going that well so am using your new restaurant to have a fund-raising dinner. I employ one of my close friends, Elly-May, to organise the dinner for my business. She sells tickets for this dinner for $250 each. Now 350 guests at $250 each is $87,500. You charge me about $75 per guest – a total of about $26,000. Now after the event I pay my close friend Elly-May about $10,000 and have a few other expenses which leave me with a ‘profit’ of $52,000. BUT instead of paying you the $26,000 I put the lot in my ‘pot’ and cry that I’m poor. You and Doug were such wonderful hosts, our guests were well fed, plenty of booze and cleaned up after us. Thanks for that.

    One of your colleagues gets a bit shirty and accuses me of being dishonest. How dare him [sic]. I just wanted to spend the money on something else – I had other bills to pay even though my 350 guests were under the impression they were paying for the night out I just wanted to use the money for something else. Done it before – ask Jeremy Curragh. Well. I have some very important friends, you know. So I get them to sue him for defamation. Felt good when your colleague had to apologise.

    Do you really think I have acted honestly and with integrity?

    Now do you understand why the Dunedin ratepayers are still angry about this?
    I am still being approached by people (as recently as yesterday – some of them rugby coaches) upset by the ORFU’s actions.

    I suggest you two have a chat and do the right thing and pay this bill now that the ORFU have announced a ‘profit’ for the year. Someone needs to show some leadership over this. The Dunedin community deserve better. Personally I believe you have a moral obligation to pay this bill and set this wrong right. It is but a small gesture for the many indiscretions perpetrated by the ORFU on the Dunedin community.
    Some people in the Dunedin community think that the ORFU are rotten to the core but I don’t actually agree with them. I am an optimist at heart and believe that there is human decency in everyone. In the ORFU’s case it just requires a bit of deeper prodding.

    The ORFU have a moral obligation to show some human decency and pay this bill. It is a matter of principle. I will not be silenced on this. You have my word on that.

    Yours sincerely
    Bev Butler

    —————————–

    From: Bev Butler
    To: Doug Harvie [ORFU]
    CC: Steve Hepburn [ODT]
    Subject: RE: ORFU board responsible for paying the black tie dinner bill
    Date: Fri, 14 Mar 2014 09:43:19 +1300

    Dear Doug

    Saying that “ALL creditors have been satisfied in full, in one way or another” is not the same as saying that all creditors have been PAID in full.
    I know it is uncomfortable for you to be reminded of this but it still does not excuse the ORFU from doing the decent thing and paying their obscene black-tie dinner given they already had the money but decided to pocket it instead.
    How about showing some decency or goodwill towards those that bailed you out of your financial mess now that you are flush with $406,859 profit?

    Yours sincerely
    Bev Butler

    —————————–

    From: Doug Harvie [ORFU]
    To: Bev Butler
    CC: Steve Hepburn [ODT]
    Subject: RE: ORFU board responsible for paying the black tie dinner bill
    Date: Thu, 13 Mar 2014 20:16:32 +0000 [sic]

    You have your facts wrong Bev – ALL creditors of ORFU have been satisfied in full, in one way or another.

    I will not be responding to any further correspondence on this matter.

    D J Harvie

    Partner
    Harvie Green Wyatt

    (P O Box 5740, Dunedin 9016, New Zealand. Phone +64 3 4775005 or +64 21 2234169. Fax +64 3 4775447

    —————————–

    From: Bev Butler
    Sent: Friday, 14 March 2014 7:32 a.m.
    To: Doug Harvie [ORFU]
    Cc: Steve Hepburn [ODT]
    Subject: ORFU board responsible for paying the black tie dinner bill

    Friday 14th March 2014

    Dear Doug

    In today’s ODT the ORFU have reported a profit of $406,859 for the 2013 financial year and a profit of $134,656 for the 2012 financial year. Part of this so called profit is just pocketing of monies from unpaid bills.

    As you are fully aware, the ORFU ran up a DVML bill of $25,352 for their black tie fund raiser at the stadium on 5th August 2011. This was for food, booze, soft drinks and cleaning.

    Not only did the ORFU run off without paying this bill but the ORFU paid no venue hire for this brand new venue. Then to top it off the ORFU pocketed $52,000 from this fundraising event into their ‘pot’ which then is reported as profit for the 2012 financial year.

    The fact that the ORFU then pressurised the Council to ‘write it off’ does not excuse the ORFU from the moral obligation to pay this bill.

    I was quoted in the ODT as saying this was ‘obscene’. It is like booking a large restaurant, gorging yourselves on all their food and drink and hospitality then doing a runner.

    It is ‘obscene’ and I expect this bill to be paid in full.

    Laurie Mains, and his wife, Anne-Marie, refused to answer questions as to whether Anne-Marie was paid for her services in organising this event. I actually have no problem with her charging for her professional services. What I do have a problem with is that it is standard practice for professional event organisers to ensure all outstanding bills are paid before the ‘surplus’ is paid to the organisation. This did not happen. I don’t know whether Anne-Marie was paid $10,000, $12,000 or even more but whatever the amount the issue is that the other bills should have been paid first.

    I fully expect this bill to be paid as the ORFU did actually have sufficient funds to pay this bill as evidenced by the reported profit of $134,656 for the 2012 financial year.

    I also remind you that the $350 guests to this black-tie dinner paid $250 per ticket which would have been paid with the understanding that this would cover the costs. When a function such as this is organised, the ticket price is to cover the costs of the meal, venue hire, cleaning etc. Once the bills are paid, then any surplus is genuine ‘profit’ and the organisation then can legally pocket this ‘profit’.

    The fact that the ORFU pocketed this money instead of paying their bill is unacceptable.

    It is time the ORFU did the decent thing and pay this bill.

    Yours sincerely

    Bev Butler

    [ends]

    Posted by Elizabeth Kerr

    15 Comments

    Filed under Business, DCC, DVML, Economics, Events, Hot air, Media, Name, New Zealand, ORFU, People, Politics, Project management, Site, Sport, Stadiums