Tag Archives: Gross negligence

DCHL/Aurora/Delta unravelling


Garrick Tremain – 15 Dec 2016

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Received from Lee Vandervis
Thu, 15 Dec 2016 7:43 a.m.

From: Graeme Jeffery
Date: Wednesday, 14 December 2016 7:41 pm
To: Aaron Hawkins; Christine Garey; Doug Hall; Marie Laufiso; Mike Lord; Jim O’Malley; Sue Bidrose; Damian Newell; Chris Staynes; Conrad Stedman; Andrew Whiley; Kate Wilson, Mayor Dave Cull
Subject: Re: Delta Milking

Dear Councillors, I was pleased to see Richard Healey was vindicated in his claims about the crisis facing Delta and Aurora. I, however, was disturbed to see the appointment of another accountant, Steve Thompson, onto the board. Part of the problem with the pole replacement program was that for some time an accountant was running it. We need engineers on the board not accountants as the problem here is health and safety and the integrity of the network not financial systems. I was not however surprised to see Thompson on the board and read he is backing Cameron. After all, the company he works for is Deloitte and it awarded Cameron ‘Young CEO of the Year’. What is hard to understand is how Thompson could claim that Cameron has done a good job in difficult circumstances when most of those circumstances were Cameron and the Boards’ own doing. Does he mean, for example, the millions he lost on subdivisions in Luggate, [Jacks Point] and Christchurch or perhaps the fact that he was the first CEO in living memory to lose money in a financial year. Maybe he meant the 20 roading redundancies, 40 in Christchurch, 15 in Alex, a further 50 in Dunedin at Civil, and another 10 in Greenspace this year. A grand total of 150 good people that Cameron sent down the road. Or were those difficult circumstances the investigations he is or has been under by the Audit Office, WorkSafe, Energy Safety, the Commerce Commission, the [Central Otago] District Council, the Queenstown [Lakes] District Council and then Deloitte. Perhaps it was the hundreds of thousands he spent on relocating offices and his failed re-branding or the fact that he and his deputy Ballard have surrounded themselves with people not competent to do the jobs they are assigned to. Or was it maybe the death and at least 5 serious injuries that have happened on his watch? Maybe it was the destruction of asset management systems and his failure to implement inspections such as link boxes, MDI boxes, air break switches and high voltage switch gear that he has knowingly overseen.
Perhaps those difficult circumstances were driving out good people such as Jarrod Stuart who was to oversee the pole replacement program but could no longer work under interfering, incompetent leadership. Or was he worried that he has now appointed a person with no knowledge of electricity networks to run the pole replacement program after realising how his previous appointment of an accountant to do this went so wrong. Maybe he was worried that his minions have been altering the input into the xivic analysis of pole structures so he could claim to have less red tag poles in the system. Or was it really just his utter failure to carry out what was needed when he did the LineTech Report in 2010 which required 1200 poles replaced per year for ten years and the worry that he may [be] and was found out ? Maybe it’s been difficult for poor Grady in the 2 months since he announced the accelerated pole replacement program that he supposedly planned in April [being that] he hasn’t replaced one extra pole. That puts him 140 behind schedule already. Nothing new there. No perhaps it was the fact that he has destroyed morale and goodwill among staff at Delta and is now considered no more than a laughing stock?
Surely the council can see why Richard Healey said it was ‘mind boggling’ that Thompson backed Cameron and his deputy Ballard. Quite frankly it doesn’t say much for the new chairman of the board when he is supporting somebody clearly not fit to run the company. How can any sane person possibly support this man and his so called executive leadership team. I know very few staff at Delta do. It is completely wrong to suggest, as some councillors have, that it doesn’t matter whether Cameron stays or goes, as he has been responsible for the day to day running of the company and his reports to the board and vice versa have clearly been misguided and deficient. Not only that, no-one at Delta can move on or start the huge task ahead, safely or efficiently with the dark clouds of Cameron and co hovering over their heads. After all, Crombie and Mr Benson-Pope said heads should role if the allegations proved correct. They have. Remember safety was the primary motive for Richard exposing what was happening at Delta and Cameron has been shown to be part of this disgrace (eg LineTech Report).

What is truly sad, is that all this was preventable, as many people have told the councils and the boards over the years this was going to happen. As I have said before this was raised to the then mayor (Sukhi Turner), the board and an MP as early as 1998 but the old boys network closed around her and us, just as they may appear to be doing now. It is time we learnt that you need engineers, some more engineers and then more engineers to run these systems and drop the accountants, and lawyers, who are neither qualified or competent to run an organisation of this type and size, when it is facing the biggest infrastructural project in Otago for next year and beyond. PS, The views of many of the councillors who represent the interest of the ratepayers and owners of the asset have been frighteningly absent through this. Have they left the country, are scared or just not interested. Cheers Graeme (Unhappy ratepayer)

——– Forwarded Message ——–
Subject: Delta Milking
Date: Sun, 4 Dec 2016 22:15:38 +1300
From: Graeme Jeffery

To: Aaron Hawkins; Christine Garey; David Benson-Pope; Doug Hall; Marie Laufiso; Mike Lord; Jim O’Malley; Sue Bidrose; Damian Newell; Chris Staynes; Conrad Stedman; Andrew Whiley; Kate Wilson, Mayor Dave Cull

Dear Councillors, I was extremely disturbed to see from the mayor, that the report from Deloitte into public and worker safety and the management of the network may not be made public. Remember this report was to look into management and not on their behalf. The safety of workers and staff is paramount and commercial sensitivity being used as an excuse to censor from public view is inexcusable. Pole replacements, switchgear, transformers, potheads, lines down etc are not let out for contract so commercial sensitivity has no bearing – I fail to see any valid reason why the entire report can’t be made public considering the level of public and worker interest. Remember, you are answerable to the public and ratepayers first and then the board and management are answerable to you, not the other way round which keeping this secret would suggest. We who work on and the owners of the network surely should have the report before us first and the board and management after that. The tail is clearly wagging the dog here. Delta has had at least 5 serious injuries and one death since Cameron took over and Delta has been complicit in at least 2 of the injuries and the death. Roger Steel left behind a widow. How many more women must weep and families like mine worry while the council worries about “commercial sensitivity”, and puts the public’s interests behind the interests of the Delta board and management.
Cameron commissioned a report by LineTech in 2010 that showed he needed to replace 12,773 poles in Dunedin alone (32,406 in total with Central) in the next 10 years to keep the network safe. He and the board have replaced way less than 3,000 in Dunedin in that time. A blind eye or incompetent. Both I’d say. Also the report said inspections, increases in cables maintenance, replacement and equipment had not been adequate, yet I can assure you these have not been stepped up at all, in fact some of these things have stopped all together. For the record, at the recent meeting of Delta staff less than 15 people out of a hundred voted to have a committee and release a joint statement to the media. There was not a No vote taken. A vote of no confidence was proposed but again no vote was taken. I hope there was no confusion that this was a unanimous or popular decision by the workers to support the joint statement. Around 85 of the hundred there didn’t endorse it. Personally I would be disgusted and lose all faith in due process and democracy if this report isn’t released in full and the true owners, the ratepayers, aren’t informed [of] what’s been happening. It may appear to Delta staff and ratepayers alike that the old boys network is closing in on the council and mayor. Remember, you the councillors are answerable first and foremost to the asset owners, the ratepayers, and not the Delta board and management.

[ends]

28.10.16 ODT: Criticism for Cull on poles approach
Whistleblower Richard Healey and Delta staff member Graeme Jeffery were yesterday highly critical of Mr Cull’s response and questioned why he had not yet condemned Delta and Aurora for their health and safety failures.

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I-Know-Nothing Stuart McLauchlan has no Get Out Of Jail Free card

● McLauchlan was appointed to the Aurora/Delta Boards on 1 June 2007.

Aurora Energy Ltd http://www.companies.govt.nz/co/471661
Delta Utility Services Ltd http://www.companies.govt.nz/co/453486

● McLauchlan served on the Board of Dunedin City Holdings Ltd from 1 June 2007 to 31 October 2011.

Dunedin City Holdings Ltd http://www.companies.govt.nz/co/559098

● McLauchlan ended his stint as Highlanders Board chairman in October 2009. He was appointed in 2004 by NZRU.

As a mere accountant and ‘professional’ receiver of (many sets of) directors fees, Mr McLauchlan is completely out of his depth in regards to property development and subdivision practices per se, however friends and colleagues found themselves assisted towards advantageous pricing of ‘stadium land’. Mr McLauchlan is renowned for having been in the thick of Delta’s ‘lightly investigated’ loss-making Luggate and Jacks Point property speculations. Contemporaneously, Mr McLauchlan and ‘friends’ were behind Delta’s buy-in to the then illegal subdivision at Noble Yaldhurst, Christchurch. That subdivision is set to lose Dunedin ratepayers further millions while bank rolling, once again, certain male protagonists.

We’re not sorry that Mr McLauchlan must take what is coming.

stuart-mclauchlan-ngaitahutourism-co-nz-1Thu, 15 Dec 2016
Stadium hurt renewal plans – McLauchlan
A departing Aurora Energy board member says pressure to pay for Forsyth Barr Stadium meant less was spent on network maintenance. Former Aurora and Delta board member Stuart McLauchlan was reluctant to go into any detail about the findings of a Deloitte review, but was keen to highlight the problems it identified pre-dated the current board. ….He said his resignation after nine years on the boards of the two beleaguered companies had nothing to do with the review’s findings and he was disappointed the connection had been made. Cont/

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ODT 15.12.16 (page 16)

odt-15-12-16-latters-to-editor-campbell-hubbard-moffat-p16

█ For more, enter the terms *delta*, *aurora*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: ngaitahutourism.co.nz – stuart mclauchlan

9 Comments

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Aurora/Delta : Richard Healey on the [SOON departing] CEO

At Facebook:

grady-cameron-delta-ceo-newshub-co-nz-detail█ For more, enter the terms *delta*, *aurora*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

Posted by Elizabeth Kerr

This post is offered in the public interest.

2 Comments

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DCHL/Aurora/Delta ‘PR fashion statements’ fb DCC rates increases

Otago Daily Times Published on Dec 11, 2016
Aurora Energy to implement review’s recommendations
A report on beleaguered Dunedin City Council-owned companies Delta and Aurora has called for a major shake-up to the way the companies are run.
[—Aurora had been guilty of placing too much emphasis on providing dividends to the council and keeping debt levels under control as opposed to investing in the network.]

Deloitte review report – Aurora Energy and Delta Utilities (PDF, 1.7 MB)
Review of Aurora Energy Limited/Delta Utility Services Limited – Network Safety Concerns.

What Shocks.

If the Otago Community has a BILLION OR SO DOLLARS WORTH of network replacements owed to it, but for the pleasure the Community must pay these sums Again —as well as having to meet the not insubstantial cost of new build facilities across the growth-focused districts of Central Otago— with the self-congratulatory psychology of the Companies and INDIVIDUALS running the Dangerous and Degraded Aurora/Delta power network, stringing along the bumbling Dunedin City Council as OVERLORD (meanwhile running its ‘static’ city)…….. exactly how does that affect DUNEDIN RATEPAYERS, do you think. [DCC steered by “SpongeBob” running the holding company; the mayor inane factotum to the GOBs.]

So yeah, if there’s no word yet (?) on how the INDIVIDUALS RESPONSIBLE for constant rates increases (exceeding New Zealand’s rate of inflation) will be cleaned out financially themselves (along with their private trusts), with jail sentences to serve…….. Then you stand to be OUTRAGED by anything these knaves are saying.

We can’t call them liars.

But think about what these immoral money stealing mongrel-individuals are costing us. You are being robbed, mercilessly, repeatedly, over and over. Public funds through your rates have gone out both front and back doors in almost limitless fashion. The male mafia have been in your pockets doing what they like —across nefarious deals and rorts for “the past 25 to 30 years”.

You have been fully violated, the power network you rely on is completely stuffed. ‘They mongrels’ are not simply incompetent.

Personally, you bear the price; your extended family and descendants pay the price. ‘They mongrels’ each buy an expensive house or three in Queenstown Lakes, they live off the spoils, in style —while you and yours, your businesses and community run desperately out of hope for better times. Clearly, the Bad are being replaced by more of the Bad with unedifying track records.
Same, same again.

Otago Daily Times Published on Dec 12, 2016
Delta whistleblower Richard Healey
Mayor Dave Cull said the whistleblower, Richard Healey, had been largely vindicated. The poles network was not as safe as it should be.

Newly-appointed chairman Steve Thompson [ex Deloitte head] said chief executive Grady Cameron would not be sacked as a result of the failings identified in the report, as he had confidence in his leadership. “I think he’s done a good job in difficult circumstances.”

### ODT Online Tue, 13 Dec 2016
Shake-up agreed for Delta, Aurora
By Vaughan Elder
Dunedin City Council-owned companies Delta and Aurora are in for a major shake-up. The planned changes come as a result of recommendations included in a review by consultant Deloitte into Delta/Aurora network safety concerns, and in particular accusations Aurora dangerously mismanaged its electricity network and left thousands of poles to rot. The shake-up would involve having separate boards and chief executives for the two companies and introduce a more proactive approach to maintaining the network. After the review, commissioned by Dunedin City Holdings Ltd, was released yesterday, Mayor Dave Cull said the changes could have a significant financial impact on the council, resulting in rates increases.

“I don’t believe it’s unsafe, but we just need to do more work on getting the infrastructure to a better level than it currently is.” –Steve Thompson

Mr Healey said he was satisfied for the most part with the report, but not with the response from Mr Cull, DCHL chairman Graham Crombie and Mr Thompson, who he said were all still trying to minimise the extent of the problem …. Mr Thompson’s claim the network was safe and his continued confidence in Mr Cameron were “mind-boggling”, Mr Healey said.
Read more

bill-english-stuff-co-nz-1Brief me, Paula.

—Without a Safe and Secure power supply for Otago, new Business Development, Tourism and Productivity are severely impacted, Prime Minister.

Who is responsible?
—Dunedin City Council, sir.

Agh, that lag Cull.
—He hasn’t mentioned climate change this time, sir.

█ For more, enter the terms *delta*, *aurora*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Images: stuff.co.nz – Richard Healey | Bill English PM

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Deloitte report released #Delta #Aurora

Updated post
Mon, 12 Dec 2016 at 11:56 p.m.

aurora-report [supplied by DCC]

Deloitte’s Steve Thompson – appointed to the Delta and Aurora Boards in 2015 – is to head two (new) separated (“armslength”) companies.

Grady’s future is between the lines.

2016-12-13-01-10-57

Monstrous understatement from our Mayor Cull:
“The poles network was not as safe as it should be.” ….LOL

Dear god, there appear to be a few capital raising issues to curtail the service delivery promised. Further, Dunedin City Council will receive the wrath of two other councils…. Let’s not be naive about the extent of problems with the DANGEROUS NETWORK. This is not a POLES ONLY exercise. And where, oops, have we seen Steve Thompson before, Deloitte and Otago Rugby governance. South Auckland pokie bars, ORFU, anyone ?

An inquiry into thousands of failing power poles has recommended major changes to the lines companies involved. Thousands of rotting power poles are due for replacement in Otago. (RNZ)

### radionz.co.nz 38 minutes ago
Rotting power pole whistleblower vindicated
By Ian Telfer, Otago-Southland Reporter
The Dunedin City Council-commissioned inquiry was one of three started in October after a whistleblower revealed almost 3000 power poles in Dunedin and Central Otago, managed by Aurora Energy and Delta, needed urgent replacement. Councillors debated Deloitte’s report, which covered the scale of the problem and management, for more than two hours. The report recommended health and safety upgrades and for Delta and Aurora’s board and management to split. Mayor Dave Cull said the whistleblower, Richard Healey, had been largely vindicated. Mr Healey accused the management of not understanding the scale of the problem and of not seeing just how dangerous it was. Deloitte found serious systematic problems in the network.
Read more

[Audio] Inquiry into failing power poles recommends big changes  (3′01″)
RNZ Checkpoint (12 Dec 2016)

█ For more, enter the terms *delta*, *aurora*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

Posted by Elizabeth Kerr

This post is offered in the public interest.

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Deloitte report pending —Public Notice at ODT | Facebook entry

ODT 9.12.16 (page 20)

odt-9-12-16-public-notice-p20

Facebook: Richard Healey

richard-healey-facebook-9-12-16

Wed, 7 Dec 2016
ODT: Delta, Aurora report for release by Monday
A report on under-fire Dunedin City Council-owned companies Delta and Aurora is expected to be made public by Monday. Mayor Dave Cull said he hoped the report could be released before that day, following a non-public council discussion on the issue that lasted well over an hour yesterday. Dunedin City Holdings Ltd director Keith Cooper faced a grilling from councillors when he gave them a “progress report” on an investigation by consultant Deloitte into the companies. Cont/

Sat, 3 Dec 2016
ODT: Report discussion behind closed doors
Discussion of a Deloitte report on troubled council-owned companies Aurora and Delta on Tuesday will be behind closed doors, and it is uncertain when they will make it into the public arena. Mayor Dave Cull said the report was not finished yet, despite predictions of an early December completion date. It will be discussed by the Dunedin City Council on Tuesday in a non-public session. Mr Cull said the Dunedin City Holdings Ltd board got a progress report on the investigation yesterday. The board would pass on that report at the council meeting on Tuesday. The agenda for the meeting noted discussion of the report would be in a non-public section of the meeting as “the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably  to prejudice the commercial position of the person who supplied or who is the subject of the information”. As well, the withholding of the information was necessary to enable the council to “carry out, without prejudice or disadvantage, commercial activities”. Cont/

Posted by Elizabeth Kerr

This post is offered in the public interest.

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Delta/Aurora : Nobody’s willing to call it after misrepresentations

### ODT Online Wed, 7 Dec 2016
Delta, Aurora report for release by Monday
By David Loughrey
A report on under-fire Dunedin City Council-owned companies Delta and Aurora is expected to be made public by Monday.
Mayor Dave Cull said he hoped the report could be released before that day, following a non-public council discussion on the issue that lasted well over an hour yesterday. Dunedin City Holdings Ltd director Keith Cooper faced a grilling from councillors when he gave them a “progress report” on an investigation by consultant Deloitte into the companies.
Read more

Posted by Elizabeth Kerr

This post is offered in the public interest.

3 Comments

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Delta/Aurora : The Dirty Twist —EXTREME Misrepresentation by Delta, E tū union & staff reps

Received from Richard Healey
Friday, 2 December 2016 11:36 p.m.

Lies, damned lies and Delta

Today a media statement, produced by Delta senior management, representative staff and the E tū union representative, was released. It is important to stress at this point that I’ve been told that the vote to release was supported by a minority of the Delta workers present. I’m told that 15 hands went up in favour out of the hundred people present.

The decision to release was made by the E tū union organiser present. Are your alarm bells ringing yet? Mine are.

Here’s the bit most people will miss:

Delta senior management, representative staff and the E tū union representative have agreed a joint statement that reflects the belief of all concerned,

You will notice that it does not say that the meeting authorised the release – yet it claims that it reflects the belief of “all concerned”. I’ve had plenty of phone calls from “all concerned” and they have stated categorically that it does not reflect their beliefs, read on…..

Here’s the release:

2 December 2016

Media Release

Joint statement following meeting of Delta management, staff and E tū union

Yesterday, meetings were held with representatives of staff, senior management of Delta, and E tū, the union. Similar discussions are planned involving Central Otago-based staff.

Discussions were held concerning the condition of the Aurora Energy electricity network and how risks are being managed for staff, contractors and the public. All parties are in agreement that it is in everyone’s interests that we work together productively as Delta carries out a significant uplift in capital and maintenance work across the Aurora Energy networks in Dunedin and Central Otago.

Delta senior management, representative staff and the E tū union representative have agreed a joint statement that reflects the belief of all concerned, they commented:

“Firstly, that the Aurora Energy network needs significant asset renewal work and that the age and condition of existing assets presents a higher level of risk than would be preferred.

RJH: That statement sounds suspiciously like an admission that there is a REAL PROBLEM – not merely a problem of perception, as Grady Cameron has consistently maintained. Let us hear that admission from Grady himself, not from a union organiser masquerading as a PR consultant doing the softened story routine. Come on Grady…we are all waiting….

None of us can now change past decisions made over decades about maintenance and investment in the network.

RJH: Man up Grady. My view is simple, it is not credible for you to say that “None of us can now change past decisions made over decades” when you are the person who, for almost all of the last decade, has been key in making those frankly appalling decisions. I’m sure that it would be great for you to be able to brush your past actions under the carpet. Wake up mate, it’s not happening.

We can change the way we manage assets and have already started doing that, however it will take time to address all the issues. Staff and management are committed to working closely together to complete the upgrades with a high level of safety caution and with public safety foremost in our minds.

RJH: Really? You’ve started doing that? Let’s review how that program is going. Your program director just quit, your General Manager asset management just quit, I see an ad today for a new manager of strategic planning, hmmm…. Poles replaced by the “accelerated” program to date? Zero, zip, nada – and counting.

“Secondly, that the health and safety of Delta staff and the public who live around the Aurora network is the primary responsibility of the company, DCHL and the DCC who ultimately own the network.”

RJH: Ah ha, the people who received a detailed report on this problem in 2010, a report that listed harm to staff and the public as potential outcomes of doing nothing, yeah, I feel [there] is a credibility problem here, how about you??

“Thirdly, we would like the public to know that Delta workers are doing their best to continue security of electricity supply and public safety. There may be more periods of planned power outages as we undertake the network upgrades and ask the public to work patiently with us.

RJH: finally, something we can agree on.

“Fourthly, that members of Delta’s technical staff who have hands-on knowledge of reported faults and risks will be engaged in how the company describes events publicly to the extent that is reasonably possible given media constraints and in the knowledge that detailed investigations often take time.”

RJH: Wow, that’s a hard hitter, we will talk to staff, but you know how it is with media deadlines. And those reports can take sooooo looooong to write. I wouldn’t be surprised if everyone has forgotten about the problem by the time we get around to reporting on it… in an email… to ourselves.

“Finally, Aurora Energy, and Delta staff, have agreed to work closely together on an enhanced public safety advertising campaign which will start in the near future. This will be about further informing the community about safety around electrical installations, particular hazards that we are working to resolve and general education about safety around the network.”

RJH: What? You’re going to tell people that high voltage lines on the ground really are a danger? Three cheers!!

For media enquiries, please contact:

● Mike Kirwood, Organiser, E tū, 027 591 0038

● Matt Ballard, General Manager Capability and Risk, Delta, 027 703 7044.

Here’s my view.

The majority who did NOT vote to release this statement have not been heard. Their voices are apparently worth nothing. Their voices are, in real terms, valued by Delta as much as their lives. And I think that is not a whole lot.

I believe that the management whom the minority of their colleagues are prepared to ‘work with’ have, for years, knowingly sent these guys to work on an unsafe network with no intent to make it safe…in fact their inaction made it less safe, day by day, year by year.

They have instructed these workers to not apply do not climb tags.

They have manipulated data, the Xivic debacle, on unsafe structures with the effect that the true number of unsafe structures was hidden.

They have failed to investigate asset failures appropriately and often not at all.

They have consistently denied their own workforce access to the information it needs to make decisions which truly are the difference between life and death, for workers and the unwitting public alike.

These same managers were simultaneously accepting awards for exceptional management performance!

Roger Steel must be spinning in his grave.

Shame on you all.

Finally, a word from Delta’s glorious leader at, believe it or not, zeroharm.org.nz on October 19th this year!!

grady-cameron-annual-report-2016-zeroharm-org-nzZeroHarm [click to enlarge]

Source: FB post

Posted by Elizabeth Kerr

This post is offered in the public interest.

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Oi Grady— “It’s Us, Delta’s Electrical Workforce, unanimously!”

wild ride [cheatsheet.com]

Received from Richard Healey
Thu, 1 Dec 2016 at 10:15 a.m.

https://www.odt.co.nz/news/dunedin/dcc/deltas-explanations-farcical-staff-believe

After a month of silence, the operational staff at Delta have finally spoken out. Despite massive pressure to remain silent they have come clean on their concerns. More than a hundred staff, more than half non-union, gathered yesterday over their safety concerns. The union asked their members to vote – unanimous support for the motion. The non-union staff asked that their vote be taken – unanimous support for the motion.

Here are some verbatim clips from a message that they sent to Grady, the board, the council and the rest of Dunedin:

“much of the network is now in a run-down state”…..

“it is time Aurora and Delta management admitted there are safety issues on the network”….. 

“Delta needs to ensure, through talking to the workers involved, that information they release to the media about faulty equipment and safety issues is accurate and factual, something which has been sadly lacking so far”….. 

“They need to…… surround themselves with the best people to plan and prepare for the massive task ahead.”…..

“To continually blame the problems and safety issues on an aging network when we all know the problems have arisen through lack of maintenance, lack of planning….. is quite frankly farcical.”

“the council needs to begin an inquiry, as to why the company structure it set up, and the management of those structures has led to such a prolonged period of poor maintenance and a lack of capital investment.”…..

“our greatest concern is safety for the public, followed by their security of supply we believe the continual denial of these problems is preventing progress for resolving the issues and not working in the best interest of the public and workers alike.”

Grady’s response is: “We have regular communications with our staff, but we can always do better and one of the things we will be discussing is how we can better meet their needs for better information.”

That’s why you’re the boss Grady! I would have read that letter as a damning indictment on your leadership and a stinging criticism of what appears to me to be an unconscionable attempt to cover up the failings of the network you operate at the expense of your workers’ safety and safety of the public. You on the other hand see it as a polite call for more information.

Get Gyroscope Johnson to turn down the speed on the Delta spin machine, I think that you’re all getting really giddy.

Apparently you’re meeting with a group to discuss this today. Will Derek Todd, the now ex General Manager of Asset Management be going? I understand from your email late last night that his resignation is with “immediate effect”.

[ends] FB post

O when the Saints go marching in
When the Saints go marching in
O Lord, I want to be in that number
When the Saints go marching in

There is by now a TEAM of whistleblowers plugged in at Delta, with Richard Healey determinedly positioned as external generator.

How DIABOLICAL At Work does it have to get before unionised and non unionised staff band together to thump their Boss IN WRITING. But the story does not end there.

More insights arriving daily…. on how Grady Cameron Is Not Coping as Chief Executive.

This, as Public Knowledge turns to Public Quandary :
WHY IS Mr Cameron still ma-LINGERING at the sinking helm.

Then too pull out your black armbands in memory of the company directors whether honest and law abiding or in the Vastly Bleak alternative. Examine, if you will, the nasal hairs of DCHL’s SpongeBob Crombie, wiping the floor as *** controller of all things DCC, temporarily.

spongebobs-hiccup-giphy-comspongebob’s hiccup [giphy.com]

T H E ● N E W S
The Otago Daily Times has worked strenuously to raise critical public awareness of Delta/Aurora’s dangerous and degraded power network:

1.12.16 ODT: Delta’s explanations ‘farcical’, staff believe
30.11.16 ODT: Delta staff want answers
30.11.16 ODT: Pole request not ‘overly reactionary’
28.11.16 ODT: Aurora in firing line over policy
28.11.16 ODT: Delta payments to stadium queried
26.11.16 ODT: DCC takes pole risk seriously, CEO says
26.11.16 ODT: The questions we asked Delta/Aurora
25.11.16 ODT: Cameron cancels Delta’s end-of-year functions
25.11.16 ODT: Central Otago council tackles Aurora over poles
23.11.16 ODT: Delta/Aurora ‘in good hands with advisers’
22.11.16 ODT: $16,000 spent on consultants
21.11.16 ODT: Leaked surveys show Delta workers’ concern
17.11.16 ODT: Delta denies 6600V danger
12.11.16 ODT: Every day at Delta a ‘storm’
12.11.16 ODT: Network ‘decayed, neglected’
11.11.16 ODT: Delta/Aurora board query for DCHL
9.11.16 ODT: Delta ignored warning
2.11.16 ODT: Aurora’s chief told to ‘man up’
1.11.16 ODT: $30.25m to replace poles
31.10.16 ODT: $30m fast-tracked to replace poles
29 10.16 ODT: Crombie: heads could roll
29.10.16 ODT: The rot must stop
29.10.16 ODT: Hoping husband did not die in vain
29.10.16 ODT: Warned, in black and white
28.10.16 ODT: Criticism for Cull on poles approach
26.10.16 ODT: Delta, Aurora subject of three investigations
22.10.16 ODT: Call for heads to roll at Delta
22.10.16 ODT: Worksafe starts looking into Delta
21.10.16 ODT: Fears poles could kill

xakyxak Uploaded on Jul 26, 2006
Louis Armstrong – When The Saints Go Marching In

Posted by Elizabeth Kerr

This post is offered in the public interest.

8 Comments

Filed under Aurora Energy, Business, Central Otago, Corruption, DCC, DCHL, Delta, Democracy, Design, Dunedin, DVL, DVML, Economics, Education, Electricity, Events, Finance, Geography, Health, Hot air, Infrastructure, Media, Name, New Zealand, OAG, Ombudsman, People, Perversion, Pet projects, Politics, Project management, Property, Public interest, Queenstown Lakes, Resource management, SFO, Travesty, What stadium

Delta #EpicPowerFail 7 : Kyle Cameron —The Money or the Bag?

its-in-the-bag-with-selwyn-toogood-pinterest-com-tweaked-by-whatifdunedin

Received from Christchurch Driver [CD]
Wed, 30 Nov 2016 at 10:21 a.m.

>> Like most of Dunedin, in the last fortnight your correspondent has been looking with equal parts of fascination and horror at the torrent of deferred maintenance disasters and associated dissembling from Delta that Vaughan Elder of the Otago Daily Times has wrought upon Aurora. Mr Elder is detonating “aged hand grenade” potheads on an almost daily basis. Delta is surely beginning its death dance.

If readers think that “death dance” is too strong a term and your correspondent is a pothead of a different type, bear in mind the killer statistic revealed when last week Mr Elder publicised the results of Delta’s staff survey : 34% of staff thought that management was “honest” which, put another way, meant that two thirds of the staff considered the management dishonest. Given the preponderance of managers at Delta, this means even some of the managers considered themselves dishonest ! When the managers of an organisation are confident that the management is dishonest, then it is definitely time to do something about it…. However, we can be sure that Deloitte are not going to do anything about it by reporting to DCC what is obvious to all readers of the ODT and What if? : That the Delta and Aurora directors are either corrupt or incompetent to the point of criminal liability under Health and Safety legislation. (Only the first in a long list of fundamental director defects). Mr Crombie can spout excuses all he wants about Deloitte’s alleged “forensic expertise”, the issue is not about forensic expertise but independence and integrity.
Your correspondent has found that accountants’ ethical considerations and field of interest stops precisely at the door of whoever is paying their bill.
Lawyers have a more muscular process and even many lawyers who operate at, shall we say, the barely acceptable margins of their profession have a healthy regard for the disciplinary processes for unethical behaviour. Added to that, there are a number of lawyers available who view taking other lawyers to task as a form of sport. Yes before you ask, your correspondent has seen this in action, and there are regularly reported cases of lawyers being punished by the Law Society.
What your correspondent has not seen, is one accountant taking action against another, or any recent examples of accountants being censured by their professional body. Accountants policing their own ? That won’t work – the cost/benefit is all out of whack. But what we have here is not just one accountant looking the other way. It is the quadruple accountant play for maximum obfuscation and back scratching. One accountant, Mr Crombie (The Godfather) has carefully selected another of the brotherhood, a young go-getter, Kyle Cameron, wanting to make his mark in the Dunedin network (Tartan Mafia if you will). The Godfather carefully explains the rules of the game. The young go-getter knows there may be some short term consequences to him but understands that he will become a corporate career corpse if the rules aren’t followed. The go-getter will question the ‘change manager’ at the bottom of the play, Matt Ballard (Capability and Risk), a former Deloitte brother and member of the tartan clan. The young go-getter will hear no evil, see no evil, and most importantly, find no evidence of deliberate underfunding of the network from 2007 to 2016. That now protects the ‘older’ accountant, the sulphurous Stuart McLauchlan. The go-getter, will report that all is under control, the issues are not new and have been known for a long time. It was just a dreadful and unfortunate coincidence that whistleblower Richard Healey resigned and “some unfortunate publicity” meant it was timely to reveal Grady Cameron’s secret plan to spend $30M on replacing poles. ‘Grady’ will be gently chided for keeping this plan so secret that no one else knew about it and it wasn’t actually in the Long Term Plan, but you know, can’t make an egg without breaking an omelette. To diffuse that particular wet bus ticket, ‘Grady’ will also be commended for his vision and determination to create a safe network out of an aged one. Nothing less should be expected of a Deloitte Young Energy Executive of the Year. (Shameless plug for Deloitte also included).
The villain of the piece will be that Bad Man, John Walsh. He neglected to properly fund the network from the 1990s until his departure in 2009. It is, most definitely, All His Fault.

It hardly needs to be said that what is needed here is not Kyle Cameron, but a lawyer or former judge, someone with some real forensic cross examination talent, who levers the facts from liars and dissemblers every day. Someone with no ties to the incestuous and stifling Dunedin mafia.

However, Mr Crombie is correct that Deloitte does have “forensic” experience – from a besieged client perspective – and that experience is very useful in subtle engineering of the terms of reference, not asking relevant or difficult questions and indulging in Key-style vagueness. Deloitte specialise in appearing to provide a report that involves some gentle chiding, and wet bus tickets, but protects the client from further scrutiny.

In the event Kyle Cameron is the mouse that roared, and actually produces a factual report detailing the disgusting complicity of the directors who created a major public safety hazard by deferring essential maintenance to allow unsustainable dividends to Council, it will be amended by his superiors at Deloitte who have a very simple choice. Do Deloitte want to continue to receive lucrative work from Council, or do they provide a truthful report ? Mayor Cull will do almost anything to avoid ratepayers knowing that they are facing imminent and large de facto rates increases in the form of exponential lines charge increases ….because, huge amounts of Aurora line charges have been squandered on bloated and self-interested management, failed property deals and of course, paying for the stadium, over many years, and for many years to come.
The Crombie and Cull playbook 1 is to get malleable and weak individuals to say what you tell them to, hacking and modifying the facts to suit. Ratepayer funds at risk ? – a trifle as light as air ! What is important is that Mayor Cull and his council’s dividend drug habit is not exposed.

>> All right, readers, stop thinking that someone put genetically modified aggression supplements in the Bells ! Proof of these bald statements you say? Very well, here is the proof….  Until very recently a firm of property management consultants completed Building Warrant of Fitness inspections for the City. Now the firm had a sudden change of ownership recently, which may or may not have had something to do with the “non-voluntary” (careful words needed here readers) ! departure of an individual from the City, not unrelated to someone at the firm, at around the same time.

It appears that the firm may have lacked the necessary, ahem, independence or distance to enable them to provide, shall we say, a more accurate picture of the Building Act compliance status of ratepayer-owned facilities, including the Dunedin Town Hall and Wall Street Mall. When the new owners of the business produced their Warrant of Fitness report this year on those facilities, there was a list – a very long list – of 360 fire rating defects in Wall Street alone. These fire rating defects and other faults dated back to when the buildings were constructed in 2008 and 2011.

(By way of confirmation, If ratepayers care to check the publicly displayed Building Warrant of Fitness at Wall Street they will find there is no certificate, and we understand there are recently lodged official information requests to get to the bottom of this matter).
The establishment, allegedly very unhappy with this burst of unpleasant fire rating revelations from the new and improved firm, may have said words to the effect of “We have 50 buildings that need inspections ! Do you understand what we mean?” …. “We want you to issue the WoF on the basis that we will get around to do some of the work when we feel like it, when we are good and ready and not before !” (We could call this the Aurora option….). The response from the new firm was basically, “We have standards and professional obligations, and we can’t certify something on that basis as you have a record of ignoring previous identified serious faults.” We understand the establishment was then invited by the new firm to employ a specialist Fire Engineer to review the list and the new firm’s report.

So what did the establishment do ? Did it immediately start work on fixing the problem ? Of course not, it sacked the new firm from all work for having the cheek to put in writing things that were deemed “inconvenient”.

Kyle Cameron, what will it be ?

Truth or Consequences?
The Money or the Bag ? (To dispose of the Delta’s directorial corpses).

Dunedin is watching and waiting.

[ends]

Posted by Elizabeth Kerr

This post is published in the public interest.

*Image: pinterest.com – ‘It’s in the Bag’ with Teneke Stephenson (formerly Bouchier) and Selwyn Toogood, tweaked by whatifdunedin [Kyle via Deloitte]

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Aurora/Delta (same crew!) rips off Central Otago farmers and hort industry producers

Grady Grady Grady, tell us you can do something right, something straight, anything!? For an award-winning (Deloitte!) bright young executive you’re living a Very Slow Death.

Save your health, man, and OURS, by writing that letter of resignation with immediate effect. We’ll feel better if you don’t carry on. Please KNOW that we have to pay the full extremes of YOUR Total Cost To Us and the companies …. “thinkdelta” -of Us- while you’ve got your feet up at home.

home-detention-anklet-stuff-co-nz

Penury. Jail. Is worse.

Aurora Energy has been warned by the competition watchdog over using its market dominance to force farmers to use its sister company, Delta, as a contractor.

If Aurora was found guilty of breaching the Act, it could be fined more than $10million or three times the commercial gain resulting from the breach.

### ODT Online Mon, 28 Nov 2016
Aurora in firing line over policy
By Vaughan Elder
….The Commerce Commission warned the under-fire company its policy, which forces farmers in the Cromwell and Clyde area to give work to Delta when installing irrigation which had to be connected to its network, could be in breach of the Commerce Act 1986. The commission decided not to take further action, saying the  cost of proceedings could be “disproportionate to the harm”, but told Aurora to be more careful in future. “While the commission does not intend to take any further action against Aurora, you should be aware that we had real concerns about Aurora’s conduct; and our decision to issue this compliance advice letter does not prevent any other person or entity from taking a private action through the courts.”
Read more

Received from nick
2016/11/17 at 5:49 pm
How does the DCC stand with its Aurora company charging Central Otago orchardists prohibitive lines charges for seasonal irrigation pump connections? It’s been this way for years.
Orchardists so close to renewable hydro energy from Roxburgh and Clyde dams are burning imported fossil fuels to power their pumps because it’s cheaper.
It is absolutely absurd to see the big fuel delivery truck and trailer units filling up the orchard diesel tanks each month.
Any comments from the Council’s ethical investments committee?

Received from nick
2016/10/21 at 7:00 am
Another chapter in this company’s dysfunctional management and governance story.
If it was not continually propped up by the guaranteed and lucrative income stream of Lines Charges, it would have disappeared years ago.
As an aside, Aurora decided in 2013 to exclude private electrical contractors from connecting new irrigation pumps to its Central Otago network – simply because it was not getting any of this work (unable to compete with private enterprise).
The Commerce Commission began an investigation into Aurora’s breach of the Commerce Act over this matter, but Aurora retracted from this policy in April 2016 before the ComCom had completed its determination. They remain on notice, with a warning over this matter.

W O R T H W H I L E ● R E A D
2.11.16 ODT: History shows power to the people lost
Delta’s woes will be shared with Central Otago, writes Nick Loughnan.

aurora-bovver-boys-29-11-16-1Douglas Field 29.11.16 [click to enlarge]

█ For more, enter the terms *delta*, *aurora*, *dchl*, *grady*, *cameron*, *crombie*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: stuff.co.nz – home detention unit

7 Comments

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The EVIL Blend: Delta, Aurora, Fubar Stadium, Our Rates

Received from nick
2016/11/22 at 11:06 pm

DELTA
Think Rundown Infrastructure
Think Pigs in Troughs
Think High Living at Ratepayers Expense
Think Cynical PR Spin
Think Appalling Attitude to Public Safety
Think Expendable Linesmen
Think Bloody Hard about What Comes Next
Think Richard Healey has Shown Us Up
Think the Game Might Be Over.

****

Angina attack.

Oh my lord! Nooooo. The DCC can’t be ‘surprised’ after ALL these years (each and every year) of information slung at it about ongoing stadium spending and subvention payments (particularly by the likes of Calvin Oaten!), Not after the (effortless?) Stadium Review…. Which planet are you on, DCC ?

Some backside covering ERUPTS at ‘city hall’.

Then there’s poor Grady Cameron, he’s someone just not coping with Questions these days. Mr Cameron has turned into quite the veritable rapidly depreciating, $417M cracked record. After the ‘concretising’ Drifting event, let’s see him Put Out To Pasture at the Stadium —once DVML restores the hallowed Otago Rugby turf, of course.

“It is patently clear that Delta/Aurora/Dunedin City Holdings Ltd’s priority over the last few years has been to support a rugby stadium at the expense of public safety by way of subsidies/subvention payments.” –Bev Butler

### ODT Online Mon, 28 Nov 2016
Delta payments to stadium queried
By David Loughrey
The Dunedin councillor charged with overseeing Delta and Aurora says the beleaguered companies should be concentrating on their business and health and safety before pouring money into the Forsyth Barr Stadium. That came after it was revealed the companies have paid $29.9 million in subvention payments to the stadium in the past five years. It also appears a Deloitte investigation into the companies will consider the payments issue.

“In no way should people’s health and safety be compromised because we’re trying to pay for a stadium.” –Cr Mike Lord

A Local Government Official Information and Meetings Act (LGOIMA) request from stadium critic Bev Butler, passed to the Otago Daily Times, showed the extent of the payments. It also showed Delta had paid $392,499 on its corporate suite and other costs at the stadium since 2010. The details of the spending come after weeks of criticism of the companies in which it has been revealed infrastructure has not been maintained, leaving thousands of power poles compromised and potentially dangerous.
Read more

ODT: Stadium drifting track build ‘ambitious’
The turf at Forsyth Barr Stadium in Dunedin handles 1600kg scrums with ease but it is now bearing a load 500 times heavier….

On the issue of the corporate suite, Mr Cameron said like any large business, “from time to time we host our customers to strengthen the working relationships”. (ODT)

So, Grady:
Question, you splurge Many Dollars on your main customer – Aurora Energy – by entertaining them at the Stadium? The champagne lifestyle. On Our Money.

Related Post and Comments: [THE CHEAPIE INVOICES]
22.11.16 Delta/Aurora spend-up at Stadium —Degraded electricity network, Us ? (said the GOBs) #LGOIMA #Rugby

█ For more, enter the terms *delta*, *aurora*, *dchl*, *grady*, *cameron*, *crombie*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

Posted by Elizabeth Kerr

This post is offered in the public interest.

cull-evades-the-question-again-18-11-16Douglas Field 18.11.16 [click to enlarge]

11 Comments

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Delta poles : CODC beats DCC to the safety gun, SO not surprising

Tomorrow’s ODT….

At Channel 39 News this evening editor Barry Stewart says:

“Central Otago District Council has turned up the heat on Delta over unsafe poles. So they’re calling for a report on all their endangered poles, and they want to get that sorted.”

Dave Cull, helmet [odt.co.nz]Well. It’s not like DCC is nearly so proactive. Mayor Cull’s dwindling idea of Leadership does not accord with Social Responsibility. What. No, at Dunedin there is only THE PERCEPTION of a problem, worth $30M.

Posted by Elizabeth Kerr

This post is offered in the public interest.

31 Comments

Filed under Aurora Energy, Business, DCC, DCHL, DCTL, Delta, Democracy, Design, Dunedin, DVL, DVML, Economics, Finance, Geography, Health, Hot air, Infrastructure, Media, Name, New Zealand, OAG, Ombudsman, People, Perversion, Pet projects, Politics, Project management, Property, Public interest, Resource management, Tourism, Town planning, Travesty, Urban design, What stadium

Bullswool at Delta never ends

grady-cameron-delta-ceo-newshub-co-nz-detailFar from being bullet proof – the credibility is by now well and truly SCORCHED and in tatters. Time to walk, or be pushed. A liability to all power users in Dunedin and Central Otago.

It’s not just about the poles. The Aurora Energy electricity network, managed by Delta Utility Services, is degraded and downright dangerous.

“I rejected the claim that shareholder [Dunedin City Council] demands were impacting safety outcomes.” –Grady Cameron (email)

### ODT Online Wed, 23 Nov 2016
Delta/Aurora ‘in good hands with advisers’
By Vaughan Elder
Aurora Energy chief executive Grady Cameron was told to keep his head up and “not get too stressed” as accusations mounted over rotten power poles. The email exchange between Mr Cameron and an unnamed person from another lines company was one of a number of documents provided to the Otago Daily Times after a Local Government Official Information and Meeting Act request. The short exchange on October 21 came only days after former Delta worker Richard Healey went public with his concerns, setting off a chain of events which culminated in multiple investigations and an accelerated plan to replace ageing poles.
Read more

34% of staff thought senior management were honest and straightforward in their dealings with staff. (Which is 19 percentage points below average) –The Survey (Cerno)

Spotted ….allegedly, ‘loud-mouthed’ and under the influence in Dunedin’s main street the same day Richard Healey went public…. the executive cares so much for the companies, the staff, and the general public. Epitaph to a young fool with no management expertise or health and safety learning.

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

Posted by Elizabeth Kerr

This post is offered in the public interest.

6 Comments

Filed under Aurora Energy, Business, DCC, DCHL, DCTL, Delta, Democracy, Design, Dunedin, DVL, DVML, Economics, Finance, Geography, Health, Hot air, Infrastructure, Media, Name, New Zealand, NZRU, OAG, Ombudsman, ORFU, People, Perversion, Pet projects, Politics, Project management, Property, Public interest, Resource management, Sport, Travesty, What stadium

Delta’s PR consultant

WHEN Delta’s ‘award winning’ young executive Grady Cameron, the Delta Board – woebegone* directors Ian Parton (from 25 Oct 2012), Stuart McLauchlan (1 Jun 2007), David Frow (25 Oct 2012), Trevor Kempton (1 Nov 2013) and Stephen Thompson [Deloitte!] (1 Jun 2016) – the rotten-tooth chair of DCHL Graham Crombie, and the Mayor of City Liabilities and Risk Dave Cull FAIL to Communicate Honestly with the concerned public on Delta’s utter degradation and collapse of Our electricity network —What Do You Do ?

You send in the crows or, a PR clown.

spiro-anastasiou-senateshj-comNone other than public relations consultant and former broadcaster Spiro Anastasiou. Mr Ana-sneeze rates himself as “a strategic communications specialist with extensive experience in managing issues of public and political sensitivity”. The newest partner in SenateSHJ’s Wellington office, who heads their government relations practice. He returns to consulting “from a role leading strategic communications at the Ministry of Health where he managed the Ministry’s public information programme during the Swine Flu pandemic and was seconded to the Canterbury earthquake response in the All of Government communications role during the two and half month state of national emergency”. Ana-sneeze joined the Ministry of Health “….after more than 10 years consulting in a range of sectors where he provided strategic advice and tactical support to CEOs and senior leaders. This included specialist projects such as industrial relations and change, many with a very high public profile.” Ana-sneeze’s strength is his experience in “….building successful working relationships and a proven track record in government relations. He has excellent media and communication skills developed during a 15 year career in broadcast journalism before he entered consultancy….a native Wellingtonian [blahblah] He enjoys reading and cooking, is a keen fisherman and an enthusiastic golfer.”

Let’s see where this goes —and if Grady and Spiro darling, are to be seen golfing together or co-occupying Delta’s corporate box at the Stadium – on which we have cameras trained. It was bad enough having to secret-squirrel GPS trackers to All (excessive numbers of) company vehicles two weeks ago.

*Understatement, meaning incompetent and grossly negligent.

The Varmints:

● Delta Utility Services Ltd http://www.companies.govt.nz/co/453486

● Aurora Energy Ltd http://www.companies.govt.nz/co/471661
[Mr Thompson of Deloitte appointed 20 Jun 2016]

● Dunedin City Holdings Ltd http://www.companies.govt.nz/co/559098

Posted by Elizabeth Kerr

This post is offered in the public interest.

23 Comments

Filed under Aurora Energy, Business, Delta, Democracy, Design, Dunedin, Economics, Events, Finance, Geography, Health, Infrastructure, Media, Name, New Zealand, OAG, Ombudsman, People, Perversion, Pet projects, Politics, Project management, Property, Public interest, Resource management, Travesty, What stadium

Stadium: Fairfax business editor pokes DCC’s Fubar

### stuff.co.nz Last updated 05:00 05/03/2014
Business
Empty seats, empty pockets
By Chalkie
[…] Chalkie is concerned by a $48 million scheme to build a stadium in Petone for the benefit of the Phoenix A-League football team and its fans. From what we know of the proposal, the Hutt City Council – which means ratepayers – will be asked to contribute $25m towards building a “boutique” 10,000 to 12,000 seat arena at the southern end of the Petone Recreation Ground. […] The good burghers of the Hutt will be best placed to judge the practicalities of the scheme when further details are available, but the financial side has worrying similarities to the set-up of Forsyth Barr Stadium in Dunedin. Arm’s length charitable trust controlling the budget? Check. Private sector funding promised? Check. Troubled sports franchise as anchor tenant? Check.

[…] In Dunedin, those involved in developing the city’s shiny new covered stadium are far from universally popular after ratepayers ended up with huge debts and an ongoing headache from running the thing. The original idea, itself controversial, was for ratepayers to contribute $129m – split between $91.4m from the city council and $37.5m from the regional council – towards the $188m cost of the stadium, with private sector funding contributing $45.5m. The balance was coming from local trusts and a government grant. In the end, the stadium cost $224m and the ratepayers were hit up for $200m of that. The private sector funding was virtually zero.

You could write a book on the series of failures that left a relatively small number of people – Dunedin has a population of about 126,000 – exposed to such high costs. But even in the short version written by PricewaterhouseCoopers it seems councillors were not well informed about the project and financial controls were inadequate. The controversy still simmers. Local campaigner Bev Butler, a determined and resourceful opponent of the stadium scheme, continues to unearth aspects of the process that do not reflect well on its management. One of the latest involves the relationship between Carisbrook Stadium Charitable Trust, which runs the project, and the council.

The problem in this instance is the lack of transparency around public spending, even when there was obviously concern at the outset to keep a firm grip on it. More than that, Dunedin got in over its head and allowed itself to be the schmuck landed with everyone’s bill at the end.

Money from the council was supposed to be transferred to the trust only to pay for third-party invoices billed to the trust. An exception to this rule provided for the trust’s administration costs to be covered by a general monthly payment from the council. These “trust costs” invoices were for between $40,000 and $90,000 a month, running from July 2007 to January 2010. According to Butler’s information, which tallies with the council schedule, the payments totalled $2.2m over the period. An Official Information Act response from the council to Butler said the money was paid “to cover staff and administration costs” of the trust “to facilitate ease of administration”.

Chalkie can see that it would be easier to pay for the trust’s incidentals in this way. However, it opened a big hole in accountability for spending because the staff and administration costs detailed in the trust’s annual reports for the period total $1,068,796, more than $1m less than the sums invoiced. It is not clear from the accounts how the other $1.1m was spent because no combination of other costs – marketing, PR, fundraising or project administration – seems to come close to the right figure. Chairman of trustees Malcolm Farry told Chalkie he could provide documents to clarify the details last week, but unfortunately they were not yet available as we went to press.

There are several lessons for the Hutt City Council, including to beware of using a charitable trust as the development vehicle, to ensure private sector money is paid up front with a buffer for contingencies, and to ensure there is no ambiguity about costs.
Read full article

● Chalkie is written by Fairfax business bureau’s Tim Hunter.

Related Posts and Comments:
24.2.14 Carisbrook Stadium Trust: ‘Facts about the new Stadium’ (31.5.08)
22.2.14 Carisbrook Stadium Trust costs

Posted by Elizabeth Kerr

25 Comments

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Demand a full independent forensic audit of ORFU

That is the BEST message you can all put out there, right now.

Posted by Elizabeth Kerr

16 Comments

Filed under DCC, DVML, Economics, ORFU, People, Sport