Would CCOs lie to the Courts? #dangerous #power

Fascinating!

Tonight Richard posted another note at his Facebook page:

We know Delta feel free to play with the truth – But would they lie to the Courts?
Richard Healey · Saturday, 28 January 2017
It’s obvious that Delta think nothing of spinning the facts for you or me, think back to last December when a high voltage line fell to the ground in Tainui, burning the grass. Delta said, and I quote “it presented no danger to the public”. I guess, because no one was under it at the time it fell, you could argue that the statement is true. To me it’s like claiming that firing a gun down the Prince’s St presented no danger to the public because you didn’t hit anyone. Your call, was that a lie?

Or how about this one, when a cast iron cable termination fractured in several places showering the pavement with molten tar – “Delta marketing and communications manager Gary Johnson said the Havelock St pothead was found to have a “slow leak” of insulating material and was removed.” I suppose we could argue about the definition of slow, I’m sure the bitumen that came out did so very slowly – compared to the speed of light – but to characterise a failure that split a cast iron vessel many millimeters thick as a “slow leak” is disingenuous at best. Would you call that a lie?

In his second interview with TV3 Grady Cameron claimed that he wanted to talk to me about the issues that I’d raised but that I had resigned before he had the opportunity. Technically he is absolutely correct, I had resigned. What he didn’t say was that I was working out a months notice, that I was at my desk, with my cellphone on and my computer in front of me when he had me “quarantined” and removed from the office. Not only that, but he cancelled a meeting that I had been told to attend with both Grady and Matt Ballard (more about him shortly) the next day. Would you call that a lie?

The question that I’ve been considering for the last month or so is – would they lie in court?

Continues….

█ https://www.facebook.com/notes/richard-healey/we-know-delta-feel-free-to-play-with-the-truth-but-would-they-lie-to-the-courts/10156050337409848

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: Failed pothead, slow leak? – photo care of Richard Healey

Richard Healey : How Aurora’s lines killed in-calf dairy cows and some sheep

No, really.

M A N D A T O R Y ● R E A D I N G ● F O R
Y O U R ● P E R S O N A L ● S A F E T Y ● A R O U N D ● L I N E S

The following note at Facebook also includes a LGOIMA request directed to Grady Cameron, CE Aurora/Delta, and his interim reply.

Death on the Taieri
Richard Healey · Friday, 27 January 2017
Why should you care about eight dead cows and a dozen dead sheep? Let me explain… In 2010 eight cows were electrocuted on a farm on Maungatua Rd. You can read the story here. Have a close look at this photo:

The black line about a quarter of the way down from the top is 33,000 Volt powerline. The round object attached to it, just to the right of center, is the top section of an insulator that has failed. Now look carefully at this photo…

█ https://www.facebook.com/notes/richard-healey/death-on-the-taieri/10156045815054848

****

Reiteration of the SAFETY VIDEO showing at Richard’s Facebook note – please share it widely.

Fortis Alberta Published on Jun 17, 2013
Step and Touch potential
Watch what to do and not to do in the event of a power line contact.

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Related Posts and Comments:
24.1.17 Aurora Energy lines, Lindsay Rd, Caversham, Dunedin
21.1.17 Mayor ignores serious plight of DCC’s FAILED Otago power network in favour of urban cycleways and CBD
● 19.1.17 Jarrod Stewart is EXACTLY RIGHT [what would Steve Thompson know]
18.1.17 Basic questions arising for the City, unpublished by the newspaper
18.1.17 Scandal : DCC / Delta obfuscate over destruction of Heritage Rose Collection
17.1.17 Whistleblower continues campaign vs #AuroraEnergy #DeltaUtilityServices
14.1.17 DCC/DCHL responsible for failed rollout of ‘gigatown’ #dangerouspoles
13.1.17 Aurora with yet another headache
12.1.17 No Integrity | Cull’s FULL INSULT to Ratepayers and Residents
12.11.17 How to drop Crombie and the mafia from City boards
9.1.17 Letter of opinion draws wide support, view not shared by deathly DCHL
8.1.17 Otago’s dangerous electricity network —Aurora’s INCONSPICUOUS and INEFFECTIVE public safety messaging
6.6.17 Message to Aurora/Delta : Upper Clutha dangerous poles DON’T MIX with Holiday Campers

█ For more, enter the terms *aurora*, *delta*, *dchl*, *dangerous*, *poles*, *richard healey*, *gigatown*, *roses*, *grady*, *cameron*, *crombie*, *luggate*, *jacks point*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: odt.co.nz – dead dairy cows by Stephen Jaquiery, Maungatua Rd, 2010

Jarrod Stewart is EXACTLY RIGHT [what would Steve Thompson know]

At Facebook:

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Dunedin City Council-owned company [Aurora Energy Ltd] was showing signs it would return to its old ways as soon as public pressure began to lift.

ODT Online Thu, 19 Jan 2017
Claim Aurora facing $1b bill
By Vaughan Elder
The former director of Aurora Energy’s $30 million accelerated pole replacement programme says it is doomed to fail and believes the company faces a billion-dollar spend to upgrade its network. Jarrod Stewart says he quit the role last month in part because he believed the programme to replace thousands of compromised poles would be mishandled so badly someone would be injured. “I don’t enter jobs with the premise that I am going to fail,” Mr Stewart said. His claims were yesterday disputed by Aurora and Delta chairman Steve Thompson, who said they were “exaggerated” and it was disappointing he had gone public after leaving the company.
Read more

For real change to happen there needed to be a clean-out of management and the appointment of a “fixer” chief executive with an appetite for change and a willingness to make unpopular decisions.

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At Facebook:

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Whistleblower continues campaign vs #AuroraEnergy #DeltaUtilityServices

Last year’s news….

[Story/Newshub]

Back when….
Grady Cameron said on national television … “We Have A Safe Network” …
Did Grady get a tour of dangerous poles three years ago – or not ?
Was he shown just ONE pole at Green Island/Abbotsford.
Who would we rather believe.
Not Grader.

### newshub.co.nz 31/10/2016
Delta CEO fronts up on dangerous, toppling power poles
By Jendy Harper
A fortnight ago, we brought you the story of thousands of dangerous power poles which are putting lives at risk and have already been responsible for a death. The poles are the responsibility of lines company Delta and are dotted around Otago. A whistle-blower walked out on a 30-year career in electricity to speak out because he said management weren’t listening to his safety concerns. Richard Healey estimated there are 3000 power poles which need to be replaced. Today, Delta said they need to make dramatic changes and they will borrow $26 million dto replace 3000 power poles by the end of next year. Why did it take one man’s death and a whistleblower to speak out before the company acted? Delta CEO Grady Cameron finally speaks to Story.
MUST SEE Video [full Story report]

****

At Facebook yesterday:

█ Deloitte’s Aurora report (Dec 2016)

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

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Aurora with yet another headache

At Facebook:

****

****

Note this particular meat from Richard Healey’s Facebook post:
[my emphasis]

“If you have a property where the lines were built before 2001, then Aurora owns everything up to the house. The only exceptions are where the lines have been brought up to standard and a letter has been sent to the property owner transferring ownership of the lines or a prior agreement is in place. That has almost never happened in Dunedin. If you think that you have been billed, and shouldn’t have been, write to Aurora. If you don’t get redress file a claim.
If you would like to read the appropriate legislation, look up the electricity act 1992 and search for the definition of “point of supply”.
What does that mean? It means that it’s probable that thousands of Dunedin residents have been charged for maintenance to lines and poles that they do not own.”

█ Electricity Act 1992
Reprint as at 18 October 2016
http://www.legislation.co.nz/act/public/1992/0122/latest/DLM281858.html

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Letter of opinion draws wide support, view not shared by deathly DCHL

ODT 9.1.16 (page 6)

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Otago’s dangerous electricity network —Aurora’s INCONSPICUOUS and INEFFECTIVE public safety messaging

[smartphone screenshot 2017-01-08]

The advertisement (safety message!) appears at ODT Online.
Blink and you miss it!

This is what Aurora Energy puts out for You to access Public Safety information. A yellow box with some branding, lost amongst news stories within a plethora of webpages.

Did anybody read ODT Online this summer ?
Did anyone see the ad ?
Did anyone notice the weblink ?
Did anybody click on the link ?
Did anyone do up their seat belt or wear a life jacket ?
How do you stay SAFE around a dangerous power network ?
What do you look out for ?
What do you avoid ?
In an emergency, what do you do ?
What sort of emergency ?
Clear guidelines ?

Or, read as ‘So what’ from the DCC-owned company.

****

How extensive is Aurora’s public safety messaging across all available media these holidays —and typically, across a year ?

Is Aurora’s public safety messaging evolving to provide clear informational content to keep the public SAFE around the DANGEROUS and DEGRADED electricity network ?

****

The adverteaser, and the related web information (reproduced below) is at the very low end of public safety information required to prevent personal injury or death. There is little informational value beyond the obvious.

Real life scenarios you should guard against, what are they ?

Other lines companies create graphics, audio and short videos that clearly explain what to do and what NOT to do around electrical facilities and in emergency situations involving live electricity.

Not so Aurora.

This YELLOW-BLOCK commercial branding exercise is cheap, casualised, determinedly ineffective and fully irresponsible. Further, it merely links to what has been up at the Aurora website for some time, which is basic and untelling.

Here’s the Aurora Energy link and their bland factless webpage content:

█ http://www.auroraenergy.co.nz/safety/

Aurora Energy puts your safety first. We want all our customers, employees, contractors and the wider community to be safe around electricity. Always keep a safe distance from electrical equipment and take extra care when working around electricity.

You can take some simple steps to make sure that you, and others around you, know how to keep yourself safe when around electricity.
● Treat all electricity as live and never touch electrical equipment
● Report electricity faults to your electricity retailer via their faults number
● Phone 111 immediately if there is an injury or risk of a fire
● Follow safe work practice near electrical equipment
● If you see a tree that is growing near or into a power line, contact Delta to arrange pruning services
● Inform others around you of the dangers of electricity
● Be prepared in the event of a natural disaster or extended power outage.
 
Read our free guide to working safely around Aurora Energy’s electricity network (PDF) before working near our electricity network. We’re here to help and can provide you information and services to help you stay safe.
 
Our Public Safety Management System controls hazards that present significant risk of serious harm or major property damage. The System complies with the requirement of the Electricity (Safety) Regulations 2010. To report a potential hazard, please complete the Report a Hazard form or contact Delta.

****

If Aurora has conducted a full PUBLIC SAFETY CAMPAIGN IN OTAGO
across all available media – including dailies, community newspapers, schools, public libraries, council service centres, magazines, online noticeboards, radio, television, instant text messaging, flyers, billboard posters etc
—we have missed it.

It’s not ‘just’ dangerous poles and lines – it’s the condition of the other dangerous and degraded network assets (including conductors, transformers, cast iron potheads, cables, oil-filled switchgear, airbrakes etc) that the public needs to be concerned about.

Aurora Energy is NOT telling you about these : the condition of other network assets after 20-30 years of Dunedin City Council-owned companies’ inept management and criminal neglect of Otago’s power supply.

What would make the best Public Safety Campaign ?

****

The Aurora report by Deloitte made public on 12 December 2016 says:

Refer page 8 (1.5.9 Summary of Recommendations | Health & Safety), and page 31 (4.6. Health & Safety recommendations) – bolding by whatifdunedin:

The Board and management of Aurora need to adopt a more transparent approach with staff and the public. There needs to be acknowledgement of the state of the network along with detailed plans on how these issues are going to be rectified.

****

ODT 13.12.16
– “The Deloitte report did not include a detailed investigation of health and safety issues, but said risk had been increased by a lack of investment. “It is inevitable that this increases the level of risk inherent in the network that could have implications for staff and/or members of the public,” it said.”
– “Mr Cull also refrained from saying the network was unsafe, instead saying: “I don’t think it is as safe as it should be.”
– “[Richard] 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 [Steve]Thompson, who he said were all still trying to minimise the extent of the problem.”

ODT 21.12.16
– Grady Cameron: ““The accelerated programme uses additional internal and external resources to get the job done quicker. What won’t change are the safety, risk management and work practice measures we have for the safety of workers, contractors and the public.” The programme would prioritise the removal or repair of condition-zero poles close to schools, camping sites and other “high social” areas.”

ODT 24.12.16 ‘Poles spared as condition reassessed’
– “[Queenstown Lakes Mayor Jim Boult] asked Aurora to stabilise or replace condition-zero poles in the Queenstown, Wanaka and Arrowtown central business areas before Christmas.”

It’s not just about the poles.

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Related Posts and Comments:
12.12.16 Deloitte report released #Delta #Aurora
30.12.16 Hilary Calvert on Deloitte report for Aurora/Delta
6.1.17 Message to Aurora/Delta : Upper Clutha dangerous poles DON’T MIX with Holiday Campers

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

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Message to Aurora/Delta : Upper Clutha dangerous poles DON’T MIX with Holiday Campers

Four “condition zero” poles identified in Upper Clutha as needing to be replaced or reinforced before busy holiday period.

Other poles inside camping grounds identified as needing to be checked regularly by Delta staff during same period.

### ODT Online Fri, 6 Jan 2017
Problem power poles getting regular checks
By Tim Miller
Potentially dangerous power poles in Upper Clutha camping grounds are being checked regularly by lines company staff over the holidays. Before Christmas, Aurora Energy identified and checked the condition of poles in what were considered high-traffic holiday areas, such as camping grounds and parks in Upper Clutha. The company consulted the Queenstown Lakes District Council to identify the high traffic areas.
Read more

█ All 1181 condition zero poles in Otago expected to be replaced by April 2017.

****

At Facebook:

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Related Posts and Comments:
1.1.17 A successful Lines company….
30.12.16 Hilary Calvert on Deloitte report for Aurora/Delta
28.12.16 Just beginning…. inquiries into council company rogues
27.12.16 Michael Lewis : The Undoing Project —Interview… #RNZ
25.12.16 The very idea
22.12.16 What GIVES : Aurora/Delta/DCHL/DCC…Energy Safety…ComCom ??
20.12.16 Aurora/Delta : RNZ’s Kathryn Ryan with Rod Oram
16.12.16 Tim Hunter, NBR —Aurora/Delta, DCC and ComCom
16.12.16 Delta #EpicPowerFail 8 —Stuart McLauchlan : contamination, code…
15.12.16 DCHL/Aurora/Delta unravelling
14.12.16 Bev Butler queries invoices for Delta hospitality at Stadium #LGOIMA
14.12.16 Aurora/Delta : Richard Healey on the [SOON departing] CEO
13.12.16 DCHL/Aurora/Delta ‘PR fashion statements’ fb DCC rates increases
12.12.16 Deloitte report released #Delta #Aurora
9.12.16 Deloitte report pending —Public Notice at ODT | Facebook entry
7.12.16 Delta/Aurora : Nobody’s willing to call it after misrepresentations
7.12.16 Audit and Review, Deloitte
3.12.16 Delta/Aurora : The Dirty Twist —EXTREME Misrepresentation…
1.12.16 Oi Grady— “It’s Us, Delta’s Electrical Workforce, unanimously!”
30.11.16 Delta #EpicPowerFail 7 : Kyle Cameron —The Money or the Bag?

█ 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.

Hilary Calvert on Deloitte report for Aurora/Delta

ODT 30.12.16 (page 12)

Aurora – Safety webpage (detail) 30.12.16

WorkSafe New Zealand
Contact WorkSafe 0800 030 040
█ http://www.worksafe.govt.nz/worksafe

Energy Safety
Part of WorkSafe New Zealand, Energy Safety acts as the regulator for ensuring the safe supply and use of electricity and gas in New Zealand. Energy Safety is responsible for providing an effective investigation, compliance, enforcement, and conformance regime for achieving electrical and gas safety outcomes.
█ http://www.energysafety.govt.nz/

Note: On Monday 4 April 2016, the new Health and Safety at Work Act 2015 (HSWA) came into effect. HSWA repeals the Health and Safety in Employment Act 1992, with immediate effect.

‘Delta’ bovver boys by Douglas Field 29.11.16 (detail)

On 19 October 2016 former Delta manager Richard Healey went public about workplace and public safety concerns at Dunedin and across Otago via TV3’s Story (newshub.co.nz).

From 19 October through November posts and comments at What if? Dunedin, including those by Richard Healey, focused on the dangerous network, and poor governance within the council owned companies Aurora/Delta, within the council’s holding company DCHL, and within the duly elected Dunedin City Council itself [relevant trimesters].

The full extent of the dangerous and deliberately degraded network is attributable to criminal negligence and extreme mismanagement of financial resources (public funds).

The young inexperienced chief executive of the companies Aurora/Delta, Grady Cameron, has personally resisted taking any blame for the dangerous network – note, the findings and advice of the 2010 report by LineTech Consulting, commissioned shortly after Cameron’s appointment, have failed to flow into various Asset Management Plans drafted by Aurora, subsequently.

As a result of Richard Healey’s revelations three investigations were to take place:

1. Deloitte report for DCHL (released 12 Dec 2016)
2. Energy Safety (WorkSafe) investigation (no date given for release)
3. Commerce Commission investigation – industry regulator (no date given)

The courts await.

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I N ● J U S T ● O N E ● M O N T H

Related Posts and Comments:
28.12.16 Just beginning…. inquiries into council company rogues
27.12.16 Michael Lewis : The Undoing Project —Interview… #RNZ
25.12.16 The very idea
22.12.16 What GIVES : Aurora/Delta/DCHL/DCC…Energy Safety…ComCom ??
20.12.16 Aurora/Delta : RNZ’s Kathryn Ryan with Rod Oram
16.12.16 Tim Hunter, NBR —Aurora/Delta, DCC and ComCom
16.12.16 Delta #EpicPowerFail 8 —Stuart McLauchlan : contamination, code…
15.12.16 DCHL/Aurora/Delta unravelling
14.12.16 Bev Butler queries invoices for Delta hospitality at Stadium #LGOIMA
14.12.16 Aurora/Delta : Richard Healey on the [SOON departing] CEO
13.12.16 DCHL/Aurora/Delta ‘PR fashion statements’ fb DCC rates increases
12.12.16 Deloitte report released #Delta #Aurora
9.12.16 Deloitte report pending —Public Notice at ODT | Facebook entry
7.12.16 Delta/Aurora : Nobody’s willing to call it after misrepresentations
7.12.16 Audit and Review, Deloitte
3.12.16 Delta/Aurora : The Dirty Twist —EXTREME Misrepresentation…
1.12.16 Oi Grady— “It’s Us, Delta’s Electrical Workforce, unanimously!”
30.11.16 Delta #EpicPowerFail 7 : Kyle Cameron —The Money or the Bag?

█ 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.

Mobile substation Willis St, Harbourside 12.11.16 [photo: Christchurch Driver]

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta #EpicPowerFail 8 —Stuart McLauchlan : contamination, code brown and farting in church

Received from Christchurch Driver [CD]
Fri, 16 Dec 2016 at 1:04 a.m.

Your correspondent has been spending some time in airport bookstores recently, and it is hard to escape the plethora of get-a-plan-and-get-your-life-in-order books that seem to breed like unwanted spawn in such places.

While your correspondent has no truck with such boilerplate muck, he will admit to a quiet sense of satisfaction this week of some goals achieved. It is a good thing to have a goal, and a plan to get there. This year, your correspondent was disgusted by the arrogant lawlessness and simply fantastic level of self interest and waste of public funds by DCC and DCHL directors at the Noble subdivision, Yaldhurst. He made it a goal to put his shoulder to directorial posteriors and assist in the push of the dismal Delta directors into the Delta wood chipper (leased of course). Aided by some insider knowledge (what? – reveal my sources – never !) and plenty of tangential side trips, your correspondent is proud to think he has helped (in some small way) What if? and the majestic Richard Healey achieve a clean out at Aurora and Delta.

This week’s dismissal of Parton and McLauchlan is the start, and more will follow.

Mr McLauchlan’s risible statements in the ODT yesterday show your correspondent was 100% correct when he predicted that blame would be sheeted home to That Bad Man, John Walsh.

Mr McLauchlan’s arrogance was in full view with his claims that his decision to step down was unrelated to the billion dollar problem he has co-authored. Mr McLauchlan cannot admit what all of Dunedin knows – he troughed literally while lines exploded, and failed as a director. To do so would jeopardise his other sinecures, and Mr McLauchlan is nothing but self interest. Mr McLauchlan had absolutely nothing to offer the DCC, Delta or DCHL, and we should be at least grateful to Mayor Cull that the scales appear to have finally have fallen from his eyes and he sees Mr McLauchlan for what he is.

Let us not forget the most telling example of Mr McLauchlan’s invertebratedness : In the 2007 directorial decision to waste $8-9M at Luggate Mr McLauchlan’s sole contribution was : “If the other directors agree the I agree”. Not forgetting also that in the case of the Scenic Circle Dunedin City legal dispute with the JV partner, Mr McLauchlan was found by the Court to be an unreliable witness.

Mr McLauchlan is so toxic he doesn’t just need to be signposted, he is a walking talking accounting contamination.

On the subject of contamination, Kyle Cameron – stand up and take a bow, Kyle Cameron! – has made it very sure that Grady Cameron will never lead either of Delta or Aurora, by recommending that they need separate CEOs. As Mr Healey has said, the board will do to Grady what he has done to many others – disestablished their positions, creating new roles, and of course Grady will not quite have the “most appropriate skill sets” for either role. Sorry about that old chap, terribly close call of course, better luck next time– (in another continent please).
Grady, you have just been right-sized.

Another right-sizing would be to appoint Kyle Cameron to the Aurora board, and remove former ORFU/Highlanders director Mr Thompson with links to the $5M ORFU pokies scandal. Mr Thompson is tight with Mr McLauchlan of course, Mr McLauchlan being the Chairman of the Highlanders at the time the South Auckland pokies scandal was in full swing. McLauchlan – scandal – bees – honey.

Not right-sized, of course, is the matter of the Aurora replacement budget. We all know – now – that Aurora were going to spend $443M in deferred maintenance over 10 years (yes, stop dissembling Grady, it’s $443M, not $417M, but what they haven’t set out is where the money is coming from. Lines charges are fixed, and in very, very broad terms if we, the ratepayers, have to spend $443M to basically maintain what we have – then the very big question is – what is the depreciated, deteriorated asset worth …right now?

[An alarming example that comes to mind is the DCC purchase of the Dunedin Railway Station in the early 1990s. A wonderful asset now (pity about the decks) after a number of millions have gone into its restoration and upkeep over a 10-12 year period ….but what did the DCC pay ? ….the answer ? precisely one dollar.]

Now the Aurora 2016 Annual Report says in its headline “Trend Summary” (aka the good news feel-good piece early in the report at page 12) is that the ratepayers have equity of $183M in Aurora, and equity to assets is 42.1%, but unsurprisingly (this is Grady and the gyroscope we are dealing with here) the very bad news – the debt is $253M and is not going away – doesn’t quite make it into the good news piece.

So if we are charitable and assume that only say $250M of the $443M is actually for direct Dunedin infrastructure renewal and the balance being for actual expanded capacity then, then $250M of shareholder equity is needed for the upgrade. But wait Batman ! We only have $185M of equity. Holy exploding potheads Batman !! What do we do ? Batman: Elementary, my dear Doctor Parton —In the immortal words of Christine Fletcher, mayor of Auckland in 1986 when asked the same question by Fletcher Construction (of the cost to finish the Aotea Centre), “That’s what the ratepayers are for.”

Readers, you might well be thinking at this stage, CD has it wrong again – when I put in a new kitchen and bathroom in my villa in Belleknowes, it was worth more, so it didn’t matter that there was more debt ….because the asset was worth more. However, the value of power networks is determined by the Commerce Commission, who regulate what amounts each network can charge ….based on the value of the asset. Your correspondent surmises that the next scandal to unfold at Aurora is that resident Delta toxicologist, Matt Ballard of Capability and Risk, has overseen a massive overstating of the present value of the network. The bottom line is : with $250 – $400M of work needed FOR MAINTENANCE, ie NOT GENERATING EXTRA CAPACITY, it is worth nowhere near $436M right now. What does that mean? It means, readers, that the “jewel in the crown” of the DCHL, our cash cow HAS NO SHAREHOLDER EQUITY and has 100% debt to equity. Hilary Calvert is correct – if this were DC Ross, or any other private company, the receivers would have been called in long ago. However, accountants like the caustic Mr McLauchlan prefer companies with no shareholder equity because the returns on equity are out of this world…. until something happens.

Readers, what dissembling Mayor Cull will never tell you is that just like in Central Otago, as helpfully described by Nick Loughnan in the ODT a few weeks ago, you are about to experience in your future either some eye watering rates increases or, if the Commerce Commission allows, some similar exponential line charge increases. It’s one or the other. There is no other way.

Mayor Cull is aware of the consequences set out above : he said at the outset of Mr Healey’s crusade that he did not want public confidence shaken.

The questions or scenarios above are not pleasant – as the biblical line goes, these are hard questions, who can answer them ? They are the lines industry equivalent of farting in church – rude, inappropriate but better to get it out in the open before there is a big mess (or at least know the mess is coming). Yes, the air will be blue for a while – a long while. Messrs McLauchlan, Parton, Kempton, Frow, Wood, Thompson have done more than farted, they have created a stinking “code brown” mess. They will not be missed.

[ends]

*Note: New Zealand Companies Office records show McLauchlan and Parton ceased being directors of the Aurora/Delta Boards on 12 December 2016.
Aurora Energy | Delta Utility Services

Legal advice to the DCC on new 3-term limits for CCO directorships ‘may have’ forced this change. Debatable.

█ 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: markeweebly.com – farting dog by mark cable, tweaked by whatifdunedin

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

Brief 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

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.

—

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.

Deloitte report pending —Public Notice at ODT | Facebook entry

ODT 9.12.16 (page 20)

—

█ Facebook: Richard Healey

—

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.

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.

Audit and Review, Deloitte

U N N E R V I N G ● N E W S

“If Deloitte was caught with one such brazenly egregious case, just what else is there that goes unreported, and undiscovered when it comes to corporate “books”, not only in Brazil but also in the US.”

### zerohedge.com Dec 5, 2016 9:43 PM
Auditor Deloitte Fined A Record $8 Million For Massive Fraud
By Tyler Durden
Remember when auditors were, by their very definition, supposed to be the embodiment of credibility, trustworthiness and moral fibre? The Brazilian arm of Big Four auditing giant, Deloitte, forgot these simple prerequisites and as a result the US auditing watchdog fined the firm a record $8 million for what amounts to massive fraud: falsifying audit reports, altering documents and providing false testimony during an investigation that unearthed what it described as its “most serious” finding of misconduct.
The US Public Company Accounting Oversight Board, or PCAOB, also penalised or barred 12 former partners, including a national practice director, and auditors of the Brazil-based Deloitte Touche Tohmatsu Auditores Independentes.
The Deloitte Brazil case is the first time the PCAOB has “charged a member of the Big Four auditing firms with fraud and for failing to co-operate with an investigation” according to the FT [Financial Times]. Worse, unlike banks which resolve similar cases without admitting or denying guilt, in settling, Deloitte Brazil admitted it had violated quality control standards and failed to co-operate with the auditing board’s inspection and subsequent investigation.
“This is the most serious misconduct we’ve uncovered. It’s cover-up after cover-up after cover-up,” Claudius Modesti, director of enforcement at the PCAOB, said. “As an investor you’re expecting that the audit was done properly and sufficiently and that wasn’t the case here.”
Not only was that not the case, but the details read like straight out of a fictional account of third-world crime.
Read more

Deloitte Touche Tohmatsu Ltd, commonly referred to as Deloitte, is a UK-incorporated multinational professional services firm with operational headquarters in New York City in the United States.
Deloitte is one of the “Big Four” accounting firms and the largest professional services network in the world by revenue and number of professionals. Deloitte provides audit, tax, consulting, enterprise risk and financial advisory services with more than 244,400 professionals globally. In FY 2016, the company earned a record $36.8 billion USD in revenues. As of 2016, Deloitte is the 6th-largest privately owned organisation in the United States.

The Big Four:
● PricewaterhouseCoopers (PwC), largest accounting firm in terms of revenue.
● Deloitte Touche Tohmatsu (Deloitte)
● Ernst & Young (E&Y)
● Klynveld Peat Marwick Goerdeler (KPMG)

—

OTAGO RUGBY & RACING ASIDE

Remember the old chestnut…. The connection between TTCF (The Trusts Community Foundation Ltd; formerly, The Trusts Charitable Foundation Inc) —and Deloitte.

“TTCF engaged Deloitte when they desperately needed an ‘independent’ audit so as to put the Department of Internal Affairs (DIA) and Audit NZ off the scent. Unfortunately, even though Deloitte uncovered approximately $40k per month in mis-spent funds, TTCF ensured that was left out of the report because after all they were paying the Deloitte bill.”

—

Related Post and Comments:
2.6.15 Queen’s Birthday honours to rogues #TTCF #ORFU #PokieRorts
11.3.15 DIA —poor job as gambling regulator
2.2.15 Operation Chestnut: DIA, SFO fluffing round the edges #TTCF #ORFU
11.1.15 Southern complainants: IPCA won’t ensure upfront investigation…
14.12.14 DIA regulates what? Not white collar crime, not with govt looking on!
5.8.14 Gambling Commission shuts down racing’s Bluegrass pokie trust
3.2.14 DIA signed up Intralot amid concerns about bribery and corruption
31.12.13 Martin Legge: Operation Chestnut [DIA’s PR exercise]
30.12.13 DIA insights: Pokie rorts, money-go-rounds, names
11.10.13 New Zealand: Pokie trusts same everywhere #pokierorts
10.10.13 Whistleblowers’ message heard ??! #OtagoRacingClub #pokierorts
1.8.13 Politicians keeping DIA/SFO quiet on ORFU and TTCF #pokierorts
31.3.13 DIA and Office of the Auditor General stuff up bigtime #pokierorts
21.2.13 DIA, SFO investigation #pokierorts
11.11.12 Department of Internal Affairs #pokierorts #coverup #TTCF
25.7.12 Martin Legge backgrounds TTCF (pokie trust) and Portage and Waitakere Licensing Trusts #DIA

█ For more, enter the terms *pokies*, *pokie rorts*, *ttcf*, *orfu* or *dia* in the search box at right.

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: Deloitte via Wikimedia Commons

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!!

ZeroHarm [click to enlarge]

Source: FB post

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

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.

None 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.

Delta #EpicFail —Noble Subdivision : [rephrased] Conflict of Interest

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

—

Received from Christchurch Driver [CD]
Sun, 13 Mar 2016 at 6:00 p.m.

Dear Readers and What –if Mobsters

Your correspondent is given to understand there are several of you who enjoy his posts, which is certainly gratifying to him, if not to the DCC. However readers are taxing mistresses, they demand fresh and current material for their reading pleasure.

Discerning readers of taste and sophistication, of which you are without exception, are firmly of the view that there is nothing as old as yesterday’s news, and tonight’s post is indeed recycled and somewhat elderly. But wait, as Noble Investments Ltd said to the Judge Osbourne, I can explain why I have reneged on my obligations….

This week Mr Graham Crombie did more than re-release Delta CEO Grady Cameron’s press release. He advised What if? that he considered this post below “defamatory” to Mr McKenzie. And said that in effect he will soon have a letter from his lawyers about this. Although, What if? hasn’t actually seen the letter yet. We think it is in Mr Crombie’s other pocket, tangled up with some minties wrappers and the latest Harcourt’s update on the Noble Subdivision mortgagee sale process. Yes, that document has gone missing too.

This Correspondent was cut to the quick. Him ? Defamatory ? A Tom Kain Klone ? Forsooth, he faints at the sight of his own blood !

Friends, Romans, Dunedinites, I come not to bury Mr McKenzie but to praise him. (Eventually).

Here is the post, with all traces of defamation removed…. for Mr Crombie’s reading pleasure….

****

Certain of you, have commented how in recent Council meetings DCC GCFO Grant McKenzie has several times now said he has a “conflict of interest”, when the question of the DCHL financial performance is raised by Councillors. He does not look comfortable in those situations.

OK, so what is this conflict of interest ? Mr McKenzie is the financial eyes and ears of the DCC. He is employed to preserve and maintain the financial stability of the DCC. This includes managing the hundreds of millions of debt that the DCC and its DCHL companies have; and having full oversight of the DCHL companies, which are in theory meant to be significant revenue generators for the DCC. (But, as Mr McKenzie admitted to Cr Lee Vandervis recently, DCHL companies will generate ZERO income (ie dividends) to the DCC for the next three years at least). However, despite the lack of dividends, they are still very significant DCC assets and it is completely right that Mr McKenzie should know in detail what is going on at DCHL.

This correspondent does not see how a conflict of interest can arise.

DCHL companies, owned by DCC, are for the sole purpose of generating a financial return to ease the rates burden. The historical amount of contributions provided by DCHL is shouted from the rooftops at every available opportunity by DCHL boosters. To this correspondent, there are only two ways in which Mr McKenzie could have “a conflict of interest” as he describes it. One is if the actions of the DCHL companies exceeded the risk profile that Mr McKenzie felt was appropriate for a DCC owned entity. The other is if the DCHL Companies were not in fact providing full or accurate information about their activities or intended activities to DCC or the elected representatives, and placing DCC at risk that way.

Readers, and Mr McKenzie, need to remember that Mr Larsen said in his report that the DCC needed to have a very low threshold for commercial risk, and much better communication. Mr McKenzie is there to make sure that DCHL doesn’t exceed a very low risk threshold and to tell us what he has found there. Tick the boxes for those items.

But who is paying Mr McKenzie ? The answer is the DCC. Therefore Mr McKenzie does not have a conflict of interest. He has a clear obligation to disclose to Council and ratepayers anything that is of concern at DCHL. He is not paid by council to shuffle from one foot to the other and claim a conflict of interest when asked questions of DCHL financial performance.

We should spare a thought for Mr McKenzie. He is the senior DCC staff member that has to represent the DCC’s interests. Those interests, first and foremost are to ensure that those DCC owned DCHL companies operate with a very low threshold for commercial risk. On the other hand, against him are legions of DCHL directors, who, if nothing else, appear extremely good at sugar coating bad news, or cloaking it in such a way as to make discerning the facts extremely difficult. (Mr Crombie, please read the Auditor-General’s report before you go reaching into your pocket). Add that to the subtle and not so subtle peer pressure, and it is easy to see Mr McKenzie has a tough job safeguarding the interests of ratepayers in respect of DCHL.

Refer to the video record (Part 1 and Part 2) for the full council meeting of 22 February 2016. This correspondent believes there is a (very) high possibility Mr McKenzie has not been told the full facts about Delta at Noble, or it has been spun to him with a few key, inconvenient facts omitted. If this is in fact correct and he acknowledged this, and then advised the city what he does know and provided an accurate assessment of the actual risk to ratepayer funds against the allowable “very low risk” threshold, he would have the support of DCC upper management and probably a job for life – if he wanted it.

Mr McKenzie would not have to look too far to find inspiration or a precedent in Dunedin. Just a couple of blocks away at the Hospital in fact. In 2008 the recently appointed Health Board Chief Financial Officer, Robert Mackway-Jones, discovered some unusual transactions that was of course the $16.9M Michael Swann fraud. Mr Mackway-Jones didn’t let up, pushed the issue and found that neither the Board Chair, Mr Richard Thomson, nor the Board CEO, knew of the transactions. Mr Mackway-Jones was the hero of the Swann case; and Mr McKenzie only has to present the facts to Dunedin ratepayers to achieve the same status.

This correspondent understands Mr McKenzie is already well regarded within DCC upper ranks. But if he did this he would be so popular with Dunedin ratepayers he could run for Mayor next time around….

Dunedin ratepayers just need Mr McKenzie to represent their interest, and forsake the tea and cakes, and mutual backslapping with DCHL Directors.

This will mean clashes with the DCHL directors at times……..

Tis food for thought, mobsters (as the Clash would say…. Revolution Rock, London Calling, 1979).

—

Related Posts and Comments:
● 11.3.16 Delta peripheral #EpicFail : Stonewood Homes & ancient Delta history
● 6.3.16 Delta #EpicFail —Noble Subdivision : Tea & Taxing Questions
● 6.3.16 Delta #EpicFail —Nobel Subdivision : A Neighbour responds
● 5.3.16 Delta #EpicFail —Noble Subdivision —Epic Fraud
● 4.3.16 Delta —Noble Subdivision #EpicStorm Heading OUR WAY
● 4.3.16 Delta #EpicFail Noble Subdivision : Councillors know NOTHING
● 2.3.16 Delta #EpicFail Noble Subdivision : A Dog, or a RAVING YAPPER?….
● 1.3.16 Delta #EpicFail… —The Little Finance Company that did (Delta).
29.2.16 Healthy views Monday midnight to 6:00 p.m.
● 29.2.16 Delta #EpicFail Noble Subdivision : NBR interested in bidders
● 28.2.16 Delta #EpicFail Noble… If I were a rich man / Delta Director
● 27.2.16 Delta #EpicFail Noble Subdivision Consent : Strictly Optional
● 27.2.16 Delta #NUCLEAR EpicFail —Noble Subdivision : Incompetent…
● 25.2.16 Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101
● 24.2.16 Delta #EpicFail —Noble Subdivision: Cameron, Crombie & McKenzie
● 23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● Gold Band Finance Prospectus No. 31 Dated 22 April 2015
View this 126pp document via the NZ Companies website at: https://www.business.govt.nz/companies/app/ui/pages/companies/321896/documents — go to Prospectus uploaded 23 Apr 2015 14:33

● 14.5.14 (via DCC website) Larsen Report February 2012
A recent governance review of the Dunedin City Council companies was conducted by Warren Larsen.

● 20.3.14 Delta: Report from Office of the Auditor-General
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point

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

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Posted by Elizabeth Kerr

*Image: the-rudy.com – The Clash Revolution Rock w2 tee

Delta peripheral #EpicFail : Stonewood Homes and ancient Delta history

Received from Chrsitchurch Driver [CD]
Fri, 11 Mar 2016 at 1:35 a.m.

Your correspondent is going to meander down some tangential subdivision side streets tonight (not the main collector road, the excavator won’t fit on those….) and consider the curious case of Stonewood Homes.

It was probably inevitable given the very shallow gene pool that South Island companies fish in for independent directors, that a name would pop up that had also had some previous form with Delta.

However, before we excavate that particular trench, let’s consider why the shoring gave way on Stonewood, why the temporary support from the bank buckled and the subsequent structural failure – (the engineering metaphors are flying thick and fast tonight….)

Your correspondent is very bemused at the vast sums that a large number of building and engineering companies seem to be able to generate – in the negative. An internet search shows a long and regular list of failures. (Delta Civil Division would doubtless have joined them had it not had ratepayer funds to prop it up). Hartner Construction in 2001, about $20M, Wellington Construction in 2012 (unknown), Mainzeal Construction in 2013 (between $60-130M, dependent on if related party transactions can be unwound) and, closer to home, Southland’s own Amalgamated Builders (also with a branch in Dunedin) who managed to lose $20M in just two years when they bought a reputable Auckland company, Goodall Construction, renamed it Goodall ABL and then proceeded to destroy it in 2001.

There is some illuminating information online that shows the insane amount of risk that companies in the construction sector assume for what appears to be very little reward.

In the ABL Goodall case, property commentator Bob Dey described Goodall ABL as “a victim of trying to win market share on no margin, with a maximum guaranteed price contract in place”. Quite why anyone would seek to perform somewhere between $60-80M of work in two years for no return sounds like Delta-level stupidity, and certainly, the result was the same : ABL Goodall went so comprehensively broke, mainly with subcontractors’ money, that it was a major catalyst for the Government of the day to introduce the Construction Contracts Act in 2002 which provided some protection for Subcontractors. Proof that Southlanders do have some uses other than milking cows (readers, I jest).

Delta may yet provide compelling evidence for the Government to remove the “power of general competence” that Territorial Authorities received from the Government in 2002 that started many down the path towards illusory piles of gold that vanished in a mirage, along with a lot of public funds.

Memo To Mr Crombie : The CCC have admitted defeat and are trying to sell their Delta equivalent, City Care : why not join up and make it a two-for-one deal ?

But back to Stonewood. A trio of heavy hitters arrived in February 2014 to help fix the Stonewood Homes brand. In the press release it was noted that in 2013, Stonewood had consented 407 homes, had a turnover of $133M, and was aiming for 500 consents in 2014.

Your correspondent now will do something unheard of – making excuses for Delta…. as follows :

Building houses is not the same as civil contracting or commercial building. Those sectors all indulge in unique one off projects, with different specifications, different designers and engineers who have different standards. Lots of risk with ground conditions, legal disputes are legion.

But “group” housing is just different variations on the same cookie cutter. Standard designs, tweaked a little here and there, flat sites, lots of repetition, production line type processes. Houses started and finished around 14-16 weeks. Deposits before you start, a sales force to keep the numbers flowing. Any amount of back costing and analysis off repetitive designs to check what the numbers should be. It’s all been done before, lots of other companies are doing it so “benchmarking” your company against your competitors is easy.

Stonewood weren’t building difficult or expensive homes : Their average house cost around $325,000 in 2013. (Turnover of $133M for 407 homes).

Receivers KordaMentha confirmed that Stonewood had built up “significant” debt since the earthquake. Let us assume that Stonewood’s losses began in 2012 continuing in 2013, 2014, 2015. The loss is currently $30M. Your correspondent understands that the ASB is owed $5M and that typically, of the 110 houses underway at any one time, only 30 were profitable, and this was known within the company.

That Stonewood were unable to make any money at all, but instead went deeper into debt over a four-year period of huge demand is certainly testament to some Delta-level management deficiencies. One, or one and a half years of losses is grave but understandable, two to three is indefensible, and four years just plain carelessness !

Assuming an average turnover of about $115-120M per year (ie a peak turnover of $133M in 2013), this means that each year they lost $7.5M on average. (It was probably less in 2012, a lot more in 2015).

Put another way, on every house they built, over a four-year period, they lost around $21,000. Yes, they can definitely have a seat at the Delta table. And one Stonewood Director has sat at that table before, and that is Mr Jim Boult.

Now Mr Boult, while no Tom Kain in terms of litigation, certainly knows his way to his lawyer’s office, so this correspondent shall confine his comments to the facts :

Mr Boult, you may recall, had a 50/50 Joint Venture (JV) with Delta on the failed Luggate Development, where Delta lost $5.9M. Delta’s terms there were similar to Noble : A $5M advance to cover the subdivision work, payable only when the sections were sold.

Mr Boult utilised a valuer on behalf of the JV who had previously valued the land for his company. The valuer, in calculating the value of the land assumed a figure of $55,000 per section for Development costs. The actual cost was $105,000 per section. The valuer assessed the value of the land Delta bought a 50% share in, at $10.7M. There were potentially 172 sections that could be developed on the land. Six of the 172 sections were sold. The remaining land, with (a relatively small amount of) Delta’s improvements, was eventually sold…. for $1.5M. This information is all contained in the Auditor-General’s Report (14 March 2014).

A small but noteworthy detail included in the Auditor-General’s report was that the terms of the Joint Venture meant that Delta staff were not paid for any time they spent on the JV or the project, unless it was directly related to the Civil Work. A Project Management firm, Signal, was employed to manage the project. However Mr Boult sought and received $5,000 per month “for his time” spent on the Luggate JV.

Back to Stonewood, it turns out that Mr Boult was unable to make any difference to turn around Stonewood’s fortunes in 2015. Mr Boult’s enthusiasm for Stonewood : “I am truly delighted to be the chair and help guide the company in its future direction” lasted just 12 months. Nonetheless he obviously saw something he liked at Stonewood as he confirmed last week that he had quit as a Director of Stonewood on 1 February 2016, because, in concert with some employees of Stonewood and some franchisees, he was trying to buy Stonewood. This seems unusual behaviour for the chair of a large company, but then your correspondent is not a member of the Institute of Directors, and is uncertain of the usual directorial protocols about directors or chairmen of the board trying to buy a company they just resigned from last week. Perhaps a reader experienced in such matters could provide enlightenment.

Yes readers, I can sense your impatience : Join the dots you say ! This correspondent’s opinion, and it is only an opinion from the outside looking in, is that Mr Boult, was looking to buy not only Stonewood, but is most likely involved with a mortgagee sale bid to purchase the Noble Subdivision at Yaldhurst. The intention being that Stonewood would be the builder of the subdivision, both effectively controlled by Mr Boult.

Mr Boult knows the subdivision business, and he now has an inside view of how housing companies are run (or more accurately, how not to run one).

Despite Mr Boult’s defeat at the hands of the Brothers Chow in respect of Stonewood, a bid for Noble may well be attractive to him.

Now given Mr Boult’s history with Delta, it would seem highly likely that if this were the case, there would have been some contact between Mr Boult and his people and Delta.

Can Delta or its Directors or Mr Crombie confirm ? And of course as is the refrain, that no more public funds will be put at risk ?

—

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

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

More: Historic data for directors

Related Posts and Comments:
● 10.3.16 Noble Subdivision next on the shopping list !!! You couldn’t…
● 6.3.16 Delta #EpicFail —Noble Subdivision : Tea & Taxing Questions
● 6.3.16 Delta #EpicFail —Nobel Subdivision : A Neighbour responds
● 5.3.16 Delta #EpicFail —Noble Subdivision —Epic Fraud
● 4.3.16 Delta —Noble Subdivision #EpicStorm Heading OUR WAY
● 4.3.16 Delta #EpicFail Noble Subdivision : Councillors know NOTHING
● 2.3.16 Delta #EpicFail Noble Subdivision : A Dog, or a RAVING YAPPER?….
● 1.3.16 Delta #EpicFail… —The Little Finance Company that did (Delta).
● 29.2.16 Delta #EpicFail Noble Subdivision : NBR interested in bidders
● 28.2.16 Delta #EpicFail Noble… If I were a rich man / Delta Director
● 27.2.16 Delta #EpicFail Noble Subdivision Consent : Strictly Optional
● 27.2.16 Delta #NUCLEAR EpicFail —Noble Subdivision : Incompetent…
● 25.2.16 Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101
● 24.2.16 Delta #EpicFail —Noble Subdivision : Cameron, Crombie & McKenzie
● 23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● Gold Band Finance Prospectus No. 31 Dated 22 April 2015
View this 126pp document via the NZ Companies website at: https://www.business.govt.nz/companies/app/ui/pages/companies/321896/documents — go to Prospectus uploaded 23 Apr 2015 14:33

● 14.5.14 (via DCC website) Larsen Report February 2012
A recent governance review of the Dunedin City Council companies was conducted by Warren Larsen.

● 20.3.14 Delta: Report from Office of the Auditor-General
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point

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

—

Posted by Elizabeth Kerr

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

*Images: (top) stonewood.co.nz – Chow Bros | stuff.co.nz – Jim Boult by Stacy Squires

Delta #EpicFail —Noble Subdivision : Tea & Taxing Questions

Received from Christchurch Driver [CD]
Sun, 6 Mar 2016 at 10:23 p.m.

Mr Crombie has spoken. A press release on Thursday : Something old, something new, something borrowed, with no clue.

Your correspondent has a theory in relation to Mr Crombie’s press release. Your correspondent surmises that a copy of Delta CEO Grady Cameron’s press release appears to have stuck to Mr Crombie’s saucer (stress – jiggling – spillage !!) when he was having tea and cakes in Mr Cameron’s office last week, and Mr Crombie absent mindedly put it in his pocket. Mr Crombie being a busy man then noticed it a few days later amidst some empty Cadbury Favourites wrappers and Kit-Kat bars. Thinking that he was meant to have done something, and with Grady’s cell phone off, he panics, and emails off the release, which of course is a re-run of Mr Cameron’s effort.

Mr Crombie did say there had been “some misinformation” about the mortgagee sale process. There certainly has, and it is all from Delta and its directors.

Your correspondent and Delta are of one mind here : There is no need for any confusion, Dunedinites will have a lot less suspicion and worry if we had accurate information that Delta and its Directors were not the white collar robbers of the DCC public purse that your correspondent has made them out to be.

To this end, some public minded citizens might want to put in a LGOIMA request, or perhaps write to the ODT with the following questions for Delta, to assist with the excellent What if? efforts on Noble to date.

Let us relax with a cup of Bell’s best and have our fears assuaged. Or perhaps, let us watch the twists and turns of outrageous logic that Mr Cameron will use to explain away these very simple questions :

How much of the $3.3M Delta paid to “strengthen its position” has been paid to Gold Band and Avanti Finance. This is an easy one for starters – readers of course know the answer ($2.7M) because Gold Band have told us, but if Delta get this wrong, we then know it has a telling-the-truth problem as well as previously canvassed numbers, counting and comprehension problems.

What was the remaining funds of the $3.3M spent on ?

Or in case this isn’t clear enough :

How much of the $3.3M has been paid for any advice, fees, or any other sort of payment in relation to the Noble Yaldhurst Subdivision, that was not for the actual direct purchase of first mortgage securities ?

In regard to the question above, who was this money paid to ?

How much Head Office staff time has been spent on the Noble Subdivision since December 2009 and has it been charged to the project ?

Did Delta, or any party associated with Delta, instruct, or convey to Gold Band Finance in any way, that Delta would not allow Gold Band to sell its first mortgage security to other parties (ie, other than Delta) with an interest in the land ?

Can Delta confirm that it will not offer vendor finance, and will not enter into a profit / revenue sharing agreement to the eventual purchaser of the land from the mortgagee sale process ?

Can Delta confirm that in addition to the above, it will not offer any kind of assistance to the eventual purchaser of the land ?

How much has Delta or DCHL paid Mr M Frost for any services related to the Noble Subdivision since 2012 ?

Can Delta confirm that no past or present Delta Directors, and also Mr J Boult, and Mr M Frost, are not involved, or offered any kind of advice or assistance to any of the mortgagee sale bidders ?

Is it true that due to recent developments, and subsequent to the date that tenders closed for the mortgagee sale, the firm conducting the mortgagee sale process, and/or other parties, has been urging other parties, who did not make a bid, to make a bid, even though tenders have closed ?

Given that we are dealing with Delta, perhaps readers should just consider three at most per request so as not to overtax Delta capacities.

These are all critical questions. Memo to Grady and Graham : Better to answer them now, the next time these questions are asked you will be best advised to have a lawyer – your own personal lawyer that you pay for, not a Delta one – present. (Suggestion : NOT the ones that wrote the security sharing deed….). Memo to Graham : $900 a day will not go far on lawyers’ costs.

And Graham : Note to Self : Conduct cost / benefit and personal risk register of Delta involvement. (Memo to Grady : At a salary of $2,090 per working day, hire whatever lawyer you want).

Alert readers will have noticed some of these questions suggest there are yet more horror stories and shady dealings your correspondent wishes to bring to the surface. Indeed there are, but let us have Delta’s position first, to avoid speculation. Of course we will have no option to speculate if nothing is forthcoming, and speculate we will.

For your correspondent, Delta at the Noble Subdivision is the gift that keeps on giving.

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

—

Posted by Elizabeth Kerr

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

Delta #EpicFail —Nobel Subdivision : A Neighbour responds

Comment received in reply to CD’s latest post (5.3.16):

Chutchings hut
March 5, 2016 at 9:06 am

The neighbours have a history of objecting, they are not the innocents you portray. The allegations about inadequate infrastructure are nonsense.

—

A Neighbour responds
Sun, 6 Mar 2016 at 3:26 p.m.

“Chutchings hut”, your post here resembles that of C(hris) Hutching’s from NBR. Maybe you’re both?? Either way your posting here and his on NBR, respectfully, is unsubstantiated and misinformed as many have been by NIL during this sad saga. Allow me to enlighten you.

The CCC stormwater experts, an external peer review, and even NIL’s own stormwater designer Cardno have confirmed the stormwater infrastructure IS “inadequate”. Existing roads need to be dug and pipes upsized. I can send you whatever evidence you want?

Further, the road infrastructure is not only “inadequate”, it was found by the Independent Safety Audit [Dr Turner and other traffic experts] to be have “numerous serious safety issues that cause frequent serious injuries and deaths”.

This is why the Elected Council voted to quash the retrospective decision CCC staff procured non-notified to consent the unsafe roads they had already permitted to be constructed without consent.

You are right though that resident stakeholders in the subdivision (neighbours as you refer to them) have a history of objecting, that’s because they have had much to object about. Your post here that they are “not innocents”, and Chris Hutching’s information in NBR that the objections were “belated objections” … “after consents were obtained and the streetworks constructed” is not correct. Public information proves otherwise:-

• Affected residents that will have to use these roads objected from mid 2010 when the roads were being constructed without consent to grossly non-complying standards.

• NIL and CCC staff had agreed to these gross non-compliances behind-closed-doors.

• CCC staff oppressed the affected residents and denied them (and the public) their legal rights under the RMA to oppose the gross non-compliances and dangers.

• The illegally built roads were retrospectively consented 12 months after the objections, in July 2011. (This was 19 months after the variation application was made in December 2009 to make the main spine road 7.5m narrower than required. Doubling of traffic on the narrow roads due to non-notified increases in residential density and the commercial area came later).

• The Elected Council voted for the Independent Safety Audit (against CCC staff’s strong advice). It found the non-complying roads had “numerous serious safety issues that cause frequent serious injuries and deaths”. This caused the Elected Council to quash the wrong, unsafe and “unreasonable” (“RMA term”) decision that CCC staff’s oppression of affected parties and CCC staff’s false tailoring of expert reports ensured.

• Yours and Chris Hutching’s NBR misinformation on this is respectfully forgiven; many have been misinformed of facts in this sorry saga.

Delta —Noble Subdivision #EpicStorm Heading OUR WAY

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

IMPENDING POST ALERT
CD has THE story for you……….. soon

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

—

Posted by Elizabeth Kerr

*Image: thinkdelta.co.nz – delta-waste-digger tweaked by whatifdunedin

Delta #EpicFail Noble Subdivision : Councillors know NOTHING

ODT 3.3.16 (page 14)

—

THIS IS SURPRISING, DO WE BELIEVE HIM

“Delta has provided regular updates to its shareholder, Dunedin City Holdings Ltd, which has in turn informed Dunedin city councillors in briefings throughout the project.” –Grady Cameron, Delta Chief Executive

IPAD BLANK, NO MESSAGES, BLUE TAPE

Delta-communications-ipad

Urban Dictionary
Blue Tape: A term used to express the ratio of service offered in an Emergency …. versus the quantity of seemingly available staff. Often considered to be greater in truth when expressed as the inverse of the service to staff ratio.

DUNEDIN CITY COUNCILLORS FEAR MULTIMILLION-DOLLAR LOSSES FROM DELTA BUT THEN WHAT IF? HEARD IT WAS DELTA DRIVING THE MORTGAGEE SALE AT YALDHURST

[timemanagementninja.com]
Blue tape is the start of something new.
A construction project. Building something new. Remodeling something existing. Producing something better than was there previously.
Blue tape represents constructive, productive activity.
So, which does your company deal in? Red or blue tape?

GRADY ????!!!!!!!

—

Related Posts and Comments:
● 2.3.16 Delta #EpicFail Noble Subdivision : A Dog, or a RAVING YAPPER?….
● 1.3.16 Delta #EpicFail… —The Little Finance Company that did (Delta).
● 29.2.16 Delta #EpicFail Noble Subdivision : NBR interested in bidders
● 28.2.16 Delta #EpicFail Noble… If I were a rich man / Delta Director
● 27.2.16 Delta #EpicFail Noble Subdivision Consent : Strictly Optional
● 27.2.16 Delta #NUCLEAR EpicFail —Noble Subdivision : Incompetent…
● 25.2.16 Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101
● 24.2.16 Delta #EpicFail —Noble Subdivision: Cameron, Crombie & McKenzie
● 23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
● 29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
● 21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● 14.5.14 (via DCC website) Larsen Report February 2012
A recent governance review of the Dunedin City Council companies was conducted by Warren Larsen.

● 20.3.14 Delta: Report from Office of the Auditor-General
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point

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

—

Posted by Elizabeth Kerr

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

—

Delta #EpicFail Noble Subdivision : A Dog, or a RAVING YAPPER?….

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

—

Received from Christchurch Driver [CD]
Wed, 2 Mar 2016 at 12:50 p.m.

Your correspondent today was intending to provide his further investigations and suspicions as to what was in fact really happening with the “mortgagee sale” process at Noble, and what they are up to. Pausing here : The term “mortgagee sale” is used in the loosest possible way. Your correspondent has been at work on this, and as the trail to the mortgagee sale has unfolded in recent posts, your correspondent now thinks he has taken What if? readers down a couple of dead ends in an early post or two concerning where Delta may have ranked and what Delta / DCHL are plotting…. He made the mistake of thinking a mortgagee sale was in fact a true arms length mortgagee sale, where security holders went to the market to sell a distressed asset, at whatever price the market saw value at. That is the consequence of seeing through the glass darkly, with a group of men determined to keep secrets, but your correspondent has enlisted some help, and reckons he now has the measure of Delta’s machinations in regard to their ultimate plan.

Readers may be surprised to hear that your correspondent has no personal axe to grind with any of the public figures he has lampooned, merely that on the facts some of them are unfit to occupy the positions they do.

Over a cup of tea, it has been decided to give DCC and Delta a chance to respond to the recent posts by releasing clear information about what has happened and what plan Delta / DCC has to exit the Noble Subdivision. While any Delta / DCC disclosure will be a lot less entertaining than this correspondent (even if I say so myself….) we must sacrifice humour for accuracy at this critical juncture.

It is a critical juncture because this correspondent believes if pressure is not brought to bear on Delta / DCC now, a fait accompli will be soon presented that is going to involve more public funds at risk.

Mr Crombie will assume a sombre tone, and announce that there was no option. He will become TINA Crombie. – There Is No Alternative.

As Justice Brandeis said ‘sunlight is the best disinfectant’ and all of Dunedin deserves precision as to what is going on. Of course, as What if? readers will know, if the Delta / DCC does not respond to the kind and gentle approach (we must give them a chance, readers) there are other avenues presently being explored….

Mayor Cull’s lack of transparency is extremely concerning, and is an indicator to what is happening. If indeed there was a proper mortgagee sale process occurring with negotiations with multiple bidders unrelated to Delta / DCC, there is absolutely no reason why he could not confirm that. This correspondent thinks he cannot because it isn’t true. Blatant falsehoods have a habit of being discovered.

Your correspondent is not a proud or vain man – (well, his wife may not agree) – he and most of Dunedin would be very, very happy if he was proven to be quite wrong, and Delta’s plan did not involve any further public funds. This of course doesn’t make the previous Delta ineptitudes go away. To labour the point : The directors must be held to account.

Today, instead of the headline act, we will tease out some of the implications of the Delta decision to continue work on the Noble Subdivision in December 2009, when the variation to the consented subdivision was revealed to them and they continued on.

This was the critical decision that led to Delta backing up a truckload of dollars off Yaldhurst Rd and tipping it into the freshly excavated ground at the Noble Subdivision. (Your correspondent likes earthmoving metaphors as much as the next man).

Quite apart from the ethical and legal considerations arising from committing a major offence under the Building Code, this correspondent believes this was also a very bad financial and strategic decision.

Delta #EpicFail Noble Subdivision : Gold Band Finance —The Little Finance Company that did (Delta).

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

—

Received from Christchurch Driver [CD]
Tue, 1 Mar 2016 at 4:17 p.m.

Your correspondent thought it useful to perform some financial excavation and unearth those precious first mortgage numbers that Graham Crombie and Mayor Dave Cull refuse to reveal in respect of the Noble Subdivision. They are the key to what Delta will eventually receive for its official $24M + debt on Noble. Your correspondent worked on the premise that if Delta is trying to hide something, it shouldn’t be too difficult to find at all. Your correspondent was not disappointed.

As they say in Delta out on the site, it was a good day, the ground was soft and the going was good. It didn’t take too long at all to get to the RL of the matter. (RL = Reduced Level…. excavator talk).

But inevitably, as is the fashion of these #EpicFail posts, there is evidence of continuing Delta stupidity, and yet another clumsy attempt to hide the facts from the ratepayers of Dunedin.

Your correspondent has long been curious about the first mortgagee at Noble Subdivision. Who they were, how much they were owed, what was their plan to exit out of this mess. Various entities had been mentioned in the media, but the company is Gold Band Finance. This is a tiny finance company : it has just $15.6M in TTA (Total Tangible Assets), and in August 2013 this one loan – in default – represented 21.30% of their total assets. Only 29% of the company’s lending is in property, and Noble was 70% of this. If Noble turned sour, this company was gone.

As it was, Gold Band breached their trust deed every year from 2009 until 2014 as a result of Noble, and twice had to pull its prospectus and not accept funds because the Trustee was so concerned about its position that it wouldn’t give Gold Band a waiver because the trust deed breaches were so serious.
(Memo To Delta Directors – Find that Trustee and appoint him as an auditor).

Gold Band then in August 2013 decided it needed to get most of this paralysed elephant off its back, so it could continue breathing and operating. Thus it sold part of its first mortgage debt…. to Delta.

Now the usual course of events is that when banks or finance companies are under pressure and want to sell distressed loans, they do so at a discount. That is, just as an example…. The face value is, say, a few million, the borrower is a deadbeat and hasn’t paid anything for years, the loan is in default and the neighbours are suing him for unconsented work (sound familiar ?). The seller would grab 50-60 cents in the face value dollar with both hands and “move on”, to borrow a term from the Cull lexicon.

Typically on land / development projects, a first mortgage will go no more than 40-50% of Loan to Value ratio (LVR) : But Gold Band had assessed the LVR at 71%, so even the first mortgage was far into the red zone. We will return to this in a later post.

From this, what a person of greater than room temperature IQ would say : “Dear Gold Band, I like the cut of your jib, the quality of your borrower and prospects of this mortgage. This (broken) mortgage is a bargain at full value ! Where do I sign ?!

This correspondent can hear the collective ratepayers’ prayer, “Do not say it… no, please do not say Delta paid full value” ….Readers, Delta did not pay full value. It paid more.