Tag Archives: Liquidation

STADIUM LOSSES +$20M Ratepayer Subsidy each year : Not a Community Asset while Our Money flows OUT

So DDT, woops ODT, persist with their Stadium Support Policy after months of Nothing of Substance at the LOSS MAKING Stadium.

One feeble rugby test only.
Infrequent visits by grey-haired performers, jaded once-stars.

All this for +$20million each year on your Rates. The sinkhole of all Dunedin GOB stupidities, with a direct line to Mssrs MF and EE, dear friends of Queenstown.

The erstwhile owners of the local newspaper (and was it 23 delectable Rolls Royces and Bentleys later, as if Sunday night marshmellows by the roaring log fire) have the personal wealth to overlook the sheer theft by stealth and duff embellishment that is Dunedin’s LOSS MAKING stadium.

Many of us find our entertainment thrills, according to income or not…. via the tea leaves, payless YouTube, internet TV, Sky, or the treat of flying to venues elsewhere in New Zealand and overseas. Without having to insinuate ourselves into the Dog Stadium of #DUD.

Unless, you’ve a moronic Thugby itch, a weakness, a throwback in your understanding of national identity as brawl and brain injury…. and can live with just one test in a year, or more years…. to justify filching from the pockets of vulnerable citizens bullied into paying for Stadium indulgences of the rustler-wealthy and the toothless eroding upper echelons of the middle class.

Then a little Home Show for the Non-savers amongst us. Glory!

ODT 2.7.16 (page 1) tweaked by whatifdunedinODT 2.7.16 (page 1) | phoneshot by whatifdunedin

Dunedin’s 53,000 ratepayers (the hordes? far from it!) and the power users of Otago (via Aurora Energy, on notice to industry regulator, the Commerce Commission, because the lines company can’t fund sufficient renewals and upgrades to its working assets – not helped by annual subvention payments) are being Robbed Blind year in year out – to subsidise the council-owned Stadium debt servicing and operating costs.

This is a complete INJUSTICE.
All the games of tilted media Sway is the crippling joke landed upon those who dare to live South. More fool us for our obsequious, largely unquestioning gutless surrender.

In the midst of irresponsible property speculation, low-paying tourism-exploitation, and dairy industry shortfalls, no wonder it’s harder for people to meet rates, rents and basic weekly living expenses —or indeed to feed, clothe and home our very young and our school children, or to sympathetically and safely care for our elderly, and our homeless. Hell, just add the LOSS MAKING stadium as sprinkles on top.

New Zealand is now a Social-economic Monster and our Dunedin City Council is the frizzling Limb of that Heathen.

What faith a turnaround in our individual and collective fortunes at Dunedin as the +$20million pa Stadium RORT continues…. ?

The financial betrayal of the Chin and Climate-Change-Cull councils is WRIT LARGE as the hanging noose. The ANNUAL Stadium Subsidy – in raw terms – equals +$20million not available each year for Dunedin business diversity and development sufficient to create jobs as the much needed ratchet to gradually better standards of living for our most vulnerable residents.

So ODT, here’s the middle finger to your soul-destroying misfit editorial, Stadium’s true legacy (1.7.16), its deceitful posturing : an incendiary Insult to honest Dunedin people.

ODT, you socialise the parochial blindness, unquenchable greed and ultimate +$20million (annual) sins of the good old boys and flunky boosters. FO.

****

Reality checks from MikeStk at ODT Online:

The stadium’s true legacy
Submitted by MikeStk on Fri, 01/07/2016 – 10:52pm.

The stadium’s legacy continues to be a litany of broken promises and financial mismanagement. They’ve largely been papered over by raising taxes to pay for all these missteps, this can’t be put behind us because we continue to be forced to pay and pay for these mistakes and lies.

Let’s list a few:

● Mr Farry started off, back during that first council election, promising us a stadium that would be completely privately financed and the ratepayers would simply be a backstop in case of disaster. In the end we’ll have paid more than $400m, $8000 per ratepayer.
● Then we were promised the stadium “would not cost a dollar over $188m”. Turns out they quietly spent more than $250m, forgetting things like toilets, kitchens, turnstiles and scoreboards, and neglected to include the cost of debt servicing. When we’re done it will have cost more than half a billion dollars, not including the ongoing losses from running the thing.
● Rugby promised to raise $50m in capital to pay for the stadium. They failed, then they had the DCC borrow the money and ‘sold’ the best seats cheaply to their own members with the intent that that would pay down those loans (at the same time taking income from DVML). This ended up on the books as ‘rent’ that DVML was paying DVL, crying poor DVML abandoned this plan and the council hit up the ratepayers to pay for rugby’s private fundraising – we’re still waiting for rugby’s promised private fundraising.
● We’ve twice bailed the ORFU out of impending bankruptcy, largly caused by their decision to push for the building of a stadium that grossly devalued their one asset, namely Carisbrook, that secured their bank loans. In a moment of insanity the council bought Carisbrook for twice what it was worth. Having done this once rugby continued to party up big, holding black tie events for which they could not pay the bills. For some strange reason we bailed them out again. Last year the ORFU made $1m – it’s time they started to pay back some of their debts
● Rugby’s CST promised us that the stadium would make a small profit, $175k/year. Wouldn’t that be great? Instead DVML charges too little for using the stadium, losing millions every year that are paid for by the ratepayers as subsidies to create a pretend profit.

It’s been pretty much a disaster, and those responsible have yet to be held accountable. [Abridged]

****

A clarification at What if? Dunedin:

Mike
Sat, 2 July 2016 at 1:00 pm
For the record abridged from my response to this travesty was the final lines “… the various CST actors have mostly left town, the rugby crowd still don’t pay their way and wilfully neglect their promises to help pay for the stadium.”

The ODT also removed my contention that Farry’s original promise that the stadium would be privately financed “turned out to be far from the truth”. They also removed the adjective “their own stupidity” describing ORFU’s decision to push for a stadium resulting in the value of their one asset crashing to 0.

[ends]

****

ODT: Firm has 3 weeks to pay Carisbrook $3.1m debt (2.7.16)
The buyers of Carisbrook have three weeks to pay the Dunedin City Council for the former sports ground after an earlier plan to subdivide and develop the site to meet the $3.1million debt did not eventuate.

This week ODT said the mild winter had produced an increase in rodents. ODT need look no further than the infestation at its own sainted house.

Related Post and Comments:
1.12.14 Stadium Editorial Support strategy —ODT [see recent comments]

█ For more, enter the terms *stadium*, *orfu*, *rugby*, *carisbrook*, *pokies*, *dia*, *martin legge* or *bev butler* in the search box at right.

Posted by Elizabeth Kerr

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

11 Comments

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Law Courts Hotel #sad

An institution. Great precinct and location for accommodation, what happened.
Enhance building performance, perfect for retrofitting and adaptive reuse.

Law Courts Hotel, Dunedin [wikimedia.org] 3

### dunedintv.co.nz February 19, 2015 – 5:42pm
Law Courts Hotel in liquidation
The Law Courts Hotel in central Dunedin has been placed in liquidation. The hotel’s situated in lower Stuart Street, beside the Dunedin Courthouse. It’s been placed in the hands of liquidators by the High Court. Creditors owed money by the company have until the end of March to file claims. The sole director of the Law Courts Hotel is Mornington resident Leslie Scott. A financial report on the state of the business has yet to be made public. It was formally placed in liquidation last week.
Ch39 Link [no video available]

█ Wikipedia: Law Courts Hotel [edited]
‘One of the city’s most historic public houses and hostelries, the Law Courts Hotel, is located close to the Dunedin Law Courts (the courthouse) in Lower Stuart Street, in a large corner building with an Art Deco style facade (not the original frontage), directly opposite the Allied Press Building (the offices of the city’s main newspaper, the Otago Daily Times). Listed by Heritage New Zealand as a Category II historic place (List No: 2189). The prime location of this hotel near these two premises has greatly contributed to its history, as has its longevity (having originally been founded as the Auld Scotland Hotel in 1863).’ Link

Posted by Elizabeth Kerr

*Image: wikimedia.org – ‘deco-tweaked’ by whatifdunedin

4 Comments

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ORFU: Black-tie dinner, theft or fraud?

Dave Goosselink Tweets 17.3.14[screenshot]

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

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

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

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

Wednesday 19th March 2014

Dear Steve

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

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

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

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

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

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

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

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

Yours sincerely
Bev Butler

Previous letter to Steve Tew deleted, read it here

[ends]

*Link to source

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

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

Posted by Elizabeth Kerr

6 Comments

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ORFU flush to pay creditors

When asked whether the union would consider repaying some creditors who lost money when the deal was agreed to save the union from liquidation, Union chairman Doug Harvie said that would not happen.

### ODT Online Fri, 14 Mar 2014
Profit pleases ORFU
By Steve Hepburn
The Otago Rugby Football Union has recorded a $406,800 profit, just over two years after it faced going out of business because of debts of more than $2 million.
The union now has reserves of more than $500,000, and is predicting a small profit for the coming year. […] In March 2012, the union was a few days away from going out of business, with debts of $2.2 million and creditors failing to come to agreement. But a rescue package was nailed down and the union traded its way out of difficulty, albeit with some concessions from creditors.
Read more

****

Correspondence received.

From: Bev Butler
To: Doug Harvie [ORFU]
CC: Steve Hepburn [ODT]
Subject: ORFU board responsible for paying the black tie dinner bill
Date: Fri, 14 Mar 2014 07:31:59 +1300

Friday 14th March 2014

Dear Doug

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

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

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

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

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

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

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

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

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

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

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

Yours sincerely

Bev Butler

——————————

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

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

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

D J Harvie
Partner

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

——————————

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

Dear Doug

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

Yours sincerely
Bev Butler

[ends]

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

Posted by Elizabeth Kerr

13 Comments

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Sweet nothings [email], yo Laurie and Wayne!

Received.

From: bevkiwi@hotmail.com
To: laurie.mains@comlink.co.nz; wgraham.admiral@ljh.co.nz
Subject: Defamation spoils
Date: Tue, 24 Jul 2012 15:11:40 +1200

Tuesday 24th July 2012

Dear Laurie and Wayne

The black tie dinner DVML bill has still not been paid.
Thought I would email you again and ask Laurie if his wife, Annemarie, intends paying back the $10,000+ she paid herself before paying all the other bills?
My understanding is that professional event organisers ALWAYS pay ALL the bills before handing over the ‘surplus’. Remember Jeremy Curragh stated that $52,000 went into the ‘pot’ but as we know some of the bills hadn’t been paid. Your mate, Ian Taylor, was obviously annoyed but as he has now quietened down, is it safe to assume he was paid off?

As for the defamation, if you get a nice wee tidy sum out of the ratepayers, what do you intend doing with it?
Will you pay the black tie dinner DVML bill then?
Or build another multi-million dollar house to make yourselves feel like you’ve really, really made it?
Maybe you could explain to me why you are suing Cull ie the city.
What did he say that was untrue? I read his comments and thought they were rather tame compared to what I think of the ORFU. As reported in the ODT I thought it was obscene the ORFU running off after their black tie dinner and not paying their bill for all the booze, food and cleaning. Still think that.

Spare a thought in your quieter moments, sitting in your multi-million dollar houses in Wanaka, for the little old ladies in South Dunedin who can’t afford to heat their homes in winter. Some of them go to bed during the day to keep warm. And you two still only see your glass as half full. Take another look. Your glasses are already bulging. Why do you want to take more money from the city, from the poor who barely have enough to keep themselves warm?

I hear your ‘feelings were hurt’ at the ORFU being referred to as ‘incompetent’.
Is it competent to run off without paying your bills?
Is it competent to put $52,000 in your own ‘pot’ and not pay those bills?
Is it competent to even call it a surplus when all the bills were not paid?
Is it competent to apply for grants from community trusts and then use that money for unauthorised purposes?
Is it competent to set up 3 pokies bars in South Auckland and siphon off the money ($6m) to ORFU?
Is it competent to run a business and spend more than you earn year after year after year?

Thought the following story just might reach your tenderloins if not your loins:

Poor pair give cash find to Brazil police (Link)
10:03 Tue Jul 10 2012AAP

A homeless Brazilian couple have found a garbage bag filled with money and promptly handed it to police.
Officials said the pair were out for a dawn stroll when they found a briefcase and a garbage bag filled with 20,000 reals ($A10,000).

They alerted police.

“When we arrived, the couple gave us the money. It might be the money stolen last week from a Japanese restaurant,” said military police spokesman Bruno dos Santos on Monday.

The pair “had the opportunity to flee with the money … What they did is commendable,” he said.
Jesus Silva Santos, the man who found the money, said he earned about 14 reals a day from collecting rubbish for recycling.

“My mother taught me never to steal,” he said.

Sincerely

Bev Butler

Ph 4776861

Posted by Elizabeth Kerr

3 Comments

Filed under Business, DCC, Economics, Events, Fun, Name, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums

New board for ORFU not formed, deadline shifts for bailout

### ODT Online Wed, 23 May 2012
Rugby: Wait for new ORFU board continues
By Steve Hepburn
The wait continues. The new board of the Otago Rugby Football Union was not named yesterday as expected as negotiations drag on over an agreement between parties involved in the bail-out of the union. The union came to an agreement with its major creditors in March to stave off liquidation and that agreement was to be finalised by the middle of this month. But contracts were still being worked on by parties and had not been signed off by yesterday.
Read more

QUESTION In light of revelations about the ORFU’s unauthorised use of funds received from charitable trusts to solve its liquidity problems, and if the ORFU has been trading while insolvent, is the Dunedin City Council reconsidering its position in regards to the ORFU bailout package? It should, the Council owes ORFU nothing.

Related Posts:
23.5.12 Latest: Oh, Mr Curragh… [emails]
22.5.12 Join ORFU board, without forensic audit to show how millions…
20.5.12 Update: Oh, Mr Curragh… [emails]
18.5.12 Oh, Mr Curragh… [emails]

Posted by Elizabeth Kerr

30 Comments

Filed under Business, DCC, DVML, Economics, Events, Media, Name, ORFU, People, Politics, Project management, Sport, Stadiums

Join ORFU board, without forensic audit to show how millions went west?

The Otago Daily Times believes the two members from the old board will be Andrew Rooney and John Faulks.

### ODT Online Tue, 22 May 2012
2 ORFU members retained?
By Steve Hepburn
The new board of the Otago Rugby Football Union is expected to be named today and is likely to include two faces from the old board. The six-member board was to have been named last Tuesday but legal issues and a short period to interview applicants and make appointments forced an extension.
Read more

[Eionland connections]

The six-member board?

● Andrew Rooney (Dunedin investment adviser, Forsyth Barr; Air Force Liaison Officer, Otago Region; former Engineering Officer, RNZAF; past chairman, Dunedin Rugby Football Club)

● John Faulks (Dunedin managing director S R M Realty Ltd – Southern Wide Real Estate; previously stock and station and banking industries; coached Otago junior age group teams)

● Simon Spark (Arrowtown self-employed contractor/linesman; co-owner of Dakins Waste Solutions Ltd; Arrowtown club president; news; Mr Nice Guy 2011)

● Keith Cooper (Dunedin chief executive, Silver Fern Farms)

● Doug Harvie (Dunedin chartered accountant, Harvie Green Wyatt)

● Kelvin Collins (Queenstown real estate agency owner, Harcourts; links with Wakatipu club)

Or simply ask ORFU change manager Jeremy Curragh about the trust monies that will need to be refunded as they weren’t spent on the authorised purpose; this “happened on a number of occasions due to ORFU facing cashflow problems”. He says “The money is not “missing” rather it was used to pay other creditors.” Link

Posted by Elizabeth Kerr

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