Tag Archives: Office of the Auditor-General

Profligate behaviour : MYTH paraded as fact…… just like Aurora Energy’s propaganda campaign

Council infrastructure and networks committee chairwoman Cr Kate Wilson said last night the project would go ahead “regardless”. There was funding for three years, she said, and the fourth year’s funding would be part of next year’s long-term plan, and the one after that. The project was needed for safety reasons to prevent vehicles driving into the harbour and climate change making the road undriveable. (ODT) *Emphasis by whatifdunedin

Yeah right.

### ODT Online Fri, 26 May 2017
Botched cycleway estimate short by $13m
By David Loughrey
A bungled Dunedin City Council cost estimate to complete safety improvements and a cycle/walkway on Otago Peninsula has left the project more than $13 million short. The council announced yesterday an estimate for the project on Portobello Rd and Harington Point Rd that includes a cycle/walkway from Taiaroa Head to the city had risen from $20 million to $49 million. The earlier estimate, drawn up  in 2011, did not include parts of the cycleway to be built, land that had to be bought and a contingency fund to cover unforeseen expenses. […] Despite the cost rise, the council will start construction this year, with a shared cycle/walkway design.
Read more

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Powerlines at sunset [garp.com]

Meanwhile WE will be paying for our Otago power network TWICE, at a crippling cost to business and residential power consumers well into the future —thanks to Dunedin City Council’s unsatisfactory governance of the companies Aurora Energy / Delta Utility Services and Dunedin City Holdings and, above all, the Council’s unfettered use of public funds to realise the dream of the Tartan Mafia and Professional Rugby to build the now frequently empty and under-utilised Forsyth Barr Stadium. (three concerts by Ed Sheeran in highly doubtful acoustic conditions inside ‘the roof’ does not a Christmas make).

All this because the Council conveniently fails to ensure it covers the infrastructural basics (in this instance: the safe, secure and continuous supply of electricity) – affordably – for the static if bearly stable City of Dunedin, and the sparcely populated Otago region in the mode of fast pumping growth. (There are simply too few permanent ratepayers to uphold ‘big bloated dreams’ and money siphoning on the rates take).

The Council did not ensure that Aurora Energy / Delta Utility Services were sufficiently well structured to Avoid profligate spending, making subvention payments to the stadium companies, or borrowing to pay dividends to the Council. (Probably the least of it).

There have been YEARS of dangerous neglect, embellishing the lack of repair and upgrade to the Community of Otago’s electricity network.

The Council is not well enough controlled (corporate and financial oversight) in order to Avoid its own profligate spending —so to protect, support and upgrade Otago’s power network as the solid basis for regional economic development and SAFE living —with CERTAINTY and SECURITY OF SUPPLY.

Instead, The People will now be plunged into further debt by the circus wheel of local body politicians and the morally thin and rather malevolent boards of directors (masters of spin) controlling the companies.

It’s time the People of Dunedin and Otago took control of their power infrastructure. Resolving, if they will, to adopt a different ownership and delivery model – one option is to form a democratically elected Community Power Trust to own and oversee the network; this is a sound regional model that is proven to work in other jurisdictions, with all due care.

WE have to Safeguard our future.
Not leave decision-making to unvetted members of the Tartan Mafia.
Especially not those in thrall to the likes of Gordon Stewart and his ilk (a vague reference to Delta’s speculative dealings at Yaldhurst, Christchurch – Delta is presently in a discovery process via an action brought to the Christchurch High Court by Caveators claiming Constructive Fraud).

DO NOT sell the ‘fragments remaining’ of the Otago Power Network (as bleated by some in power who can’t/won’t maintain a local body balance sheet – like you trust them, already?!) – to overseas corporates who will hike power prices disastrously to satisfy their shareholders.

Proceed carefully, OTAGO.

ASK QUESTIONS. RESEARCH. DO YOUR SUMS.
DON’T BE TOLD WHAT TO DO. ACT RESPONSIBLY FOR THE FUTURE PROSPERITY OF YOUR KITH AND KIN.
DO NOT PLACE FAITH IN OLD SPIN MAESTERS AND THEIR DEPUTIES.

We’ve seen them all before and have the new $1+ BILLION ‘invoice’ from Aurora Energy to prove it. Yes, we thought we had already paid over that amount in electricity and lines dues.

The suited ones bringing the clamour are looking after themselves – not US, not OUR COMMUNITY.

This is now a ransom.

The UGLY sister companies remain joined at the hip : Delta is Aurora Energy’s “preferred contractor”. And Steve is new, so don’t blame him! ….Really?

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[propaganda – Aurora Energy]

After facing unrelenting pressure to up its game, Aurora Energy says it has stepped up to the challenge.

Sat, 27 May 2017
Dawn of a new Aurora era
By Vaughan Elder
Aurora chairman Steve Thompson said it had been under the “spotlight and the heat lamp” since accusations broke last October that it was endangering the public and workers by leaving its network, and in particular power poles, to deteriorate. That pressure turned ugly at times and workers had been verbally abused, including while out doing their supermarket shopping. Mr Thompson blamed the abuse on what he described as unfair criticism and media coverage. But Mr Thompson said in the face of adversity, Aurora and its sister company Delta had achieved a “hell of a lot” in a short space of time. The two companies were well on their way to splitting up in a divorce which Mr Thompson said would cost money in the short-term but reap huge benefits in the long-term. Aurora was also mid-way through an ambitious accelerated pole replacement programme and this week announced a $720million plan to upgrade its ageing network.
….Mr Thompson said its actions should help renew the public’s faith in both companies, but emphasised he believed that faith had been unfairly shaken by what he described as over-the-top criticism in the past seven months. He said safety concerns about the 2910 red-tagged poles across Dunedin, Central Otago and Queenstown Lakes had been overblown. At the same time, Delta and Aurora’s efforts to confront the problem, both before and after the story broke in October, had been under-reported, he said.
….Despite his anger at the way Aurora had been treated by critics and in the Otago Daily Times, he was under no illusion the network was in top shape, saying it was the second oldest network in New Zealand and acknowledged major work was needed to improve it in the next 10 years. But he would not be drawn on whether the situation had come about as a result of decades of underinvestment, which has been one of the main criticisms levelled at Aurora since October. He said he was not in a position to comment given he only started midway through last year.
Read more

CRITICAL ABHORRENCE FOR TOP CHAPS IN THE AURORA / DELTA / DCHL ‘EXECUTIVE’ (PAST AND PRESENT) WILL CONTINUE UNABATED IN THE PUBLIC SPHERE UNTIL THEY AND THEIR FRIENDS ARE OUSTED AND MADE ANSWERABLE TO HIGHER AUTHORITIES.

Otago people must busy themselves.
Time for formal inquiries. Time to REMODEL.

Related Post and Coments:
24.5.17 SCANDAL : Aurora Energy Ltd set to burden Otago ratepayers and residents with massive rates increases

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

Posted by Elizabeth Kerr

This post is offered in the public interest.

9 Comments

Filed under Aurora Energy, Business, Central Otago, Climate change, Construction, Cycle network, DCC, DCHL, Delta, Democracy, Design, Dunedin, DVL, DVML, Economics, Education, Electricity, Events, Finance, Geography, Health & Safety, Infrastructure, LTP/AP, Media, Name, New Zealand, NZTA, OAG, Ombudsman, ORFU, People, Perversion, Pet projects, Politics, Project management, Property, Public interest, Queenstown Lakes, Resource management, SFO, Site, Sport, Stadiums, Technology, Tourism, Town planning, Transportation, Travesty, Urban design

SCANDAL : Aurora Energy Ltd set to burden Otago ratepayers and residents with massive rates increases

At Facebook:

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“Overall, the planning period will be characterised by the delivery of the largest work programme in Aurora Energy’s history.” –Steve Thompson

Read: The Otago power network is THAT DEGRADED – caused by various rugby supporting and clip-ticket gentlemen, whose names we all know so well. Described by civil words (not cuss words) that start with F and C.

The “laundry” was well and truly harsh, leaving the network in threadbare tatters…. while private pockets were filled. That’s One Billion Dollars worth of power asset the Otago ratepayers have had to pay for TWICE. Talk about ‘power’ and corruption, Bryce Edwards (?) – Dunedin in the last 30 years was built on it, solidly at source.

The “gents” might like to explain where all the money went, and how the hell they think they can make us pay for their near limitless mismanagement and fully reckless endangerment (to workers, citizens and the regional economy) over three decades …..without shoving them in deep at the NZ Court system —for processing.

█ Today an Aurora/Delta executive had the audacity (after spinning out their LGOIMA response to the 20th working day, following my request made 26 April) to want to charge me for official information at the vindictive “maximum charge” (their words) of $190.00. Shove that, boys. Other council owned companies have provided the information free of charge and very promptly and courteously.

Tuck it back in your pants Aurora/Delta, or be sliced.

At Facebook:

● Aurora will spend $347 million on asset renewal, including a total of 14,000 poles…..

### ODT Online Wed, 24 May 2017
Aurora plans $720m upgrade of network
By Vaughan Elder
Aurora Energy has unveiled a $720 million plan to upgrade its ageing electricity network over the next decade. The plan is a more than $300 million increase on the 10-year plan the Dunedin City Council owned company released last year. […] In a press release this afternoon, Aurora Energy said the plan would have an extensive impact on the region’s economy through job creation and spill-over benefits to other businesses. […] Other major projects included a new substation at Carisbrook, which would replace the 60-year-old Neville St substation by 2019 and a new Wanaka substation on Riverbank Rd, Wanaka. […] Aurora Energy chairman Steve Thompson said an additional $81 million would be spent on growth and security of supply projects to support the region. […] The remaining expenditure was tagged to maintenance and operating expenditure ($192 million), and capital expenditure primarily related to new consumer connections and safety and reliability ($101 million).
Read more

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The vertiginous mountain of HEALTH AND SAFETY DANGERS due to Aurora mismanagement and neglect of the power asset across Otago.

And the WorkSafe option could be “…..an infringement notice”, possibly not PROSECUTION.

Hmm, have the good old boys been dealing in the way they usually deal ??? Is WorkSafe a soft touch. To date it certainly hasn’t been Acute. Or at all worried about the danger to electrical workers or the general public. What a damnably prolonged and sordid farce this is.

### ODT Online Wed, 24 May 2017
No decision to prosecute Aurora
By Vaughan Elder
Worksafe is yet to decide whether it will prosecute Aurora Energy over the state of its power poles. WorkSafe has been looking into Aurora and its sister company Delta since October over accusations dangerous power poles across Dunedin, Central Otago and Queenstown Lakes were putting the public at risk. The government entity gave fresh details about its audit of the two companies in response to an Official Information Act request from the Otago Daily Times. WorkSafe high hazards and energy safety general manager Wayne Vernon said it had completed an “initial” audit of a sample of the network’s assets and provided a report to Aurora. […] “WorkSafe has not to date made a decision to prosecute or not to prosecute Aurora over health and safety issues associated with the state of its poles.” Mr Vernon emphasised prosecution was one of many options available to it, which also included issuing instructions to remove or minimise the potential for danger and issuing an infringement notice.
Read more

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

Posted by Elizabeth Kerr

This post is offered in the public interest.

14 Comments

Filed under Aurora Energy, Business, Central Otago, Construction, DCC, DCHL, DCTL, Delta, Democracy, Design, Dunedin, DVL, DVML, Economics, Education, Electricity, Finance, Health & Safety, Highlanders, Infrastructure, LTP/AP, Media, Name, New Zealand, NZRU, OAG, Ombudsman, ORFU, People, Perversion, Pet projects, Politics, Project management, Property, Public interest, Queenstown Lakes, Resource management, SFO, Site, Sport, Stadiums, Technology, Tourism, Town planning, Travesty, Urban design

Democracy, a little strange looking here and there

ODT 12.5.17 (page 16)

Not sure the above is the “nature of democracy”.
Ownership more often than not has rights to what Democracy might be, for better or worse. Democracy is the dull moving target around traction of tolerance and accommodation, alternately characterised by recklessness, drilling, handholding, gutless audacity and full oppositional war. And finally, perhaps, it is Comedy of Errors (the big CE) – to do with pique, vanity, providence, chess-like cunning, ill temper and quarrelsome kicks, artful dodging, strange bed fellows, lousy cracks at definition, ruthless assaults and incursions, “Territory”, chiming disgust, stiff ultimatums, the surrender to power, corruption or fraud…..and all notions, wagons, bonfires that encircle ‘the final word’ and last stands, angry trumpet votes to Brexit, chaste lookalikes, injury, ill health….. Jesus weeps.

### ODT Online Wed, 12 Apr 2017
Hospital rebuild: back off but don’t back down
By Hilary Calvert
OPINION If we asked Otago people what they most want from health services it would likely be health service delivery in the province at least as good as the rest of New Zealand. For example, whatever qualifies for an operation here should be the same that qualifies those up north. The Dunedin School of Medicine is vital to us as well. […] What if harassing of the Government in an imagined party political fashion just makes the Government determined to not give us what we want, since we will likely vote two local Labour people into Parliament this year? If we concentrate on telling the Government what we most want, and stop trying to tell it how it should deliver the services, we have a much better chance of getting the best result.
Read more

Comment to What if? Dunedin:

Diane Yeldon
April 14, 2017 at 11:10 pm
“Harassing of the Government in an imagined party political fashion.” Well said by Hilary Calvert. Spot on!
Here’s the meeting video for 21 Feb. Starting from 1.58.24 into the video, you can watch the discussion on the resolution which authorised the [Dunedin Hospital SOS] campaign. This was the Notice of Motion put forward by Cr Benson-Pope and seconded by Cr Hawkins.
There was no information in the agenda about how much the ‘asking for support’ would cost or how the ‘asking for support’ would be carried out. Nor did any councillors ask questions about this. Their attention was focused solely on discussing the rights and wrongs of the hospital siting (with only a couple of councillors saying they didn’t think it was any of their business.)
I can’t help wondering if many of the councillors did not understood that this ‘asking for support’ would result in unleashing a full-blown advertising campaign with leaflet drop, website and newspaper ads costing so far $12,000! I wonder if the motion had been taken in two parts with the second part only about the campaign and its full extent and costs disclosed the majority would have still voted in favour.

Dunedin City Council Published on Feb 26, 2017
Dunedin City Council – Public Forum + Council Meeting – 21 February 2017
Minutes, agendas and reports related to this meeting can be found at https://goo.gl/Eis3sK

[decisionmaker.co.nz] formatted by whatifdunedin

Related Posts and Comments:
● 8.4.17 Questions over Council’s Dunedin Hospital SOS campaign
● 6.4.17 ODT editor comments strongly #tick —Dunedin Hospital rebuild
● 27.3.17 Site Notice #DunedinHospital
● 26.2.17 Dunedin Hospital Redevelopment
● 6.2.17 Let the Ombudsman recommend for democracy at SDHB
● 24.1.17 SDHB/Govt : Physio Pool GRIEF
● 9.1.17 Audit NZ admonishes commissioner Grant and SDHB #Health
● 18.12.16 DCC set to take away CBD car parks without Economic Impact research
20.11.16 Delta at Dunedin Hospital #worseluck
7.11.16 SDHB #FAILS with Healthcare Communication and Governance

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: batmanrobin by Mike Luckovich 2016 @njc.com [via truthdig.com] tweaked by whatifdunedin

32 Comments

Filed under Architecture, Business, Construction, DCC, Democracy, Design, District Plan, Dunedin, Economics, Education, Finance, Geography, Health, Health & Safety, Heritage, Hospital, Hot air, Infrastructure, LTP/AP, Media, New Zealand, OAG, Ombudsman, People, Perversion, Pet projects, Politics, Project management, Property, Proposed 2GP, Public interest, Resource management, SDHB, Site, Technology, Town planning, Transportation, Travesty, University of Otago, Urban design, What stadium

Questions over Council’s Dunedin Hospital SOS campaign

Received from Diane Yeldon
Fri, 7 April 2017 at 4:06 p.m.

OPINION

What’s wrong with the DCC Dunedin Hospital SOS Campaign?

If you clear away all the smoke from the party-political bluster, bickering and name–calling arising over this campaign, has the Dunedin City Council really done anything out of order? Or were some councillors, in fact, a majority, just trying to do their best for the people of Dunedin?

Unfortunately, the road to hell can be paved with good intentions. A council communication cannot be a political advertisement.

The Electoral Act more or less defines a political advertisement as anything which persuades or encourages voters to vote in a particular way. But our democratic rights to participate in government decision-making are not limited to voting once every three years. Citizens also have the right to petition Government, make submissions to select committees and other public authorities and deliberative bodies, and lobby MPs and Government Ministers.

If local councillors had been presented with a motion which proposed the following : that the Council encourages and persuades voters to choose candidate A, they would have rightly been horrified and would have rejected it.

In comparison, a single, short and final paragraph in a council motion which proposes that the Council should ask for public support for ONLY its own preferred position on a central government decision, and that people make such views known to central government, looks harmless and is quite likely to pass unnoticed – and, in fact, did. But it is just as political. It encourages people to use their democratic rights in a particular way.

The council staff should have alerted councillors that this was the case and that such political activism was beyond the proper scope of any local body. The difference in wording may be subtle but the democratic principles involved are significant and far-reaching.

Monday, 3 April 2017

[ends]

Dunedin City Council’s Dunedin Hospital SOS petition states:
“I demand that central government redevelops Dunedin Hospital in the centre of the city. The government must also make a clear commitment to retain a top flight teaching hospital for Dunedin and the wider Otago/Southland region.
Save Our Site. Save Our Services.”

Petition at the DCC-managed SOS website [framed screenshot]

At the bottom of the webpage, DCC says:
“Dunedin Hospital SOS
The Dunedin City Council (“DCC”, “we”, “us”, or “our”) operates, hosts, or manages a number of websites, including DunedinHospitalSOS.nz. This site was created and funded following a Council resolution (21 February 2017) to communicate to Government its complete opposition to a rebuild of Dunedin Hospital outside the central city. It is not a permanent website.”

How the petition got off the ground by Council vote (21 February 2017) on the Notice of Motion:

[screenshots – click to enlarge]

DCC Council 21.2.17 Agenda – 15 Notice of Motion Dunedin Hospital Rebuild

DCC Council 21.2.17 Minutes – 15 Notice of Motion Dunedin Hospital Rebuild

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The DCC Dunedin Hospital SOS flyer and Facebook campaign cost Ratepayers $7,102 (excl GST). Ratepayers also find themselves footing the bill for a DCC-led SOS media campaign:

ODT Online 8.4.17 [screenshot]

Related Posts and Comments:
● 6.4.17 ODT editor comments strongly #tick —Dunedin Hospital rebuild
● 27.3.17 Site Notice #DunedinHospital
● 26.2.17 Dunedin Hospital Redevelopment
● 6.2.17 Let the Ombudsman recommend for democracy at SDHB
● 24.1.17 SDHB/Govt : Physio Pool GRIEF
● 9.1.17 Audit NZ admonishes commissioner Grant and SDHB #Health
● 18.12.16 DCC set to take away CBD car parks without Economic Impact research
20.11.16 Delta at Dunedin Hospital #worseluck
7.11.16 SDHB #FAILS with Healthcare Communication and Governance

█ For more, enter the terms *hospital*, *sdhb* and *swann* in the search box at right.

Posted by Elizabeth Kerr

This post is offered in the public interest.

54 Comments

Filed under Business, DCC, Democracy, Dunedin, Education, Finance, Health, Hospital, Hot air, Infrastructure, Media, Name, New Zealand, OAG, Ombudsman, People, Pet projects, Pics, Politics, Project management, Property, Public interest, Resource management, SDHB, Site, Town planning, Transportation, Travesty, University of Otago, Urban design, What stadium

Gurglars visits the Delta/Noble JV subdivision at Yaldhurst

Received from Gurglars
14/02/2017 9:07 p.m.

yaldhurst14-2-17-1George Noble Rd, Yaldhurst

yaldhurst14-2-17-2Who wants to live near power lines? They run right through the subdivision.

yaldhurst14-2-17-3No one is working at Yaldy, this glass has been on the road for a long time.

yaldhurst14-2-17-5A digger strategically placed to suggest action – reality, inaction.

yaldhurst14-2-17-4The crowning glory – unbelievable, no ads for Yaldhurst sales but an ad on the property for a subdivision near Pegasus!

whatifdunedin replies:
Nearby subdivisions sold well with power lines and pylons…
Weird mentality at CHC.

That hoarding (not that old… months only) originally featured marketing for the commercial area at the Yaldhurst subdivision. Recently pasted over with Infinity’s other project.

[“Ravenswood, half an hour north of Christchurch, is being offered for sale by developer Infinity Investment Group, which says the project is too big for it.” See last note at (28.3.15) Stuff: Gloomy outlook for solar housing in Christchurch; and (9.8.16) Stuff: Work to begin on Ravenswood development after sale abandoned.]

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Received from Gurglars
2017/02/15 at 6:51 am

News Flash
The word on the street is that a well-heeled solid respectable group offered $12,000,000 actual cash, money, moolah, for Yaldhurst.
The idiotii accepted a notional nonexistent $13million from a $1000 capitalised company who have subsequently made no moves towards repair, consents, or even inspected their new purchase.
If they have inspected it, one would have thought they would clean glass from the road (been there so long it’s almost fused and embedded). Maybe they would have mowed the grass? Or perhaps they would have found the keys to the lone token digger. Having commenced these $5 dollar cleanups they may have been able to put a sign up advertising the properties.
And why is activity important to a Dunedin ratepayer or councillor?
Because honey, we do not get any money until they sell profitable sections.
That’s why the $12,000,000 cash was the only offer that the idiotii should have accepted and folks that’s why you do NOT elect Greens, flakes and dreamers, because it’s your money they have, and will enjoy wasting.

whatifdunedin replies:
Your point is well made, Gurglars. But. It’s much more complicated than that. Seller was the buyer. And we have Graham Crombie (accountant!) as middle man, we wonder who he is really working for, Gordon Stewart? Justin Prain? Murray Frost? Previously/still, Stuart McLauchlan? Who.

Posted by Elizabeth Kerr

This post is offered in the public interest.

5 Comments

Filed under Business, Construction, DCC, DCHL, DCTL, Delta, Democracy, Design, Economics, Finance, Geography, Housing, Infrastructure, Name, New Zealand, OAG, Ombudsman, People, Perversion, Pet projects, Politics, Project management, Property, Public interest, Resource management, SFO, Site, Town planning, Transportation, Travesty, Urban design, What stadium

Hilary Calvert complaint to Auditor-General #DCHL

DCHL chairman Graham Crombie rejected Ms Calvert’s allegation of “misleading” councillors during a two-and-a-half-hour discussion on the controversial $13million Delta refinancing last year. (ODT)

### ODT Online: Thu, 2 Feb 2017
Allegation councillors were misled
By Simon Hartley
A complaint filed to the auditor-general by former Dunedin city councillor Hilary Calvert claims “misleading” information was presented to councillors over the contentious Yaldhurst property development in Christchurch. Council-owned Delta became enmeshed in Yaldhurst when it made incremental loans to the initial developer for its infrastructure work, to the tune of more than $13 million from 2009-13. Ms Calvert, a Dunedin lawyer, sent a copy of her complaint to the Otago Daily Times yesterday.
Ms Calvert said in the August meeting DCHL recommended to all councillors they accept the proposal to refinance Delta’s debt, with a new loan agreement with Infinity Group. However, Ms Calvert claims it was not a loan agreement directly with Infinity Group, a successful multimillion-dollar Wanaka company, but a new “shell company”, Yaldhurst Infinity Ltd. Ms Calvert contends it was “misleading” of DCHL to provide details of Infinity Group and its proven track record, in order to have the loan approved to Yaldhurst Infinity Ltd, “which would never have been worthy of lending $13.4 million to”.
Read more

A March 2014 auditor-general inquiry into Delta over Luggate and Jacks Point was highly critical, noting the use of “artificial business structures to avoid public accountability” and a “lack of strategic and performance monitoring” of investments, among other findings. (ODT)

Note: Hilary Calvert is not complaining about the Council meeting held on Monday, 1 August 2016. Her complaint is with the reports received in that meeting pertaining to the decision sought from Council by Dunedin City Holdings Ltd (DCHL).

****

Email received:

Date: Thu, 2 Feb 2017 11:46:31 +1300
From: Hilary Calvert
To: Elizabeth Kerr

Media release below.
Other papers attached

Dunedin City Council companies facing new accusation of misleading conduct  
 
Hilary Calvert, a former Dunedin City Councillor, has today forwarded a complaint to the Auditor General’s office concerning the wrong information provided by DCHL surrounding the loan of $13 million made by Delta Utility Services Ltd, to a company which purchased the failed Christchurch Yaldhurst development.
 
Ms Calvert complains that the information provided to the Dunedin City Council to encourage it to approve the loan included financial statements and benefits including that the proposed borrower ‘has an excellent track record’ and ‘already has a strong presence in Christchurch…’ whereas in reality the company which was to borrow the money turned out to be a newly formed company, likely formed with the specific intention of avoiding having the company with the ‘track record’ standing behind the debt.
 
‘There is something very wrong if the Audit Office were to think it OK for a Council owned company to get a Council to agree to a $13 million loan using the details of a reputable trading company in place of those of the insubstantial shell company which was actually borrowing the money.’ said Ms Calvert.
 
If such statements were in a prospectus, which is after all an invitation to the public to give over their money, there could well be implications of prison being bandied about. And Council money is public money, even if this report was not governed by the rules surrounding issuing a prospectus.
 
It was only by chance the Council meeting picked up from an aside that the loan would be to a new unproven company with no obvious assets.
 
When asked why the company described in the papers was not borrowing the money and doing the development themselves, The DCC was told that it was good practice to set up a different company. *
 
It may be good practice for a borrower to try it on, but it would not be good practice for a lender to accept. Any bank would demand a guarantee from the parent company, something which DCHL says is not in place with this loan.
 
To add insult to injury, DCHL is refusing to provide details of the loan under Local Government Official Information and Meetings Act so we still cannot know what deal has been actually made using Dunedin Ratepayers money.
 
The Audit Office is responsible for ensuring that public entities carry out their business with probity and financial prudence.
 
‘It is time to call enough for Council companies treating Council like mushrooms, kept in the dark and fed manure.” said Ms Calvert.
 
*In fact a similar manoeuvre happened with the same company, Infinity Investment Group Holdings Ltd, concerning the Pegasus development, where some $80 million was lost without IIGHL having to stand behind the company formed there either.
 
Hilary Calvert

Attachments:
LGOIMA information release – DCHL to Council 1 August 2016
Request for examination 31.1.17

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

Posted by Elizabeth Kerr

This post is offered in the public interest.

16 Comments

Filed under Business, DCC, DCHL, Delta, Democracy, Dunedin, Economics, Finance, Infrastructure, Media, Name, New Zealand, OAG, People, Politics, Project management, Property, Public interest, Site, Travesty

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?

pothead-photo-supplied-by-richard-healeyOr 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

Posted by Elizabeth Kerr

This post is offered in the public interest.

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

9 Comments

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