Tag Archives: Ratepaters and residents

Audit NZ and OAG clean bill of health —Suspicious!

Received from Martin Legge
Saturday, 29 June 2013 9:53 a.m.

Learn how the Kaipara council was repeatedly given a clean bill of health by Audit NZ despite the massive debt and obvious governance problems.

Compares with how OAG assured me they were closely monitoring the TTCF investigation into how it was that ORFU and Racing were able to fleece $7 million from the South Auckland community. The truth is, DIA lost that file and therefore didn’t investigate and instead deliberately covered the loss up. OAG appear OK with this and issued DIA with a clean bill of health.

Our trust and faith in the work of these well resourced “highly educated desk jockeys” is misplaced!!!

### NZ Herald Online Saturday, 29 Jun 2013 8:48 AM
Fresh probe begins into debt-ridden council
By Andrew Laxon
The commissioners of debt-ridden Kaipara District Council have begun a new inquiry into its past financial decisions, including the advice it received from former chief executive Jack McKerchar. The tiny Northland council is struggling under an $80 million debt, a long-running rates strike and court action by its own ratepayers over more than $17 million of illegally set rates dating back to 2006. Its former councillors stepped down last year in response to a damning report, making way for Government-appointed commissioners.

Three inquiries are under way into what went wrong. They consist of

● An Auditor-General’s investigation into how the cost of a sewerage scheme at Mangawhai blew out from $11 million in 1999 to $62 million, creating most of the council’s debt.
● An independent inquiry into how the Audit Office failed to notice the excessive debt and repeatedly gave the council a clean bill of health.
● The commissioners’ investigation into other financial transactions they have discovered since taking over last September and see as questionable.

Northland MP Mike Sabin told Parliament ratepayers had been woefully let down by the council’s “mismanagement, incompetence, carelessness and dysfunctional governance”. Mr Sabin, who is sponsoring a local bill to retrospectively validate the illegal rates, said the bill was necessary to keep the council functioning but it would not allow anyone responsible for poor decisions to duck the consequences.
The separate inquiry into the Audit Office’s actions, undertaken by Auditing and Assurance Standards Board chairman Neil Cherry, was not finished.
Read more

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31.3.13 DIA and OAG stuff up bigtime #pokierorts
21.2.13 DIA, SFO investigation #pokierorts
3.11.12 Stadium: DCC caught in headlights
29.10.12 DCC consolidated debt substantially more than $616m
21.2.12 Kaipara this time

Posted by Elizabeth Kerr

7 Comments

Filed under Business, DCC, Economics, Geography, Media, Name, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, What stadium

DCC debt —Cr Vandervis

Email received.

From: Lee Vandervis
To: Elizabeth Kerr
Sent: Wednesday, December 05, 2012 10:12 PM
Subject: DScene opinion.

I thought my DScene Debt Update was not bad for a 400 word limit, but despite coming within the limit [382 words], the Editor cut the Mayoral criticism out of my opinion, and more importantly my solutions to worsening debt, without noting abridgement! {See comment. -Eds}

Dunedin Debt Denial

At last week’s DCC Finance, Strategy and Development meeting where the last quarter’s financial results were presented, Cr MacTavish asked “Are we doing things differently?”

The DCC net debt chart [attached] shows the past ten years of the same massive debt spending, with future projections hoping for small annual reductions.

These future debt reductions are currently vain hopes.

Despite the earnest efforts of our new CEO to reduce ridiculously high DCC operational costs, unplanned extra debt keeps arriving.

DCHL’s planned annual funding profit of $23 million turned out to be a $5 million loss, DVL lost $4 million, DVML lost $3 million, the Milburn Wood Processing Plant suffered a $3 million write-down, the Chinese Garden continues to lose half a million annually, Toitu Settlers losses will dwarf this, another half million at least has been lost due to the Anzac Avenue site access dispute, the expected $5 million ‘saving’ from Town Hall cutbacks has evaporated, the budgeted Carisbrook sale ‘profit’ of $4 million still hasn’t eventuated, and $3 million of unearned dividend has been spent from the Waipori Fund.

Then there are some less obvious reservoirs of mounting debt.

Development Contributions income has stalled for another year, our lines company Aurora has apparently failed to keep up lines maintenance of a rumoured $40 million in recent years, and our unseen drainage system maintenance/renewals backlog may dwarf the Aurora maintenance bill.

In short, we have bought a new Stadium and much else without being able to pay for it.

Standard and Poor’s threaten an interest-increasing downgrade especially if the Jacks Point/Luggate debacle blows up, and the fuse has already been lit.

To answer Cr MacTavish’s question, we are not yet doing things differently.

The direction of this Council remains unsustainable. Soothing talk by our Mayor Cull of ‘no drop in service levels’, ‘no slash and burn staff cuts’, ‘no witch hunt’ of directors, ‘no heads will roll’, means that the same heads will continue to inflate Dunedin’s debt disaster.

We must do things differently and cut service levels, staff numbers, consultant use, habitual tenders, outside directorships and bring our DCC owned companies’ governance back in-house where we can know what they are doing. [cut out by DScene Editor without noting abridgement]

In a rapidly changing world, it is only by doing things differently that Dunedin can reach its wonderful and sustainable potential.

[ends]

DScene 5.12.12 Debt-laden council needs to change tack #bookmark

Posted by Elizabeth Kerr

2 Comments

Filed under Business, Construction, DCC, DCHL, DVL, DVML, Economics, Geography, Heritage, Media, Name, People, Politics, Project management, Property, Site, Sport, Stadiums, Town planning, Urban design