Tag Archives: Tartan Mafia

DCHL/Aurora/Delta unravelling


Garrick Tremain – 15 Dec 2016

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

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

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

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

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

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

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

[ends]

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

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

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

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

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

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

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

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

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

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

****

ODT 15.12.16 (page 16)

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

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

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: ngaitahutourism.co.nz – stuart mclauchlan

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

At Facebook:

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

Posted by Elizabeth Kerr

This post is offered in the public interest.

2 Comments

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

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

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

What Shocks.

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

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

We can’t call them liars.

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

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

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

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

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

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

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

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

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

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

Who is responsible?
—Dunedin City Council, sir.

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

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

Posted by Elizabeth Kerr

This post is offered in the public interest.

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

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Deloitte report released #Delta #Aurora

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

aurora-report [supplied by DCC]

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

Grady’s future is between the lines.

2016-12-13-01-10-57

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

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

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

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

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

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

Posted by Elizabeth Kerr

This post is offered in the public interest.

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Deloitte report pending —Public Notice at ODT | Facebook entry

ODT 9.12.16 (page 20)

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

Facebook: Richard Healey

richard-healey-facebook-9-12-16

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

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

Posted by Elizabeth Kerr

This post is offered in the public interest.

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

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

Posted by Elizabeth Kerr

This post is offered in the public interest.

3 Comments

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

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

Lies, damned lies and Delta

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

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

Here’s the bit most people will miss:

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

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

Here’s the release:

2 December 2016

Media Release

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

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

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

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

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

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

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

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

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

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

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

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

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

RJH: finally, something we can agree on.

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

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

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

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

For media enquiries, please contact:

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

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

Here’s my view.

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

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

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

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

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

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

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

Roger Steel must be spinning in his grave.

Shame on you all.

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

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

Source: FB post

Posted by Elizabeth Kerr

This post is offered in the public interest.

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