Councillors allege excessive spending

Auckland Councillors John Watson and Mike Lee recently lodged a formal complaint with the auditor-general regarding the payment of more than $3.5 million by Auckland Council  to Australian consultants Flagstaff Consulting Group for advice relating to council asset sales – the sale of Auckland International Airport shares and the proposed lease of the Port Of Auckland.

Approximately $2m was paid for the advice on the Port of Auckland, which didn’t proceed, and $1.5m in regard to the airport shares.

The councillors, who both opposed the sale of the airport shares, have also questioned $135,000 worth of ‘out of pocket expenses’ paid to the company.

Council says the advice, commissioned by officials, was independent and the fixed-price fee was payable to Flagstaff for further work, if the council opted to proceed with the sale.