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Kaipara District Council (KDC) procurement, contract management and governance practices are under scrutiny after “weaknesses” in its approach to procurement were identified during an annual audit.
The Audit Office (AO) – the independent government agency responsible for auditing public organisations and ensuring public money is used appropriately – says roading contracts and emergency works spending will be a particular focus during the inquiry.
“The annual audit has highlighted weaknesses in the council’s approach to procurement,” it says. “In recent years, we have also received several requests to inquire into the council’s spending decisions, and how it identifies and manages potential conflicts of interest relating to roading contracts.”
With roading accounting for council’s largest area of spending, around $36 million in the 2024/25 financial year, the inquiry will examine how KDC procures and manages the contracts. The AO says it is essential that council can demonstrate that it has procured and managed these contracts in a way that promotes value for money and maintains public trust.
Attention will also be given to emergency procurement processes, including spending related to Cyclone Gabrielle recovery works and the storm and subsequent flooding that impacted Mangawhai in February 2023.
The AO says the inquiry will be conducted confidentially and will not make any further comment while it is underway. The terms of reference into the inquiry can be found on the Audit Office website:
ao.parliament.nz
