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The Auditor-General Lyn Provost has today re-released a decision to decline reporting on the failed Mangawhai wastewater scheme, which was released 12 months ago.
In a statement to media, Ms Provost said that after receiving requests to do so, she has reconsidered her previous decision not to make a report under section 44 of the Local Government Act 2002 (the Act) about any losses incurred by the Kaipara District Council in respect of the Mangawhai wastewater scheme.
She says she reconsidered her decision “because the Mangawhai Residents & Ratepayers Association (MRRA) and the Council asked me to”
However, MRRA chair Bruce Rogan says that while MRRA did request the report, that request was made over 12 months ago.
“The Auditor General released her decision without satisfactory reasons and it was accepted by MRRA,” he says.
“We did not ask her to reconsider that decision and I have no idea why she would issue this statement again.
“It is an amazing coincidence that it comes just four days before MRRA’s Court of Appeal hearing in Wellington.”
Under section 44 of the Local Government Act 2002, the Auditor General is empowered to investigate the liability of elected Council representatives and officers to determine whether negligence or gross incompetence were factors in the scheme’s failure.
Her report would have been tabled in Parliament, where a decision could have been made on whether or not to pursue or recover losses.
In today’s media release, Ms Provost says that there would be almost no utility in making a report under section 44 about any losses that may have been incurred by the Kaipara District Council for the Mangawhai scheme.
“A section 44 report would be a time and resource intensive further inquiry, where it would be almost impossible to objectively identify and quantify actual losses, and with almost no prospect of losses being recovered, in a context where detailed inquiry into the situation and recommendations about preventing similar losses in future have already been publicly made,” she says.
The Auditor General’s full report can be read here.
MRRA is appealing the findings of a High Court judicial review where Justice Paul Heath found outstanding rates needed to be paid because of the Government’s validation, even though they were proved to be incorrectly set.
The appeal will be heard in Wellington on August 25 and 26.
