Network inquiry requested

The Auditor-General has been asked to investigate the establishment of Networks South, the management company for Oamaru-based electricity lines company Network Waitaki and its Timaru counterpart, Alpine Energy.

Network Waitaki is owned by the Waitaki Power Trust, but trustee Dennis Norman is concerned it did not ask for the trust's approval before establishing the management company in March.

Mr Norman, through his lawyer, has asked Auditor-General David Macdonald to conduct "an urgent investigation of the circumstances surrounding the setting up" of Networks South.

Mr Norman said it was inappropriate for the company to proceed with the joint management company proposal without the formal and informal consent of the trust.

He was concerned that the company's actions could pre-empt next year's review of how Network Waitaki was owned.

Network Waitaki chairman Ken Scott declined to comment yesterday but said the company was preparing a considered response.

- NZPA