Former Kaipara District Council representative Jonathan Larsen may sue Auditor-General Lyn Provost over her lumping him in with council colleagues labelled "inept and incompetent".
He has told her he intends seeking council assistance to provide him with legal representation for a defamation action following the release last week of her 420-page report on her office's 20-month inquiry into council handling of the Mangawhai sewerage scheme.
Mismanagement of the sewerage project contributed to an $86 million debt blowout which led to the Government appointing four commissioners to take over governance of the Kaipara district from the council last year.
In a community briefing at Mangawhai last Tuesday, Mrs Provost apologised for "substandard" Audit Office work monitoring the council books.
Her report found "poor governance, poor decision-making and inadequate management" by the council.