Spotlight goes on council processes

Mayor John Carter

The Far North District Council is to conduct an independent review of its procurement processes, following the High Court's finding that Kaikohe firm Rintoul Group had been unfairly excluded from four cycle trail tenders.

Mayor John Carter said a proposal to set up a review panel would be tabled at the full council meeting on June 22, to ensure all procurement processes were fair and robust. The panel would sit as soon as possible.

"Some concerns have been expressed about our tender and procurement procedures following a dispute with a local contractor that went to the High Court," Mr Carter said.

"This review will look at all our procurement procedures, and where it finds fault, changes will be made. Our aim is for all contractors, residents and ratepayers to be confident that our procedures are fair, robust and transparent."

The review proposal had the support of councillors, Cr Dave Hookway saying he was extremely concerned by a number of points raised by Justice Mathew Downs in his Rintoul decision.

"Justice Downs noted that Rintoul's price for the four sections of trail was more than $630,000 cheaper than its competitors, which is a lot of money for a small authority, even taking into account central government funding," he said.

"The true reasons for excluding Rintoul Group's tenders must be made clear and accountability sought."

He had been approached by a "growing number" of ratepayers regarding the council's decision-making, although much of that disquiet related to issues arising during the previous council term.

He believed that unease over the council's performance had improved little since the Serious Fraud Office investigation in 2014, however.

At the time SFO director Julie Read concluded: "The investigation found evidence that both council members and employees apparently failed to comply with internal systems and controls designed to ensure that proper processes were followed in the approval of council projects and the expenditure of public money."

Cr Hookway added: "We must show that we can effectively resolve the issues facing us, putting the interests of the community and ratepayers first ... We must approach these matters in a transparent manner, so that we can start to rebuild community trust in local democracy.

"I am aware of calls for a commissioner to be brought in, but I do not believe that to be the best course of action. I have confidence in the mayor and my fellow councillors that we are able to take charge and sort out this mess."