Banks: I'll get money back on footpaths

Mayor John Banks has promised ratepayers the $140,000 in double payments will be retrieved. Photo / Glenn Jeffrey

Auckland City Mayor John Banks last night promised ratepayers he would get back their $140,000 in double payments on two footpath contracts.

He was responding to the report of an inquiry into the issue that recommended contract engineer Euan Ross chase John Fillmore Contractors for the money.

Engineer Warren Warfield, who led the inquiry, said ratepayers were owed $140,000 after city transport staff made double payments for some footpath renewal work for five years.

He said officers took the attitude it was a relatively minor matter and were aware of several other items of work John Fillmore Contractors had done and not claimed for.

"I find that the staff made a reasonable commercial decision that any rebate due from JFC would be offset by potential counterclaims for extras," Mr Warfield said.

This "swings and roundabouts" argument did not wash with Mr Banks, who said it was not how well-paid officials should manage contracts worth tens of millions of dollars.

The mayor said John Fillmore should pay back the $140,000 and present the council with a fair and reasonable claim for any unpaid work.

"Then there is no argument because then, and only then, the process becomes publicly transparent."

Mr Banks could be buying a fight with council executives who had prepared a press statement in the name of transport chairman Ken Baguley saying "the council will not be pursuing a rebate from the contractors".

It is understood council spin doctors wrote the statement before Mr Baguley had read the Warfield report.

The position of council executives will not bother Mr Banks, who is acutely sensitive about any issue that might damage his bid to be the first mayor of the Super City. A public scrap with chief executive David Rankin could even help the mayor.

Mr Banks said he would also take up a recommendation from Mr Warfield to hire an independent quantity surveyor to confirm the length of footpath paid for twice where footpath and kerb-and-channel work overlaps.

A spreadsheet prepared by contract manager Bernie Sheary said the overlap occurred to 0.13 per cent of renewed footpaths between 2004 and 2009. This was a total of 14,927m.

It was not until June 15 this year - two weeks before the five-year contracts were due to expire - that the council agreed on a rebate with John Fillmore Contractors.

Mr Warfield said he understood the company had since withdrawn the offer of a rebate.