Christmas ham halts $20m council contract

Mayor John Banks. Photo / Glenn Jeffrey

Auckland City has put a hold on the awarding of two footpath contracts with a combined value of nearly $20 million because a member of the tender evaluation panel accepted a ham at a Christmas party hosted by the successful tenderer.

The council's transport committee was to have approved a recommendation from officers today to award footpath renewal contracts worth $19.8 million in the southern and eastern areas to John Fillmore Contractors.

Mayor John Banks said yesterday that he had called a halt to any decision being made until the panel member, footpath contracts manager Bernie Sheary, had been given an opportunity to explain the situation.

Mr Sheary was on holiday and would return to work next week.

Fillmore has been the main contractor for city footpath renewals, winning contracts worth $105 million over the past five years.

Mr Banks said that at this stage, Mr Sheary's act fell into the category of poor judgment.

Contacted yesterday, Mr Sheary directed inquiries to the council.

Mr Banks said Mr Sheary had been removed from the four-person evaluation panel after officers discovered he had been to the John Fillmore Christmas party at Hammerheads Restaurant on Tamaki Drive in December, and had been given a ham.

Mr Sheary had signed a conflict-of-interest form in October, he said.

The Herald has learned Mr Sheary worked for up to a year at John Fillmore Contractors managing footpath contracts, leaving in about May 2007.

He also attended a two- to three-hour rally-driving experience at Maramarua last August hosted by Fillmore.

The council's transport general manager, Don Munro, said that when Mr Sheary was interviewed about joining the evaluation panel and signed the conflict-of-interest form, he declared his employment with John Fillmore Contractors.

But Mr Munro was not aware of him declaring the rally day.

Council chief executive David Rankin said Mr Sheary made an error of judgment by going to the Christmas party and accepting a ham because it gave rise to the perception of something improper.

John Fillmore said he did not think the combination of factors involving Mr Sheary and his company should have ruled out the council officer from sitting on the evaluation panel.

CONFLICT OF INTEREST
* 2006-2007: Bernie Sheary employed by John Fillmore Contractors to look after footpath contracts.
* 2008: Sheary starts working for the Auckland City Council.
* August 2008: Sheary attends a rally-driving experience put on by John Fillmore Contractors.
* October 2008: Sheary signs conflict-of-interest form to join the tender evaluation panel.
* December 2008: Sheary attends John Fillmore Contractors' Christmas party and accepts a ham.
* Late January/early February: Council officers hear about the ham and remove Sheary from the evaluation panel.
* March 2009: Panel recommends footpath-renewal tenders for John Fillmore Contractors.
* March 11: Mayor John Banks halts tender decision.