City council cleared of corruption

An investigation by the Auditor-General into Auckland City Council's management of its footpath contracts has found no "apparent corruption" or flaws.

But it says the council could have better addressed public concerns over the issue.

The council requested the inquiry after Herald inquiries revealed a member of a tender evaluation panel accepted a ham at a Christmas party hosted by successful tenderer John Fillmore Contractors.

Auditor-General Lyn Provost said the procedures for managing footpath work were reasonable and had been applied adequately.

"We are satisfied the council has protected the interests of ratepayers throughout its management of footpath contracts," she said.

"My staff found no fundamental flaws or gaps in the contract management process, no apparent evidence of corruption at any level, and no waste."

But the report said each of the concerns publicly raised had some basis of fact, and it cited areas in which the council could "tidy up its administrative processes".

In one instance, an individual accepting a gift did not compromise the 2009 contract tendering process.

"The matter was dealt with appropriately as a personal issue, and we're satisfied the council has the necessary controls and procedures to mitigate the potential for this type of situation to happen and to mitigate any effect if it does happen."

The report found the council's response to the allegations was reasonable but it could have communicated better with the public and news media.

Ms Provost said it was clear from the inquiry there were mixed views about the measurement of physical work completed and paid for under the footpaths contracts.

"In response to allegations that it paid too much for footpaths work in 2005-06, the council remeasured the work that had been claimed for payment by the contractor. The work was later measured again and showed that the original measurements were correct within acceptable tolerances.

"Overall, we are satisfied that the council had a reasonable basis for the measurements it used to make payments under the 2004-09 contracts."

But she said the council should keep under review the level of resources needed to confirm measures.

This had been a theme running through the public concerns.

Regarding the response to the allegations, the report said it was an extensive and reasonable response but the council was "encouraged" to reinforce the importance of appropriate standards of probity and conduct to reduce the likelihood of issues arising again.

Councillor Ken Baguley said the council was extremely pleased with the outcome.

"The report has acknowledged the complexity of managing an asset the size of Auckland's footpaths and recommended minor process improvements," he said.

"Outside of this, it concludes the council and its people are doing a good job."

The report made four process-related recommendations for minor changes and improvements, most of which had already been adopted.

FOOTPATH AUDIT

* Contract questioned after the Herald revealed a tender evaluation panel member accepted a Christmas ham gift from the successful bidder.
* Questions also asked about whether the contractor was overpaid for work done.
* Auditor-General clears the council of corruption, flaws and waste.
* The council is told it could "tidy up administrative processes".