Council handshakes probe

Local Government Minister Rodney Hide. Photo / Mark Mitchell

The Auditor-General has been called in to investigate lucrative golden handshakes being awarded to the chief executives of seven Auckland councils which are expected to cost ratepayers millions of dollars.

The Herald on Sunday has been told council bosses from Rodney to Franklin will receive redundancy packages with a combined cost of about $2.5 million.

Local Government Minister Rodney Hide said concerns raised about transparency of the redundancy packages by Labour's Auckland issues spokesman Phil Twyford led to the investigation.

"There is a big sensitivity about golden handshakes," said Hide.

"I don't have this information. It is held by the councils. The decision around redundancies is their responsibility.

"Because of the concerns raised by Labour's Phil Twyford I have asked the Auditor-General to have a look."

Twyford said he had been asking for details of the redundancy packages for months.

He said: "I've repeatedly asked Rodney Hide to front up and to reveal how much these golden handshakes have cost.

"I made a number of comments earlier this year basically calling on Rodney Hide to say. The Government must know what the figures are."

Twyford had sent requests to all councils in Auckland under the Local Government Official Information and Meetings Act asking for the redundancy packages of executives.

Auckland City mayor John Banks has released the severance package of his chief executive David Rankin, and said there were no golden handshakes given to him by Auckland City Council. He called on other councils to do the same.

"Rankin will be paid an additional $30,000 because he has stayed on past his contractual arrangement. We didn't want him to leave halfway through the year.

"Whereas the CEO of Manukau City has received a huge exit package, which has been kept secret as we can clearly understand it would.

"Ask Len Brown to tell you how much some of the poorest people in New Zealand have had to pay the CEO in golden handshake and golden exit packages."

Banks said any money paid in packages wouldn't be recouped.

"It's too late. It's gone. The remuneration packages will be made public. Like I've just done with my CEO.

"Secrecy surrounding this speaks volumes about how Len Brown wastes ratepayer cash."

The Herald on Sunday revealed in June that Manukau chief executive Leigh Auton was in line for a massive payout. The council decided to keep details confidential. Auton said: "The figure I've heard being quoted is absolutely incorrect."