Election count bungle costs firm $900,000

NZ Post subsidiary Datamail lost almost $1 million over its bungling of local election results in October 2004, it was revealed today.

The company that ran elections for most of New Zealand's local authorities, Electionz.com, blamed Datamail's software for lengthy delays before results could be declared.

Datamail was hired as a subcontractor to scan votes and this worked well but votes were missing when computer programs were run.

NZ Post chief executive John Allen today told members of Parliament's commerce select committee that it had cost Datamail about $900,000 to recover lost election data.

This included costs of settlement, overtime, contractors and equipment rental associated with the recovery.

But Mr Allen said despite the problems it appeared to have done little long-term damage to Datamail's reputation or operations.

The company had not lost any contracts as a result of the bungle and in fact had even won more contracts from Electionz.com.

Quarterly customer satisfaction surveys had shown a slight decrease in satisfaction in the immediate aftermath of the local elections, but it had since rebounded to its highest ever level.

- NZPA