KEY POINTS:
A political reversal on a $9 million social housing project at Auckland City has been upheld by the Office of the Auditor-General, which nonetheless found faults with the process.
Last December, the new ruling bloc of Mayor John Banks and Citizens & Ratepayers cut to $2.5 million a $9 million project to build 100 affordable houses to help modest income earners.
The scheme, through the New Zealand Housing Foundation, was eventually pegged back in June to 30 houses at a cost to the council of $3.8 million.
City Vision councillor Cathy Casey complained to the Auditor-General about the reversal, which occurred after officers found a legal loophole to withdraw from the project. The Auditor-General said the council acted in accordance with the decision-making requirements in the Local Government Act and was not required to consult ratepayers on the decision.
But Bruce Robertson, the local government Assistant Auditor-General, said the decision-making process would have been strengthened if councillors had been made aware of community views.
The report also said that some people were left with the impression that important decisions were being made without proper process.
Dr Casey plans to put a notice of motion to today's council meeting noting the criticisms and seeking a report on how decision-making can be improved.
