Fillmore awarded $20m jobs

Auckland City Council has awarded two new footpath contracts worth nearly $20 million to John Fillmore Contractors, following investigations that showed no impropriety in the tendering process.

Council chief executive David Rankin told the Herald that after extensive investigations into the behaviour of staff, the public could have confidence in the tender evaluation process, management and monitoring of the footpath contracts.

The investigation came after personal links emerged between contract services manager Euan Ross, responsible for overseeing the footpath contracts, and the footpath contractor.

Mr Rankin said he was satisfied that Mr Ross had acted appropriately at all times and in accordance with the council's policies and rules in relation to the management of footpath contracts.

The rules include a guiding principle around "perceived conflicts of interest".

He was also satisfied with the behaviour of another member of the footpath team, Bernie Sheary, with the exception of Mr Sheary accepting the gift of a Christmas ham when he was on the tender evaluation panel.

That was an error of judgment, Mr Rankin said.

The investigations found there were "limited" occasions when Mr Ross and Mr Fillmore attended the odd rugby match and social event together.

Mr Ross, Mr Sheary and three other staff have also been given the all-clear for attending a rally day hosted by John Fillmore Contractors in August last year.

The council's gift and inducements policy has a $150 limit on gifts, but transport general manager Don Munro referred to another clause that stated managers and senior staff can attend networking events where there is a legitimate business reason.

Based on these assurances, the council last night voted to award the new contracts to John Fillmore Contractors and took steps to tighten up conflict-of-interest rules during the tender evaluation process.

The contracts are for a period of two years with a wider renewal for three more years.

Mr Banks said the issue went to the heart of openness and accountability in local government and that this particular contact had been a Trojan horse for much more accountability about how staff and councillors conducted business with third-party contractors.

He said there was some suggestion of errors of judgment in terms of relationships and his advice was people had to be very, very careful about their dealings with contractors.