Gifts-for-contracts allegations mount

Auckland City councillors have asked chief executive David Rankin to take charge of a growing list of allegations about the awarding of footpath contracts.

The council has started two new investigations in the past two days - one relating to a wine gift and the second into the 2001 footpath tender process.

The council has already acknowledged that a member of the tender evaluation panel accepted a Christmas ham from the successful tenderer for two footpath contracts with a combined value of nearly $20 million.

The council is also investigating claims that a council officer was at the 2007 rugby sevens in Wellington with the father-and-son owners of the successful tenderer, John Fillmore Contractors.

Transport general manager Don Munro has said he had spoken to the officer and "suspected" he was a guest of a Fletcher subsidiary. Inquiries are continuing.

John Fillmore said he knew of the officer's presence at the sevens, but did not pay any of his costs.

The Herald understands that one of four members of the evaluation panel received two bottles of wine in a presentation pack at Christmas from one of the unsuccessful tenderers contesting the footpath contracts. The evaluation process was in progress at the time.

The panel member had signed a form saying he would advise the procurement management of any future "actual or impending allegation or perception by others of any conflict of interest".

It is understood the council is taking the process of awarding footpath contracts in 2001 seriously because of the financial implications for ratepayers.

The transport committee yesterday deferred the awarding of the new, two-year footpath contracts while the investigations continue.

The committee asked Mr Rankin to take charge and present a report on the issue.

The committee received a briefing from the head of the tender evaluation panel, Neill Forgie, and a report of an audit of the 10 transport contracts by accountants Christmas Gouwland.

Mr Forgie said the tender evaluation process had been fair, equitable and professional. No one person could unduly influence the outcome, he said.

He said Fillmore was the council's highest-scoring contractor for customer service.

"Please do not bag him for offering a ham. It is typical of John Fillmore and his kindness for having so much work with Auckland City."

A report by Christmas Gouwland said it had examined all the declarations of conflict of interest by members of the evaluation panel and found only the one instance, which had been the subject of recent media interest.

"In our opinion if there was a conflict of interest at an individual Tet [tender evaluation team] level it would have been difficult to influence the overall decision of the Tet reached in committee," the report said.

The accounting firm recommended tenderers be asked to declare any conflicts of interest covering relationships with council staff before or during the tender process.

Transport committee chairman Ken Baguley said: "There has been a lot of smoke, but there hasn't been a major fire."

UNDER SCRUTINY
* Ham gift to member of footpath evaluation panel.
* Wine gift to member of footpath evaluation panel.
* Trip to rugby sevens in Wellington by council officer.
* Probe into implications of 2001 footpath contract process.