Metrowater boss resigns

Metrowater chief executive Geoff Mabbett has quit after nearly four years running Auckland City's water business but says his departure has nothing to do with a council raid on its balance sheet.

Councillors are looking at taking $50 million by way of a "charitable payment" from the 100 per cent council-owned business but have not shared their plans with ratepayers, citing commercial sensitivity.

Mr Mabbett, who has a new job as chief executive of Sustainability Victoria, said the council may be able to take $50 million over time but there was not $50 million right now.

The raid is focused on Metrowater's retained earnings of $80 million over eight years from profits. Mr Mabbett said $50 million of retained earnings had been spent on capital improvements and $4.7 million reducing debt, leaving just $9 million cash for working capital. The other $17 million had been returned to the council in earlier charitable payments for stormwater improvements.