Move to claw back footpath overpayments

The Auckland City Council has started proceedings to recover $140,000 in double payments on two footpath contracts.

An independent quantity surveyor will be appointed to verify the accuracy of overpayments to John Fillmore Contractors and counter-claims for unpaid work by the contractor.

An inquiry by engineer Waren Warfield said ratepayers were owed $140,000 after city transport staff made double payments for some footpath renewal work for five years.

Council chief executive David Rankin and transport general manager Don Munro did not want to pursue a rebate from John Fillmore Contractors on the understanding that the contractor would make counter-claims for extras. These have not been quantified.

This "swings and roundabouts" argument did not wash with Mr Banks, who said Mr Fillmore should pay back the $140,000 and present the council with a fair and reasonable claim for any unpaid work.

Mr Fillmore, whose company was paid $104 million for footpath work between 2004 and 2009, could not be reached for comment. He believed the extent of double payments was "far less" than estimated by the council, according to the inquiry report.

Last night, Mr Rankin said Mr Fillmore was happy for an independent quantity surveyor to assess his counter claims and resolve the accuracy of the $140,000 figure. The counter-claims would be made public, he said.

Mr Rankin said he did not condone the practice of double payments. He agreed with the inquiry report that officers should have corrected the practice of paying twice for footpath and kerb-and-channel work that overlaps when it came up several years ago.

"I certainly don't think there was any issue of ethical behaviour [by officers]. In terms of professional standards I can only agree with what Warfield has stated, which was what should have happened in a professional sense is that the contract was formally amended to deal with this aspect.

"But at the end of the day no damage was done to the ratepayers' interest because commercial judgments were made," Mr Rankin said.

The Warfield report will be given to the Auditor-General, who is holding a wider inquiry into the management of the council's footpath contracts.

This follows a series of revelations by the Herald, including an allegation that John Fillmore Contractors was overpaid $662,284 on a different matter to do with footpath measurements.

The council concluded in January 2007 there had been no overpayment, but crucial documents about the allegation are missing from council files.