Council says no to legal action

 

In a recent public statement, Kaipara District Council has said it will not take legal action against Beca Carter Hollings & Ferner Limited (BCHF) in relation to its involvement in the Mangawhai Community Wastewater Scheme (MCWWS).

This concludes one aspect of the accountability work stream which the Council has been undertaking since the release of the Auditor-General's report on her inquiry into the MCWWS.

At their meeting on February 24 Commissioners determined not to pursue a claim against BCHF for its actions or those by members of its consortium.

The decision was made because of the Limitation Act issues, limited chance of success and significant costs and risks that would be associated with initiating a dispute resolution process.

The Council received and considered legal advice before making its decision.

Chair of Commissioners, John Robertson, stated that the Council had given the matter extensive consideration.

"Having considered the matter, including taking technical and legal advice, the Commissioners decided that the cost of pursuing a claim with a limited chance of success was not a productive use of ratepayer funds and that it was reasonable to call time on this workstream."

Council also stated it would make no further comment on the matter.

In response, the New Zealand Party says the commissioners and council have made a faulty decision not to assume legal action against consultants managing the $63 million Mangawhai sewerage scheme blowout.

“This was a disgraceful episode in non-accountability, with elements of appalling misuse of ratepayer funds and dismal oversight by the audit office in examining the council books,” says New Zealand First Leader and Northland by-election candidate Winston Peters.

“Saying that there was ‘unlimited chance of success and not a productive use of ratepayers funds’ is a total cop out.”

Mr Peters says that as a former National MP and Chairman of the Commission, John Robertson should understand his duty to have at least filed a holding action to get to the truth.

“Pleading the Limitation Act is also a pathetic excuse. He himself is in control of statute of limitation issues in this case. Once more Kaipara District ratepayers are being sold down the drain by a national administration that doesn’t want its shortcomings exposed.”