The Kaipara District Council (Validation of Rates and Other Matters) Bill was lined up for a third reading and vote in Parliament last night.
The bill could validate controversial rates and Kaipara governance errors revealed on Tuesday, when Auditor-General Lyn Provost presented a report on her office's 20-month inquiry into cost blowouts for the Mangawhai sewerage scheme.
It found many faults with the former council and Mrs Provost apologised for Audit Office mistakes.
Meanwhile, the government-appointed commissioners who have been governing Kaipara since they replaced the council last year may try to recover funds from those responsible for the debt. The chairman of the four commissioners, John Robertson, said yesterday legal advice would be sought to see whether Audit New Zealand could be sued for its council auditing between 2006-09, which the report described as "substandard" and "inadequate".
Others who shared responsibility for "this costly period of Kaipara's history" and might be sued included elected council members, former chief executive Jack McKerchar, consultants, advisers and project managers.
Mr Robertson said the commissioners had been surprised at the extent of the errors and poor judgment relating to the Mangawhai sewerage scheme.
The commissioners, on behalf of the council, apologised unreservedly to the people of the district for the multitude and extent of failures of previous councils outlined in the report.
While pleased with the report, Mr Robertson said its lack of recommendations had placed another burden on council financial resources.
"We've been left to decide whether further action can and should be taken."