NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

Fran O'Sullivan: Review of Len Brown under watch

Fran O'Sullivan
By Fran O'Sullivan
Head of Business·NZ Herald·
10 Dec, 2013 04:30 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Auckland Mayor Len Brown. Photo / Greg Bowker

Auckland Mayor Len Brown. Photo / Greg Bowker

Fran O'Sullivan
Opinion by Fran O'Sullivan
Head of Business, NZME
Learn more

Auditor-General keeps check on scrutiny of mayor's possible use of council resources during two-year affair.

Auditor-General Lyn Provost is keeping a watching brief on Auckland Council chief executive Doug McKay's review of Mayor Len Brown's possible use of council resources during his two-year affair with Bevan Chuang.

Impeccable sources have confirmed to me that Provost has been in frequent close contact with McKay since he appointed top accounting firm Ernst & Young to undertake the review on his behalf.

It has clearly been a testing brief for McKay to effectively investigate his own boss. Insiders have correctly described the process as involving a good deal of "negotiation" between the mayor's office and McKay's executive suite to gain access to the information necessary for Ernst & Young to do a credible job.

McKay has been receiving advice from Crown Solicitor Simon Moore, whose warrant covers the greater Auckland area. Brown has his own legal adviser.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

For two men who have worked closely together during Brown's first term as Mayor of Auckland to bring the new governance structure for New Zealand's largest city into operation, this has clearly posed enormous personal strains.

Difficult also for Provost, whose team reported in December 2012 - in largely positive fashion - on how the transition to the new Super City had been carried out. Although some tensions were identified by the Auditor-General, they were largely seen as part of the bedding-down process.

McKay will not be around to deal with the aftermath of the Ernst & Young report as he steps down as Auckland Council chief executive at the end of the month.

But it is a sad note for him to go out on after the enormous workload he has shouldered over the past three years following the merger of seven Auckland local authorities and organisations into the Auckland Council.

The Ernst & Young (now known as EY) report went to Brown's office at the weekend for factual accuracy checks under the usual "natural justice" provisions involving such inquiries.

It is not yet clear whether Provost's watching brief will end with the EY report's publication, which sources suggest is expected this week but might yet face another delay.

Discover more

Opinion

Editorial: Court's refusal to see Slater's blog as news out of touch

02 Dec 04:30 PM
New Zealand|politics

Rates to rise to pay for living wage

02 Dec 04:30 PM
New Zealand

Principles matter, even in cyberspace

02 Dec 05:55 PM
New Zealand|politics

Hide's fans keen for a comeback

04 Dec 04:30 PM

The report is already three weeks past deadline.

But the Auditor-General does need to take a close look at whether - given the controversy that will naturally attach itself to the results of the EY review whether it is positive or negative for Brown - it is appropriate in any future such cases involving major political figures in local government for them to effectively be investigated by council staffers and their appointed advisers, rather than by Provost's own team.

Advertisement
Advertise with NZME.

The Auditor-General has sweeping powers and in my view this is exactly the set of circumstances where Provost should have stepped in to short-circuit the "negotiations" process.

The EY review has been directed to examine whether Chuang received improper preferential treatment as an employee, contractor or adviser within the broader Auckland Council group.

And, if there was any use of council resources within the office of the mayor, in respect of the mayor's relationship with Chuang, that contravened council policies (for example payments and procurement).

There are the usual broad terms of reference opening the door for EY to probe any other other issues that "the reviewers or chief executive consider relate to, or arise out of, the above matters".

But when boiled down the fundamental issue is whether Brown has complied with the Auckland Council's own code of conduct. How he managed the obvious conflict of interest posed by his affair with Chuang, who was a member of the ethnic advisory panel and for whom he wrote a reference to help her secure a job with the Auckland Art Gallery. There is also the alleged use of freebies from hotels to hold his trysts with his former mistress.

It is fundamentally as simply as that.

Advertisement
Advertise with NZME.

There has been a great deal of speculation - some of it obviously unfounded - over a Hong Kong Government-funded trip that Brown took in January.

The Hong Kong trip should clearly have been disclosed by Brown and his office as it was an official visit. Bizarrely, it wasn't.

This has further damaged Brown as council policies require timely disclosure.

Brown's office provided me with a copy of his itinerary. It is abundantly clear that his trip was official in its nature.

It was a typical five-day visitor programme jam-packed with meetings organised by Hong Kong Government officials. Among items on the mayor's itinerary: meetings with Joseph Lai (Permanent Secretary for Transport and Housing), whom the mayor wished to talk with about latest developments in Hong Kong's transport system; Iris Tamm who is managing director of Hong Kong's Urban Renewal Authority; visits to the Legislative Council, the Hong Kong container terminal and airport authorities; talks with the director of planning; Andrew Wong (Permanent Secretary for Commerce and Economic Development); briefings by the solicitor-general on Hong Kong's rule of law; briefings on Hong Kong's position as an international finance centre; and a meeting with Julie Mu from the Independent Commission against Corruption on Hong Kong's anti-corruption policies.

Along the way there was a side trip to Shenzhen to visit Huawei.

Advertisement
Advertise with NZME.

As for Brown, in my view former minister Rodney Hide hit the nail on the head when he recently described him as a "busted flush". Hide was speaking with the authority of having been the central government politician who was in charge of the political orchestration leading up to the birth of the new Auckland Super City.

He also had the personal experience of having seen his own political capital and authority disappear when his brand as a perk-buster came under attack.

Brown has been sorely damaged by this affair, in my view fatally.

Save

    Share this article

Latest from Business

Media InsiderUpdated

From $1 to millions - Sinead Boucher sells 50% of Stuff Digital to Trade Me

02 Jun 11:10 PM
Premium
Retail

On the Up: How a family-owned Kiwi firm quietly conquered the cleaning market

02 Jun 11:00 PM
Energy

NZAS to ramp up production early as hydro storage improves

02 Jun 10:40 PM

Deposit scheme reduces risk, boosts trust – General Finance

sponsored
Advertisement
Advertise with NZME.

Latest from Business

From $1 to millions - Sinead Boucher sells 50% of Stuff Digital to Trade Me

From $1 to millions - Sinead Boucher sells 50% of Stuff Digital to Trade Me

02 Jun 11:10 PM

The 50% sale of Stuff Digital comes as Trade Me is in a tense battle with OneRoof.

Premium
On the Up: How a family-owned Kiwi firm quietly conquered the cleaning market

On the Up: How a family-owned Kiwi firm quietly conquered the cleaning market

02 Jun 11:00 PM
NZAS to ramp up production early as hydro storage improves

NZAS to ramp up production early as hydro storage improves

02 Jun 10:40 PM
Premium
Major healthcare provider eyes growth, as Government ups outsourcing

Major healthcare provider eyes growth, as Government ups outsourcing

02 Jun 09:00 PM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP