Council sale of Powerco shares approved by Auditor-General

11.30am

The sale of Powerco took a new turn today when the Auditor-General's office said it had investigated the sale of the New Plymouth District Council's holding and given the council a qualified okay.

The Auditor-General's office began the investigation following requests from three ratepayers and looked at the issue as part of its annual audit of the council in the June year.

In a letter released today, Assistant Auditor-General Bruce Robertson found the April 23 announcement of a possible merger between NGC Ltd and Powerco meant the council needed to act promptly in order to protect the value of its investment.

The council recognised the significance of the decision to the district and obtained extensive legal and financial advice throughout its decision-making process. Advice from PricewaterhouseCooper said the value difference between different options could vary by between $25m and $74m.

The council complied with the Local Government Act 2002 when it decided on April 26 to initiate a process to sell its shareholding in Powerco. The Act did not require the council use a special consultative procedure, Mr Robertson said.

The council was aware of its obligations to have regard to the views of the community and took account of its understanding of those views in the sale process, he said.

- NZPA