The Kaipara District Council has decided not to take legal action against consultants who managed the controversial $63 million Mangawhai sewerage scheme.

Beca Carter Hollings and Ferner managed the project that divided the community in Kaipara and prompted Auditor-General Lyn Provost to apologise for poor work done by the Audit Office when scrutinising the council books.

John Robertson, chairman of commissioners at the council, said the cost of pursuing a claim against Beca Carter with a limited chance of success was not a productive use of ratepayers' funds.

He said the decision not to take legal action was also made because of the Limitation Act issues, and significant costs and risks that would be associated with initiating a dispute resolution process.


Mr Robertson said the council had received and considered legal advice before making its decision at a meeting on February 24, 2015.

The Mangawhai Ratepayers and Resident's Association chairman said the council's decision was not surprising.

"John Robertson is part of the other side which is dedicated to protecting the vested interest of government's friends that are the big multinationals and banks," association chairman Bruce Rogan said.

The council has so far filed legal proceedings against former chief executive Jack McKerchar and the Auditor General over the scheme that ended up costing ratepayers about $57 million.

In August, commissioners running the council voted to pursue Mr McKerchar through the courts for his handling of the "botched" system that was initially estimated to cost $10.8 million.

Papers were filed about a week before Christmas last year against Mr McKerchar in the Employment Relations' Authority and against Auditor General Lyn Provost in the High Court.

The Kaipara District Council (Validation of Rates and Other Matters) Bill which was passed in December 2013 legalised council bungles which contributed to the debt blowout and led the Government to appoint commissioners in 2012 to replace the council.