Editorial: Judgment hints that FNDC processes need examining

Northland's Pou Herenga Tai / Twin Coast Cycle Trail is giving great pleasure to riders, but some sections have also been at the centre of legal wrangles.

The Far North District Council has signalled it is prepared to organise an independent review of its procurement processes after a High Court judgment found it had made a mistake.

The mistake, made in July 2016, was to exclude Kaikohe firm Rintoul Group from tenders to build four cycle track sections that were part of Northland's Pou Herenga Tai/Twin Coast Cycle Trail.

Rintoul Group's tenders were excluded, as opposed to being rejected in favour of other tenders.

Indeed, if the Rintoul Group's tenders had merely been passed over, there probably would not have been a problem.

However, the FNDC excluded Rintoul Group's tenders, and did not consider them, after concluding that information the company supplied as part of the tender process did not stack up.

Rintoul Group had built cycle trail sections before, and said so in its tender, citing a section of track built on time and to budget.

The FNDC disputed this, and decided to exclude all four of the group's tenders.

Justice Michael Downs found there was no legal right for the FNDC to exclude the company. He also noted that the Rintoul Group's claims re the past project were disputed but were not false.

The High Court decision highlights a few other interesting issues.

Rintoul Group's tenders were more than $600,000 cheaper than competitors.

That's a big saving for ratepayers, from a firm known within the FNDC to "tender low".
But $600,000 lower?

The other factor that needs looking into is what constitutes a conflict of interest.

The High Court judgment reveals that the FNDC had earlier deemed it was okay for construction manager Andrew Young to act as a referee for Rintoul Group.

Generally, people agree to be referees to champion a person or a company.

Mr Young was part of the FNDC's tender evaluation team for the projects Rintoul Group was vying for.

If the FNDC thought this was okay, then an independent review is likely to expose more FNDC processes than the ones found to be at fault within the Rintoul Group decision.

■ Footnote: Mr Young resigned in June 2016, citing frustration at the level of bureaucracy within the FNDC.