Auditor-General asked to check city contracts

David Rankin. Photo / Richard Robinson

The Auditor-General has been asked to investigate footpath contracts at Auckland City Council going back to 2005.

The council's chief executive, David Rankin, said yesterday that he was satisfied there was no evidence of wrongdoing by any party or individual.

But "it is a matter of public confidence that we now open our doors to the Auditor-General, who can independently review the matter".

His decision followed an ultimatum from Mayor John Banks, who on Wednesday told Mr Rankin to get to the bottom of new revelations about the footpath contracts or he would call in the Auditor-General, Kevin Brady.

Mr Banks wanted a timeline of events on his desk yesterday morning and credible answers to all the issues raised by the Herald by midnight tonight.

At the heart of the issue is whether John Fillmore Contractors was overpaid for footpath renewal work.

The city council concluded in January 2007 there had been no overpayment.

But questions have arisen over the process, and documents are missing from council files.

Last week, the Herald obtained council documents - not on the city files - that questioned John Fillmore Contractors' measurement method and the payment process.

Mr Rankin said he had had an initial briefing yesterday on the documents, and the audit team view was that they did not alter the original assessment and conclusions.

Asked if calling in the Auditor-General was an admission that neither he nor council staff were capable of investigating the matter, Mr Rankin said: "No. It's me saying I want the public to have full confidence in the way the council administers contracts and the way it conducts investigations."

Mr Banks said he was pleased Mr Rankin had called in the Auditor-General to deal with the matter "once and for all".

Asked if he had lost confidence in the chief executive and staff to investigate the matter, the mayor said Mr Rankin had given him a lot of confidence by making a decision that was inevitable and sound and sensible under the circumstances.

Mr Fillmore last night welcomed an independent investigation by the Auditor-General.

"As far as I'm concerned we have got nothing to hide," he said.

A spokeswoman for the Office of the Auditor-General said it had still to receive a formal request from Auckland City.

Once that happened, Mr Brady would decide whether to proceed with an investigation, "but the chances are we will".