Troubled taxi co-op calls in auditors

By CATHY ARONSON transport reporter

Auditors are investigating New Zealand's largest taxi firm after the Auckland Co-Operative Taxi Society committee was forced to resign last week.

The auditors are assessing the co-op's financial position and conditions of its current contracts.

Last night it lost a major contract to transport Air New Zealand flight crew, worth about $2 million a year, to a former committee member who set up a company last month.

The auditors were called in by the new interim committee, elected last Tuesday when four members resigned.

Their resignations followed those of co-op chairman Robert van Heiningen and his deputy, Brian Lough, in March.

Nearly half of the 500 driver-owners voted for no confidence in the pair, saying they made controversial financial and management decisions without explanation.

Drivers' spokesman Bill Woodman said that without consulting members the committee had registered 18 companies, replaced co-op taxi chits with plain taxi chits which reduced passenger numbers and had increased fees and fines for misdemeanours.

He said that on Monday the auditors began investigating financial management and providing an overview of current contracts.

Members had been unaware that the co-op was about to lose its Air NZ contract, he said.

The new committee also urgently renegotiated about five other contracts in the past week.

Mark Champion of Air NZ confirmed it had made a 90-day deal with Auckland Maxi Taxi.

He said Co-Op Taxi had increased its price and could not renegotiate an acceptable price.

The negotiations were concluded last month and could not be salvaged before the co-op contract expired at midnight last night.

A former committee member who was in charge of the Air NZ contract last year, David Newson, is the new supplier. He sold his shares in the co-op a month ago and registered his new company, Auckland Maxi Taxi, on April 9.

Mr van Heiningen said last night that he welcomed the audit.

"It will put to rest any doubts about myself and the committee."

He said members were consulted on major issues but not over minor financial transactions.

Auckland Co-Op Taxi has 700 vehicles and 1000 owner-drivers.

A new committee will be elected at the annual meeting in July.