Raggamuffin promoter Andrew McManus owes Rotorua ratepayers $132,000 after moving his music festival to Auckland one year before his contract expired with the district council.
Interim Destination Rotorua Marketing/Events & Venues Business Unit chief executive Mark Rawson said the Rotorua District Council recently agreed to consider releasing Andrew McManus Entertainmentfrom the final year of a five-year contract to stage Raggamuffin in Rotorua, subject to certain outstanding obligations being fulfilled.
"Those obligations include a payment of $132,000 to the council which currently remains outstanding."
Mr Rawson said the council had been in discussions with Mr McManus about the unpaid amount and was now implementing a process to recover that debt.
"As the council doesn't want to prejudice the process that's under way to recover the outstanding amount, we aren't able to make further comment at this stage," he said.
"We're delighted to be bringing Raggamuffin to Auckland and we hope our fans will continue to support the event and that we will be encouraging new fans to come along," he said.
Mr McManus said he took the festival away from Rotorua due to a lack of numbers and declining profits.
The festival has been held in Rotorua since its inception in 2008 and has injected millions of dollars into the local economy.
