The Auditor-general's office has written to former Stop the Stadium president Bev Butler, ruling out a full investigation of allegations Ms Butler made about DCHL and two of its subsidiary companies, Delta Utility Services Ltd and Newtons Coachways (1993) Ltd.
An OAG spokesman last month confirmed an initial assessment of Ms Butler's claims was under way, but - in a letter received by Ms Butler on Tuesday - OAG senior solicitor Jonathan Keate dismissed her claims.
A copy of the letter was obtained by the Otago Daily Times yesterday, but Ms Butler said when contacted she was already preparing a response seeking further clarification.
"They appear to have accepted their view that everything is in order. This is clearly not the case," she said.
DCHL chief executive Bevan Dodds was reluctant to comment yesterday without first discussing the letter's contents with the rest of the board next week.
"They haven't had a chance to see it yet."
However, he confirmed no further action by the company was required.
"It's as I expected."
Ms Butler said she had found a $165,000 "error" within DCHL's annual report, as well as possible conflicts of interest within DCHL, which she declined to discuss in detail last month and again yesterday.
She also questioned a $7.1 million loan from Delta to Newtons to fund property purchases by Newtons at Jacks Point, in Queenstown, and in Luggate, which she said breached Delta's statement of intent.
Her claims were dismissed at the time by Mr Dodds, DCHL chairman Paul Hudson and Delta chairman Ray Polson.
In the letter, Mr Keate said the financial "error" within DCHL's reports related to a figure initially included as an estimate and later corrected.
"We do not regard this matter as significant."
Claims of a conflict of interest involving a DCHL director also involved "speculation", with no evidence to justify an investigation, and loans from Delta to Newtons had already been explained by Mr Polson in the ODT, Mr Keate wrote.
A statement issued by the OAG yesterday afternoon confirmed there would be no broad inquiry of Ms Butler's allegations or a second complaint, received from an unnamed person at the same time, seeking a full investigation of Forsyth Barr Stadium matters.
However, as the council's auditor, the OAG would continue to have an "ongoing interest" in funding and governance issues, the statement said.
"We will consider these matters as part of our annual audits of the council and group, including during the audit of the council's next long-term plan."
