Delta land purchases to be investigated

Delta's decision to buy land at Jacks Point, in Queenstown, and Luggate is to be investigated by the Office of the Auditor-General, it has been confirmed.

A statement from the Auditor-General, released this afternoon, confirmed an inquiry would be conducted, following a request by Dunedin Mayor Dave Cull.

It would examine Delta's decision to buy land, including consideration of risks and compliance with legislation including the Local Government Act 2002 and Companies Act 1993.

The probe would also scrutinise the identification and management of any conflicts of interest, consultation with, or the involvement of, the Dunedin City Council, and any other matters considered desirable to report on, the statement said.

Delta, a council-controlled organisation (CCO) made the land purchases in 2008 and 2009, but last month confirmed a $7.5 million write-down in the value of the investments.

And investigate SH 88 too

Frasighted, I agree with you. I still find it extraordinary that the DCC could actually write reports that effectively stated that State Highway 88 could not be re-aligned for the great benefit of the people of Dunedin unless a stadium was built nearby at the same time. Such reports are still there in the DCC archives for anyone who wants to look.

Four investigations

Sorry farsighted, make that four investigations, where did the missing million $ from the sale of Carisbrook go? We still don't know.

Years ago

It is three and four years since these transactions took place. Cr Vandervis, after prolonged endeavours to get the full story behind the impairments of these purchases, finally requested the OAG to assist. Then, and only then, Mayor Dave Cull deems it appropriate to initiate an OAG inquiry. [Abridged]

Delta investigation

About time. Hopefully heads will roll.

At last

I guess the auditors might stick around once they are here. There is plenty of work for them.

Investigation

One can only hope that the Office of the Auditor General will be diligent and aggressive in getting to the bottom of this issue. But it is a pity that this action was not taken a lot earlier. Who knows? Delta may have been able to avoid laying off workers recently if its management and directors had been concentrating on core activities instead of believing they were running a private development company. [Abridged]

About time

That's one investigation underway. We await the next two: one into stadium transactions and the other into SH88 transactions. 

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