Property purchases that could end up costing Dunedin City
Council-owned Delta more than $6 million have been criticised
by the Office of the Auditor-General.
The Auditor-General's report into the property purchases at
Jacks Point and Luggate, published this afternoon, cleared
the company of any "impropriety or poorly managed conflicts
However, Delta was found to have breached legislation, failed
to adequately consider risks associated with the deals, or
communicate adequately with its shareholder, Dunedin City
The holdings company also had to accept some of the blame for
failing to provide adequate oversight or scrutiny, while the
council had failed to provide governance advice on acceptable
levels of risk, Auditor-General Lyn Provost concluded.
Delta spent $14.17 million buying the sections at both
properties in 2008 and 2009, but expected to lose at least
$6.4 million once the last of the sections were sold.