Comment permalink

A report on beleaguered Dunedin City Council-owned companies Delta and Aurora has called for a major shake-up to the way the companies are run.

The report by consultant Deloitte into accusations Aurora has dangerously mismanaged the power network in Dunedin and Central Otago was released after a non-public debate at the council this afternoon.

 Dunedin City Holdings Ltd also announced yesterday that Aurora and Delta chairman Dr Ian Parton and fellow board member Stuart McLaughclan had stood down as DCHL and the two companies looked to implement Deloitte's recommendations.

Newly appointed director Steve Thompson has been appointed chairman and DCHL director Brian Wood had been appointed to the board to assist the transition.

The report backed many of the concerns raised by whistleblower Richard Healey and called for the two companies to have separate boards and chief executives.

``There has been an under investment in asset inspections/condition monitoring, planned maintenance and asset replacement over the last 25 to 30 years,'' the report said.

The report did not include a detailed investigation of health and safety issues, but said risk had been increased by a lack of investment.

``It is inevitable that this increases the level of risk inherent in the network that could have implications for staff and/or members of the public,'' it said.

It also said found that the board and management of Aurora needed to adopt a more transparent approach with staff and public in relation to health and safety.

It said Aurora and Delta had been guilty of placing too much emphasis on providing dividends to the council and keeping debt levels under control as opposed to investing in the network.

DCHL chairman Graham Crombie said both the boards of DCHL and Aurora accepted the findings of the report ``in full'' and had already moved to address the issues raised.

It was committed to the separation of the governance teams of Aurora and Delta.