A review of the Aurora/Delta power network by Deloitte is expected to start next week, but Dunedin City Holdings Ltd chairman Graham Crombie says it is unclear when any information will be released.
Mr Crombie confirmed Deloitte’s appointment yesterday and released the broad terms of reference in an emailed statement.
He said he expected an "interim update" from Deloitte at DCHL’s next board meeting on November 10. But as the review was expected to start next week, the auditor would only have days to provide that update.
"No information will be released at this stage, but there should be a clearer idea of how long the full review will take," Mr Crombie said.
"When the review is complete, Deloitte will present its findings to DCHL. DCHL will then report back to the Dunedin City Council."
Deloitte would interview representatives of Aurora and Delta’s board, the management team and "some other staff and former staff members" as part of the review, he said.
The DCC email that contained Mr Crombie’s statement also stated he would not be making any further comment at this stage.
The "broad terms of reference" for Deloitte’s review include:
● Understanding the Aurora Energy network safety concerns regarding the awareness and flow of information from a board and management perspective.
● Understanding the company’s plans to resolve the issue.
● Understanding the operation of the company’s whistleblowing processes.
● Understanding the emergency/contingency planning that is in place should a health and safety issue arise.
● Understanding if there are other potential health and safety issues that are considered high-risk.
However, former Aurora Energy employee Richard Healey said, when contacted last night, he had concerns about the review’s terms of reference and Deloitte’s appointment.
He also feared any review would be an "exercise in saying the company has policies in place".
Asked if he believed he would be interviewed as part of the review, Mr Healey said: "I have certainly got something to say if they are interested, but I don’t think so."
Told of the review’s five terms of reference, Mr Healey said: "One of those areas is quite useful. The others seem to be an exercise in saying the company has policies in place. The reality is the systems don’t work as the paperwork describes."
He also questioned the value of Deloitte carrying out the review.
"I struggle to recall an audit produced by Deloitte that I’d characterise as robust and insightful. I do, however, see the irony in Deloitte auditing a company led by the winner of the 2014 Deloitte’s Energy Excellence Awards young executive of the year."
It was announced earlier this week that Aurora approved a $30.25 million programme to replace close to 3000 condition-zero and condition-one power poles by December next year.
That announcement followed Mr Healey, a former employee of Aurora Energy, going public with his concerns about the risks the company’s network posed.
According to regulations, condition-zero poles are identified as being "not fit for actual load", which means they could fall down without any environmental influences, and condition-one poles are "not fit for design load", which means they could fall down in a wind.
Mr Crombie said last week there could be "consequences" for the board and management of Aurora and Delta if the review found their response to the power pole situation in Dunedin and Central Otago had been lacking.
