Vincent ward councillor-elect Dave McKenzie was accused on Sunday of financial misconduct while employed as a council contractor.
Last night he said he was not going anywhere and described a social media post alleging he had altered contractors’ invoices to benefit himself as "destructive", "misleading" and "vengeful".
It has drawn hundreds of reactions and calls for him to stand down.
In a long statement issued yesterday, Mr McKenzie said the post misrepresented a 2018 dispute with the council and "appeared to stem more from a vengefully [sic] response to a fractured friendship rather than any reflection on my professional performance".
He acknowledged making mistakes and said he had repaid the council $1000 at the time but maintained fault lay on both sides.
Council chief executive Peter Kelly said a "thorough review" of that 2018 investigation was now under way and the outcome would be shared with the public.
Mrs Kerr, whose husband died suddenly in 2019, told the Otago Daily Times she had evidence to back up her allegation.
She said she had tried to talk to Mr Kelly to express her concerns before the election but was told that Mr McKenzie met the candidate criteria.
She did not raise her concerns publicly about Mr McKenzie during the election as she did not think he would be elected.
"I thought I’m not wasting my time [before the election results were out] but if he does get in I’m going to make sure everyone knows."
Issuing his statement, Mr McKenzie said he was thankful for the opportunity to "put some context into the destructive media post" relating to the conclusion of a property maintenance contract he held with the council.
He also called the post "misleading".
"Out of respect for the late Mike Kerr ... I had chosen not to respond publicly in the past. However, I now feel it is necessary to clarify the facts."
Mr McKenzie said the dispute arose when the council proposed changing his long-running property maintenance contract. After he declined the changes, which he said left him with only after-hours and weekend work under contract, accepted quotes were withdrawn and work reassigned, he said.
He initiated a dispute resolution process, but when he finally got a meeting was told: "We make no apology and will do everything we can to save the council money," he said.
He said the disagreement came to a head over a 2018 Cromwell Hall repair that came in under budget. The council later claimed his combined invoice with a subcontractor breached the contract.
"I repaid the disputed amount of $1000 while the matter was being reviewed."
The Otago Daily Times spoke to the subcontractor who did the work on the hall.
He had been contacted by Mr Kerr in 2018 querying the cost of the invoice for the repair, which had been about double what he had charged out, the subcontractor said.
Mr McKenzie said the council’s internal review alleged that he had applied multiple unapproved margins, which was incorrect.
"The costs in question were legitimate charges related to travel and urgent work, both permitted under the contract. I was not given the opportunity to contribute to that review, which ultimately reflected only the staff perspective."
He worked out the three-month contract termination period and completed all outstanding work.
"Did I make mistakes seven years ago? Yes — as we all do. But I learned from them, as every professional should. Was I solely responsible for the issues that arose? No. Contractual relationships require good faith from both sides..."
Mayor Tamah Alley said she was aware of the social media posts and took the allegations seriously.
"My expectation of all elected members is that their integrity and suitability to serve the community must be beyond reproach at all times."
