"I believe that Auckland City Council practices are CORRUPT!"
said Water Pressure Group Media Spokesperson Penny Bright to Auckland City Councillors at the Annual Plan submission hearings today at the Auckland Town Hall.
Ms Bright asked Councillors present if they had heard of the New South Wales Independent Commission Against Corruption (ICAC), which had carried out extensive research in 2000-2001 to help 'develop a profile of corruption risks in local government in NSW.
[www.icac.gov.au PUBLICATIONS "Corruption Resistance Strategies - researching risks in local government - research findings summary" pgs 6-7]
The reasons why the ICAC had conducted this research was because they consistently received more complaints about local government than any other area within the NSW public sector; and local councils had a lot of discretionary powers within their decision-making processes.
The ICAC research revealed that the first such 'key corruption risk area' was in CONTRACTING AND PROCUREMENT.
[www.icac.gov.au PUBLICATIONS "Taking the con out of contracting" pg 4]
Key questions the ICAC asked of NSW Councils to indicate how resistant they would be to potential corruption included:
"Does the council have a code of conduct and do staff and councillors know about it?
Does the council have a register of any gifts and benefits and do staff and councillors know about it?
Does the council provide support and guidance for staff and councillors about what a conflict is and when to declare it, including non-pecuniary interests?
Does the council provide information on ethical work practices to new recruits, contractors and developers, so they know what to expect and how council functions?
Does council record contracts issued, payments made, and any problems with individual contractors?
IS COUNCIL OPEN TO PUBLIC SCRUTINY BY USING ANNUAL REPORTS TO RECORD CONTRACTS ISSUED AS A MEANS OF PROVIDING OPENNESS AND ACCOUNTABILITY IN COUNCIL OPERATIONS?
Does the council have an audit plan, internal audit charter or audit function which keep council activities transparent and accountable?
Does the council have corruption and/ or fraud prevention plans and committees to foreshadow possible problems and decide how to deal with issues as they arise?
Is the council vigilant in identifying possible future problem areas, in order to conduct risk assessment?
Do General Managers understand the relevant provisions of the Protected Disclosures legislation and appropriate internal and external grievance handling procedures?
Is the council walking the talk, ie actually doing what they say they do?"
Councillors were given a copy of Ms Bright's 'Statement of Defence' which was filed today at the Auckland District Court.
Ms Bright stated that she was disputing and would not pay rates until the plaintiff - Auckland City Council:
a) publishes full details of all monies spent by Auckland City Council on private sector contracts for 'goods, services and people' ;
(b) undertakes to conducts a full inquiry/ cost benefit analysis into
(i) the 'contracting out' model for provision of Auckland City Council services as opposed to Council
'in-house' provision and;
(ii) the Metrowater 'commercialised' model for provision of Auckland City Council water and wastewater services to determine on the basis of facts and evidence:-
• Whether Metrowater's 'user-charges' for water and wastewater services are 'fairer', or violate the basic human right of affordable water by disproportionately burdening poorer families;
• Whether Metrowater's user-charges for water and wastewater services encourage water conservation;
• Whether Metrowater is 'more efficient', and the contracting out of water and wastewater maintenance and operation expenses is more cost-effective to the rate paying majority compared with Auckland City Council providing these services 'in-house' via their 'Works Department'.
(Copy of Ms Bright's 'Statement of Defence' is attached to this email.)
"While families cannot afford to put food on their tables or petrol in their car - our hard-earned rates monies are flooding into the bank accounts of private sector consultants and contractors .
To the tune of over $850 MILLION this 2008-2009 financial year.
Yet, projects which benefit the community are to be effectively 'slashed and burned', on the basis that there is not enough rates money for them to continue."
Auckland City Council CEO David Rankin when asked in an Official Information Act request (ACC OIA Request No: 1997) whether the operation and management of 64 services provided by Auckland City Council had been contracted out to the private sector:
a) If so, which companies have these contracts.
b) What is the value of each of these contracts.
c) For how long is the term of each of these contracts.
d) Who decided which company would get these contracts.
e) When were the decisions made as to which companies would get these contracts
Auckland City Council Chief Executive David Rankin replied in a letter dated 8 October 2007, as the reason for denying ratepayers this information about where public rates monies are being spent:
"If we release the names of the companies who have contracts with us, together with the amounts spent, these suppliers could be disadvantaged. Their other potential customers may deduce the rates Auckland City Council are being charges and demand the same pricing. Equally their competitors may deduce their pricing structure and use it against them."
"Why is protecting contractors more important than telling residents and ratepayers where OUR rates monies are being spent? It's time to OPEN THE BOOKS!" continued Ms Bright.
"Put ALL the contracting details in the Auckland City Council Annual Reports/ Annual Plans and on the Auckland City Council website – so THOUSANDS of citizens and ratepayers can see EXACTLY where OUR monies are being spent."
"Why won't this Citizen and Ratepayers majority Council INSTRUCT Auckland City Council CEO David Rankin to provide this $850 MILLION contracting information?"
"We were promised 'line-by-line accounting' and 'affordable progress' - not to mention 'open, transparent and democratically accountable' local government. WHERE IS IT?"
"See you in Court!" concluded Ms Bright.
Penny Bright
Media Spokesperson
Water Pressure Group
Ph (09) 846 9825
021 211 4 127