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.
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Ohhh kay... they paid Deloitte HOW much to tell them what everyone already knew?
So what now for the courageous Richard Healey?? This man deserves a knighthood on behalf of the public of Otago for saving lives. Trouble is, because he has stuck his head up, lost his job to do so, and exposed behaviour bordering on criminal negligence, lives that would otherwise been seriously endangered or lost, may now be prevented.. and as such a now hidden stat. Yes, in the end no statistic for the accountant to base a figure or action against, nor to vindicate Richard's courage of ending his career for the safety of others. I think the Board as the Person Conducting a Business or Undertaking (PCBU) need to be heavily punished under the H&S at Work Act.. Parallel with Pike River, but for Richard speaking out.. The 'big bang' was headed off. Who knows when it would have happened, but it would have some day. Exact same management focus.. endless pursuit for the elusive dollar. Corporate crime is the only way to couch this incredibly selfish and inward looking 'normal day at the office'. Richard for CEO to do it correctly!!! It's a utility, not a cash cow.. Now take a moment.. Old HSE Act vs new H&S at Work Act.. Any distinct enhancement?? Sadly a waste of taxes it seems..