Posted by: transparencynz | February 28, 2014

Auckland council naive about Identity and the law

identity crisisI have it  in black and white   Auckland council have no policy   with regards to  trading with  undefined or unidentifiable  entities.

My  long over due LGOIMA was addressed  last night the actual response is here EY report response

I have referred to the actual report  previously in the post The Ernst and Young report into Len Brown not worth the paper it is written on

The reason I asked about who the report was written by was because the report  did not  disclose who EY was  and  as I pointed out the report on its last page provides the definition for EY as being

EY refers to the global organisation and may refer to one or more of the member
firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organisation, please visit ey.com.
© 2013 Ernst & Young, New Zealand.
All Rights Reserved.

If you visit the companies register  you will note that there are several  EY companies

ERNST & YOUNG NOMINEES (20067)Registered NZ Unlimited Company 7-Jul-67
ERNST & YOUNG LIMITED (437730) Incorporated 30-Nov-89
ERNST & YOUNG CORPORATE NOMINEES LIMITED (955165) Incorporated 15-Apr-99
ERNST & YOUNG TRANSACTION ADVISORY SERVICES LIMITED (953248) Incorporated 20-May-99
ERNST & YOUNG GROUP LIMITED (1221939) Incorporated 28-Jun-02
ERNST & YOUNG LAW LIMITED (2494153) Incorporated 20-May-10

Go to the intellectual property office  and  you will find that the trade mark EY is registered to EYGN Limited which is not even   registered in New Zealand  but is  apparently registered in Nassau in the Bahamas.  The general disclaimer  with regards to that company can be  found  here

The person at Auckland Council who dealt with the request could well have assumed who the    company was which prepared the  and assumed wrong we will follow up   requesting evidence .

As a private Investigator myself  I find it  most disturbing that  a report has been issued  which has no  evidential value at all   for the  quoted price of $198,751.  I have to wonder if that is  before or after GST .

The law issue

I requested the legal basis on which this report was commissioned

 the response states

The report was commissioned in accordance with s12(2)(a) and 12(2)(b) of the Local
Government Act 2002 (LGA). Additionally, the Chief Executive has broad power
under s42 of the LGA to ensure the effective and efficient management of the
activities of the local authority.

This response totally  circumvents the  requirements of the code of conduct elected members  set out in part 8  and has requirement for an independent panel .

The sections which have been quotes in the response are nothing more than a brush off

12Status and powers

(2) For the purposes of performing its role, a local authority has—

  • (a) full capacity to carry on or undertake any activity or business, do any act, or enter into any transaction; and

  • (b) for the purposes of paragraph (a), full rights, powers, and privileges.

and section 42 sets out the general duties of the  Chief executive

But  when a specific  duty is placed on the  CEO  that takes  prescient over any general  responsibility  in this  case the obligations were to  the  provisions of the code  of conduct and an independent panel   should have been   appointed not an organsiation which had a pecuniary interest in supporting the Mayor  .

Item 2  time sheets

In an open transparent and democratic  society  one would expect a bill for $198,751  to be explained . Private investigators work at $150 per hour  this represents  over 33 weeks   of work  , how many people  worked on it   and  WHERE IS THE EVIDENCE .

The report is such that it has no accountability    paying 200,000  for  which amounts to unsubstantiated opinion  is reckless.

Item 3 Engagement agreement dated 26 October 2013
I have to question  the terms of   any  agreement between EY and Council. the previous CEO  Doug Mc Kay was a member of the committee for Auckland and met with   the members of this elite  group  behind closed doors without any requirement to report back to council  see Download View as HTML

Membership to the committee for Auckland  was justified as  follows

Membership to this committee is an operational issue and was approved by the Chief
Executive, or his staff, within delegated financial authority. As such, no Governing Body
approval is required, nor is the Chief Executive required to report back to the Governing
Body.

Once we drew the attention  of the CEOs  placement on this  committee to the attention of he world  Stephen towns name was removed  from the membership of  the committee for Auckland .

Doug Mc Kay  who  was concurrently  with being CEO of Auckland council  a director of another committee  for Auckland member BNZ .

It appears to me that a CEO  who does not appear to know what  conflict of interest is , spent more time  instructing his fellow members of the committee for Auckland than properly consulting  with the executive body of council who employed him.

We  await with baited breath to see  the path the new CEO  follows,  his removal  from the membership of the committee for Auckland is a step in the right  direction


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