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JUDGE (n.) A law student who marks his own papers
- H.L. Mencken
"Nearly all men can stand adversity, but if you want to test a man's character, give him power."
- Abraham Lincoln
The Judge files contain background factual data on judges, as well as analysis which is more subjective in nature. Where analysis and opinion are provided, they are the considered and sole opinion of the editor.
Information and news tips on judges can be sent to Spartan News Limited through various means listed on the 'Contact Us' page. Information may be submitted anonymously but it would be very helpful if reference or source background can be supplied along with information.
KIWIS FIRST
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JUDGE LANCE CRIMINAL TRIAL
15 March 2010
Former Deputy Judge of the Independent Police Complaints Authority
Michael Lance QC will face trial in the North Shore District Court on 24 March 2010 for willful vandalism. As first
reported on
kiwisfirst a year ago, Lance was witnessed "keying" the car of businessman Richard Cummins in front of the Judge's Browns Bay apartment by café patrons across the street. Despite the trial being set for months, the half dozen witnesses were only subpoenaed this weekend.
Further investigation of Judge Lance after his arrest uncovered a disturbing history of criminal conduct. This included similar incidents of vandalism where the Judge was questioned but never charged, as well as the Judge throwing a trial in Rotorua of a lawyer charged with fraud and blackmail years earlier. That lawyer, caught on tape trying to blackmail the detective prosecuting his drug-dealing client, turned out to be the business partner of the Judge's son Simon. Without disclosing the relationship, Lance had himself appointed trial judge and travelled down from Auckland to preside. In a brazen display of power, Lance J found the lawyer not guilty and then publicly castigated the police for prosecuting the lawyer. The lawyer cannot be named because Judge Lance additionally gave him name suppression.
Judge Lance's perversion of the course of justice in the criminal trial of his son's law partner occurred when Supreme Court Judge John McGrath was Solicitor General and Police Complaints Authority Judge Lowell Goddard was Deputy Solicitor General. Police hierarchy reported and detailed the corruption to the Solicitor General and deputy, but McGrath and Goddard concealed the evidence of Lance's criminal offending from the bench and dismissively stated at the time that prosecution of Judge Lance was "not in the public interest". At least one high ranking Police inspector quit out of disillusionment. The important news story was never reported by the NZ media.
Subsequent
Official Information Act requests for this evidence held by the Crown Law office have been stonewalled by claims the evidence is protected by legal privilege. Appallingly, both Justice McGrath and Justice Goddard gave ringing endorsements to Judge Lance's subsequent promotion to Judge of the Independent Police Complaints Authority. Judge Lance wasted no time claiming victory over the Police officials who had complained about his criminal conduct to no avail years earlier.
Years after McGrath and Goddard's cover-up of Judge Lance's criminal misconduct on the bench, Judge Lance successfully sued a radio talkbalk host Mark Bennett for defamation after the host called the Judge "idiotic".
Judge Michael Lance is currently retired. He is aggressively defending the charge but does not want a jury trial. The trial should prove interesting even if the New Zealand media are afraid to report it. BACK TO FRONT PAGE
SOLICITOR GENERAL CLAIMS HE IS VICTIM OF CONSPIRACY
15 September 2009
New Zealand Solicitor General David Collins is currently defending at least three unrelated complaints to the
New Zealand Law Society for alleged legal misconduct. One is by
kiwisfirst editor Vince Siemer, in relation to representations by Mr Collins to the Auckland High Court in January 2008. In brief, that complaint alleges Collins knowingly made false claims to initiate a contempt action that the www.kiwisfirst.com website was in breach of an interim injunction, despite his office conceding that the content was "fully compliant" with the injunction terms. The complaint also alleges that he deliberately misled Parliament by misrepresenting to the
Justice and Electoral Select Committee in August 2007 that the matter was before the Courts - and thereby off limits from a Parliamentary inquiry.
Mr Collins has responded by letter dated 3 September 2009 to Secretary of National Standards Committee Mary Ollivier that he considers he is the victim of a conspiracy by Mr Siemer and the other complainants. Presumably, on this basis, he refused to address the substance of the complaint and supporting evidence in the form of a 6 September 2007 email indicating his office agreed months before that the website was not in breach the injunction. Ironically Mr Collins used his response to threaten the Law Society with prosecution for contempt of Parliament if he considered the Law Society was "to collaterally challenge" the Select Committee's decision founded on what Speaker of the House Lockwood Smith had subsequently determined "may not have been correct". Dr Smith's conclusion was reached before he became aware of the documentary evidence that David Collins was personally involved in the deception of the Committee.
Collins elected to take a global position in his reply. He appended a copy of the resultant High Court Judgment ordering Siemer to six months prison for failing to "unconditionally close down" this website as defence that his actions in seeking Mr Siemer's imprison were appropriate. back to front page
COURT ORDER SILENCES CORONER AND CONCEALS FARDELL SUICIDE FROM PUBLIC

27 August 2007
Late in July 2007 it was revealed that Auckland High Court Justice Paul Heath ruled last December - more than a year after
Robert Fardell QC (right) fell to his death from the 15 metre high Takapuna Head cliffs into the rocky surf at high tide - that the Auckland Coroner's findings and the evidence into the bizarre circumstances of Fardell's death would be largely suppressed. This Court ruling by Heath J followed prominent barrister Harry Waalken QC obtaining a restraining order in July 2006 preventing the Coroner from releasing his written report while the family sought a judicial review designed to censure and obscure the Coroner's findings. Unfortunately for Waalken, the cat had already been let out of the bag at a special inquest conducted at the Auckland Coroner's Court in June 2006. This was when Auckland Coroner Dr. Murray Jamieson issued an oral report stating Mr. Fardell died from drowning, with the post-mortem examination revealing drowning was precipitated by massive injuries consistent with a fall immediately prior.
With foul play and suicide the likely scenarios facing police officers responding to report of a lifeless body on the rocks, foul play must reasonably be ruled out simply on the response of police that day finding a middle-age man unexpectedly dead. What is known is that the police and ambulance response to the call of a body found 6:30 pm 11 December 2005 as the tide receded was unusually brief for an untimely and, presumably, uncertain cause of death. Although Mr. Fardell was 52 years old and in good health at the time he died, neither cordoning of the scene nor forensic analysis in-situ was apparently conducted. The ambulance crew left shortly after inspecting the top of the cliff above where the body was found. Moreover, as Fardell was an extremely heavy-set man who additionally had to breach a fence to reach the edge of the cliff, it is highly unlikely that his fall could have been an accident or murder in this area active with people enjoying the early summer weekend.
Nonetheless, Barrister Waalken vehemently pressed the Coroner that suicide was not a finding the Coroner could legally make - or even mention. While the Coroner seemed ultimately prepared to delicately acquiesce to Waalken's demands, Waalken's subsequent legal motions that the Coroner permanently seal the evidence and his finding were rejected outright by the Coroner as incompatible with the fundamental precept of transparent proceedings and justice. It is this ruling by the Coroner that has now been overturned by Auckland High Court Justice Heath.
There has been some speculation, unproven, that Mr. Fardell had a life insurance policy, the death benefit from which may have been lost if the Coroner's findings indicated suicide. However, it is more likely for reasons that will become apparent deeper in this story that, given the tremendous media exposure to the death, concerns were heightened within the judiciary that allowing the circumstances of the death to be made public would only increase the public's curiosity as to what drove Fardell to such self-destruction. It was anticipated that attention into the deceased's sordid personal and professional life would then raise legitimate and troubling questions as to how such a person could reach the pinnacle of the legal profession and be next in line for a judicial appointment while those in authority had turned a blind eye to numerous disturbing complaints concerning his professional conduct for several years leading up to his death.
In the days immediately following his death, the
New Zealand Herald ran front page stories claiming that Mr. Fardell died of a heart attack while swimming - irresponsible news reporting easily dispelled by facts that were immediately available to any reporter interested in accuracy. Other than the location of the body on rocks hundreds of meters from the nearest beach, Mr. Fardell was not dressed for a swim as he walked away from his house for the last time. The inquest officer assigned to the case said the body was found with shorts and no shoes but that his experience was "articles of clothing quickly get separated from the body in the water". And as any viewer of CSI can tell you, there are definitive forensic tests to quickly determine whether someone has suffered a fatal heart attack.
The inquest officer, Paul Herman of the Takapuna Police, immediately realized that he was in over his head on this investigation. The last person to talk to the deceased was Chris Morris, son of (now retired) High Court judge David Morris. Chris Morris admitted to Herman that he had come to Fardell's home this Sunday afternoon to discuss pending legal matters with the deceased but declined to grant a formal interview or provide further detail. Same with the widow. Also, as the press was widely reporting that ten High Court judges had attended the funeral, the estate hired Barrister Harry Waalken QC, widely regarded as a legal Houdini on medical cases, to advance the family's position on the death - and stymie the investigation. Faced with such powerful stonewalling Mr. Herman did not need to be a genius to identify that careers are made or lost on how someone might handle himself in an investigation where a litany of prominent lawyers and judges were not only expressing a keen interest in his approach to the investigation but were simultaneously speaking out effusively in the press about what a great man of integrity Mr. Fardell was.
Mr. Fardell undoubtedly had many fine qualities, but integrity was not one of them. It didn't help that Mr. Herman quite quickly uncovered this darker side to the man. Herman casually revealed to a private investigator early in his investigation that an Asian gang Fardell had a falling out with were phoning him in an attempt to gain information. Within a month Herman was also informed that Fardell was being sued in the Auckland High Court for deceptive practices by former clients Paragon Oil Systems Limited and Vince and Jane Siemer, and that an application detailing allegations that Fardell three times perjured himself had been filed and served less than two weeks before his death. Adding insult to a potentially career-killing injury for Fardell was the fact that Hugh Williams, a judge whom Fardell considered dim-witted and vain and, hence, was an irresistible butt of his jokes, was, as judge in the case, going out of his way to unduly protect Fardell. Fardell was a proud man whose career and legitimate standing among his peers meant everything to him. This graft from an unlikely ally whom he had been all too quick to dismiss as unprofessional was a tremendous blow to his ego as much as an inescapable symbol of poetic justice.
Yet another former client, New Zealand inventor Hugh Price, was also embroiled in a legal battle against Fardell before he died. Mr. Price had years earlier obtained a ruling from the Lay Observer that overruled the Law Society's dismissal of a formal complaint he had lodged against Mr. Fardell for deceptive practices and seeming incompetence. Despite this ruling of the Lay Observer, the Law Society refused to act on the complaint. Now, in December 2005, Mr. Price was again challenging Fardell in a current case for acting in a conflict of interest capacity.
Topping off all this was Fardell's close personal and business relationship with powerful Auckland insolvency practitioner Michael Stiassny, a relationship he would come to ruefully regret in the weeks before his death This was due in large part to (what Fardell was obviously convinced to be) an intentional release of information by his former friend that helped expose Fardell's legal scams. This information put Fardell's career at risk in addition to severely undermining his credibility. Whether this was the straw in the mountain of straw that broke the camel's back is difficult to say. However, given the significant betrayal by someone he had put so much trust in, it is not difficult to surmise this weighed heavily on Fardell as he solemnly walked to the precipice this otherwise sunny Sunday. Ironically, as Stiassny was trustee of the Fardell family trust (Delfar Holdings Limited) at the time of his death Fardell could not escape his clutches even in death.
In this pressure cooker where the powerful legal community's obituary contrasted so sharply with the unfolding facts of the man's real life, Officer Herman did the only thing he considered safe under the circumstances - he went to ground. As the Coroner's representative, Officer Herman was responsible for publicizing the public inquest. Despite the tremendous number of contacts he had received from media and financially interested parties, Officer Herman informed only the widow and Harry Waalken QC of the public inquest that he had hastily convened barely 2 months after the death.
Officer Herman would arrogantly respond later to those who felt slighted by his subterfuge regarding the public inquest that he was under no obligation to inform interested parties of the date or setting. This was simply untrue. The Coroner's Act 1988 specifically required him to notify in advance parties who may have an interest in the inquest. In the winter of 2006 Judge Borrin issued a ruling on behalf of the Police Complaints Authority of New Zealand stating Herman was derelict in his obligations under the Act. The Coroner had earlier been compelled to conduct a special inquest due to Herman's railroading of the public one.
The year 2006 saw significant changes in law for the Coroner's Office. The 1988 Act was repealed in favour of the Coroner's Act 2006, which was passed into law in August 2006, and the establishment of the Coronial Services of New Zealand was formed on 1 July 2007. Perhaps this chaos explains why the Coroner - having a year earlier been ready to issue his written inquest findings before a cease and desist order of the Court prevented him from doing so - released his report on 20 July 2007, seven months after Judge Heath finally gave him the approval to do so - sans the evidence and guts of the report. Perhaps the Coroner's delay was a demonstration of conscious indignation at the Court imposed coverup.
So it was that what started as a whitewash intended to be quickly disposed of in record time was eventually whitewashed by judicial order more than a year and a half after the fact. And when one reads the Coroner's brief final report, it is obvious that Mr. Waalken earned his substantial fees on this one. In legal speak, lawyers deceive by omission. This is obvious in this case when one reads the Coroner's two page report. This reporter's favorite line from that report is
"No evidence was located to suggest that Mr. Fardell harboured any intention to commit suicide. Indeed, his work on forthcoming cases suggested to the contrary". It is as perverse as it is ironic that the Coroner could not write massive injuries from a fall directly contributed to the drowning but was encouraged to get into the highly speculative (let alone non-medical) realm of saying busy people do not have time to commit suicide. Read Coroner's censured report.
In obvious double-talk the new Coronial Services website states on its' front page,
"The (new) Act was designed to enhance public confidence in the integrity and independence of the coronial system." All too sadly, the net result has proven the opposite true. BACK TO FRONT PAGE
JUDGE HUBBLE HONOURS HUBBARD AS 'OCCUPIER' OF CITY BUILDINGS
11 September 2007
In a ruling handed down by Auckland District Court Justice GV Hubble today, the Judge recognized the Mayor as
'occupier' of
'the whole of the Council Chambers and its buildings' for the intent and purpose of the Trespass Act 1980. This means the Mayor has the absolute right in law, according to Judge Hubble, to order people removed from city buildings whose presence the Mayor decides to be objectional or disruptive - or if he has good reason to believe they might become so - so long as he does not act 'capriciously' in doing so.
Judge Hubble's ruling found community activist Penny Bright guilty of crimimal trespass and discharged her without sentence, saying that
she was well meaning and had suffered enough. The case stems from a 23 November 2006 Council Meeting called under urgency to consider a new waterfront stadium in Auckland. Hubbard had denied Ms. Bright speaking rights at the meeting. Ms. Bright demonstrated her displeasure with the Mayor's refusal by displaying a 1 by 1.5 metre banner in the public gallery that read "Mayor Hubbard's DICKtatorship is a CEREAL matter - Don't Buy it". The Mayor demanded she put the banner away but Ms. Bright refused; this refusal prompting the Mayor to temporarily adjourn the meeting while he summoned Police. By the time Police came the banner was gone but, when Ms. Bright refused to leave the meeting, the Mayor had her arrested for trespassing. The stadium proposal pushed by Hubbard eventually failed. The case of criminal trespass against Ms. Bright was pursued by the Crown at the Mayor's urging.
The mild-mannered Hubble appeared reticient in issuing his judgment. His decision ran contrary to three previous District Court rulings that had favoured Ms. Bright in similar circumstances. Still Hubble remarkably praised Ms. Bright and, in response to Ms. Bright submissions ahead of the sentencing, said he agreed with all the points she made. The difference this time, according to the Judge, was the Mayor found the banner justifiably objectionable. The Judge agreed.
With his judgment today Hubble also strayed further than previous District Court judges in ruling the Mayor was the rightful 'occupier' of the City building and, as such, was within his right to demand people being disruptive or guilty of objectionable conduct be cited for criminal trespass if they failed to leave when ordered to do so. Paradoxically the Judge recognized the public's right to access public buildings and attend public meetings. He therefore qualified his judgment by stating the Mayor, as occupier, had this right
"provided that occupier is not acting capriciously or on the basis of racial or other prejudice". Mayor Hubbard's actions, which included refusing Ms. Bright speaking rights on a number of previous and subsequent occasions, were apparently not deemed prejudicial by Judge Hubble due to His Honour's failure to mention this evidence in his judgment. The Judge also did not seem to mind that neither the Police constable nor Auckland Council Service's Manager Peter Burden could recall whether they had specifically issued a trespass warning to Ms. Bright before arresting her. The case included prosecution submissions and defense submissions
Given the stigma of a criminal conviction, Ms. Bright said she is determined to appeal Judge Hubble's decision. Back to front page
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Justice David ABBOTT, Associate High Court Judge
Professional Data |
| Postion & Titles: |
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| Judge of: |
High Court, Auckland Associate Judge 2005 |
| Specializations and Professional Interests: |
Economics |
| Professional Comments: |
Seems to be a no nonsense judge. Looks to the substance of an issue rather than its form, requiring hard evidence if a contention to the seemingly apparent is to be made. May lack patience for arguments that are not developed quickly and unlikely to be swayed by compassion arguments.
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| Background / Education: |
Graduated LLB (Hons) from the University of Auckland in 1970. He studied in Toronto for a year before moving to London in 1971 to take up a position with the firm
Linklater & Paine. From 1975 to 1976 he undertook empirical research into costs of litigation for the London School of Economics and returned to New Zealand in 1977 as Executive Officer to the first Wanganui Computer Centre Privacy Commissioner. In 1978 Mr. Abbott joined
Price Voulk Brabant & Hogan in Auckland as a barrister and solicitor. He joined
Shieff Angland Dew & Co in 1979 becoming a litigation partner in 1983 and a management partner from 1992. In 1997 he became a barrister sole. He was appointed an Associate Judge of the High Court in March 2005. Associate Judge Abbott is based at the Auckland High Court |
| Degrees: |
LLB (Hons.) Auckland 1970 |
| Admitted to the Bar: |
1971 |
| Company Involvements: |
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| |
Personal Data |
| Born: |
1947
New Zealand |
Sex: |
Male |
| Married: |
19 |
Children: |
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| Interesting Relationships and Coincidences: |
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| Miscellaneous: |
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Attorney-General Margaret Wilson today announced the appointment of
David Abbott as an Associate
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STIASSNY'S JUDGES
28 December 2009
On 5 May 2005,
[CENSORED BY ORDER OF THE SUPREME COURT]. Five months later, France was promoted to the NZ Court of Appeal. For the last five years, no less than 6 NZ judges have prevented this evidence from being raised in Court.
Here is the evidence Ellen France J had before her:
1) Stiassny's Report to the High Court dated 12 March 2001, claiming he would not be able to pay unsecured creditors ($25,826) because shareholders rejected his demand to provide ($148,000) in further capital funding. The company had over $150,000 cash in the bank and NO debt!
2) Two handwritten file notes from Stiassny's lawyer which state that Paragon was
"insolvent according to Ferriers" (stiassny's firm Ferrier Hodgson) . This was two months after Stiassny's Report to the High Court stating payments to creditors were stopped. Stiassny's relationship with this lawyer was extremely close. Stiassy was also sole trustee of the lawyer's family trust at the time.
3) Affidavit from Stiassny's Manager Alan Garrett stating the common tests in determining insolvency "are the extent to which assets exceed liabilities
and
the ability to meet debts as they fall due."
[CENSORED BY ORDER OF THE SUPREME COURT]. Stiassny claimed his overcharge was the result of confusing the Paragon account with a company called "Paramount". He said once Mr Siemer challenged his fees, he discovered the error and corrected it. As the overcharge was (according to Stiassny) not a calculation error but rather a billing placement error, this meant his account would show a corresponding invoice to, and payment from, "Paramount". But Stiassny would not provide his bank records showing this to be the case even after the Court of Appeal suggested to his lawyer that he do this. The reason why became apparent when the Managing Director of Paramount provided an affidavit stating that Paramount had never engaged Stiassny or his firm.
Why is the false insolvency claim, if not the deceptive billing, by Stiassny so damning? Because such rudimentary assessments are central to any accounting exercise - - as well as Stiassny's unfettered reputation as a worthy big fish in a small pond. Through his banking connections, Stiassny has been entrusted with determining insolvency of some of New Zealand's largest companies. A large portion of these companies' shareholders had been screwed. As a small, cash rich company that was not trading and had no debt other than a few minor unsecured creditors, Paragon was a microcosm of Stiassny's
modus operandi. As accounting analysis goes, it was one of the simplest exercises. According to Michael Stiassny's Report to the High Court and notes from his own lawyer,
[CENSORED BY ORDER OF THE SUPREME COURT]
[CENSORED BY ORDER OF THE SUPREME COURT] But Stiassny proved more powerful than the oversight body. The Institute found every reason not to consider the unassailable detail.
Member of Parliament Lockwood Smith even made an inquiry to the Institute asking why the fraud allegations against Stiassny were not considered. In response to Dr Smith, the Institute implied Siemer had provided him a blinkered account. Siemer wrote back to the Institute (copied to Dr Smith) to advise that Dr Smith had been given the complete file and further authorised them to share everything with him in order to answer his question on the fraud. The Institute hired a lawyer instead.
[CENSORED BY ORDER OF THE SUPREME COURT] Their excuse was because the fraud was not over $500,000, it was not considered serious enough. This was a perplexing excuse considering they were prosecuting former ACT MP Donna Awatere Huata over $80,000 at the time.
After Siemer evidentially exposed material contradictions in Staissny's responses to the Institute, Stiassny requested the Institute put the formal complaint "on hold" pending the court case. The Institute was quick to comply. Stiassny's lawyers then lied to the Court, stating the complaint against him had been rejected by the
Institute and
SFO when the fact was both declined to consider the evidence. At the Court of Appeal Stiassny's mate Robert Chambers J wrote the Judgment upholding the gag injunction on "seriously arguable case in contract" grounds, even though these grounds were rejected by the High Court Judgment and had not been cross-appealed. Chambers J claimed that France J agreed with him on this ground, even though her Judgment contradicted this.
Now that Judge Mark Cooper replaced this interim injunction with a permanent injunction prohibiting defamatory publications only, the truth and evidence can be published. Not that Cooper J could find any defamatory publications. Stiassny's own testimony at the ex-parte trial centered on abstract and irrelevant claims that his kids were teased at school because of the published revelations.
The fact remains that the Institute of Chartered Accountants have never considered the formal complaint detailing extensive evidence of accounting misrepresentations by Michael Peter Stiassny. The Serious Fraud Office declined to investigate. The New Zealand Courts have never allowed the evidence of this "accountant's" accounting to be considered.
Siemer also has evidence that New Zealanders are paying far too much for electricity as a result of Stiassny's disasterous expansion of Vector Energy in 2004-2005. Your Judges do not think you should see this. Chief Supreme Court Justice Sian Elias' husband is on the Vector Board of Directors. She now wants to sit on Siemer's appeal of his prison sentence for allegedly breaching the gag
interim injunction Stiassny obtained in a civil defamation case where Siemer was prohibited by Court order from defending himself (Potter J 9 July 2007 CIV2005 404 1808) unless he paid Stiassny over $250,000 ahead of hearing and his statement of defence invalidated by Judicial order (Hansen J 19 April 2007 CIV2005 404 1808) after the Judge ruled the defences were valid (Hansen J 8 September 2006, CIV2005 404 1808). BACK TO FRONT PAGE
$62 Million New Annual Budget for Auckland Consultants
21 May 2008
In an Official Information Act response to Water Pressure Group Spokesperson Penny Bright last week, Auckland City Council revealed previously undisclosed data on the City's financial expenditures and structure. Among other things, it disclosed a budgeted $62 Million for "external experts and specialist advisors" in the 2008-2009 fiscal year. Of this figure, $45 million is earmarked under the operating budget, with the remainder assigned to capital expenditures.
One example of a capital expenditure is the Auckland Art Gallery Development, which is budgeted to cost ratepayers $113 million - $15.1 million of which is budgeted for consultants over the life of the project. Compared to these figures the $1.8 million paid to Archimedia in fiscal 2007 for the Art Gallery Masterplan Study into building a conference room into Albert Park seems paltry.
To gain some perspective on these expenditures, $157 million is the annual budget for Auckland City staff salary and wages.
The current consultancy budget is twice what the average annual expenditure was under former Mayor Dick Hubbard - a figure that created public consternation and, many consider, was a significant factor in Hubbard's re-election defeat. Weeks before the election last year, then Mayoral Candidate Lisa Prager exposed the fact that $91 Million had been spent on outside consultants by Auckland City in the prior
three years. She and Ms Bright immediately filed OIA requests to Auckland City Council for a detailed breakdown of exactly where Auckland City Council rates monies were being spent on contracts to the private sector. Auckland City Council's CEO David Rankin
(left) has refused twice to provide that information, stating
"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 charged and demand the same pricing. Equally, their competitors may deduce their pricing structure and use it against them."
An 8 May 2008 internal report to the 'Finance and Strategy Committee' recognized the increase in overall consultant and private contractor expenditures but associated this with
"record levels of capital investment and significant internal change", adding
"There has been some media interest in this issue." A consequence, according to the report, was a Committee resolution at its 13 February 2008 meeting to request CEO Rankin
"review the effectiveness, mix and level of consultancy and in-house resources used to deliver council service and projects... with the aim of reducing council's operational and capital expenditure budgets."
Ms Bright's response is this is years overdue and admittedly comes only because of media interest.
Other revelations in the OIA report include an admission that
"the majority of decisions to contract out services were made in the 1993 to 1996 period", that no cost-benefit analysis was ever done and that the internal auditing process rests largely if not entirely on "terms of employment" which require Council staff to disclose actual or potential conflicts of interest with engaged contractors on a continuing basis.
The report made clear that checks to ensure there are no 'conflicts of interest' are simply not made.
The report failed to provide specifics on, or values of, contracted out services as requested. Detailed accounts are the source of an ongoing battle Ms Bright is having with the Council.
Ms Bright claims ratepayers are entitled to know how their money is being spent and she launched a rates boycott earlier this year to press her point after finding out a large number of City staffers have signing authority to engage up to $1 million contracts with virtually no oversight. When the City responded by initiating Court proceedings against her, she immediately made demand for the Council to provide this information on contracting out under discovery. Bright's key interest is where $800 million in private sector contracts is being spent. Ms Bright is defiant:
"If the Council are not spending our money wisely and efficiently, why should we continue giving them any? That's why I'm not."
Ms Bright's request for
Information which confirms how the contracting out of Council services is authorized, and by whom prompted a referral from the City 'Information Team Leader' Helen Alcock to Section 5 of the Auckland City Council Delegations Manual and the Council website (with the message
"We are currently updating the delegations register to reflect the new committee structure and the realignment of the organization. The committee delegation in the register are being updated to the new committee structure." )
Fiscal restraint and accountability have changed little since Mayor John Banks was elected on a platform of 'affordable progress' and 'line-by-line accounting'. Since taking office Mr Banks has softened his pledge on elimination of charitable payments to Auckland City's general fund from such Council-controlled organizations as MetroWater Limited, saying rates would have to go up a further 6.5% if such a move was immediately effected.
Chairman of the Finance and Corporate Management Committee Doug Armstrong suggested the Council's seeming inability to restrain spending on consultants could be due to the new council being only 6 months old, notwithstanding the fact that Mr Armstrong has been a long-serving member of the committee.
As Chairman Armstrong gets familiar with the newer City Councillors, Auckland ratepayers are becoming increasingly disenchanted. Rates over the last 3 years have increased more than five times the rate of inflation, with real fears this trend will continue. It is reasonable to view expenditures such as the $500,000 beach toilet installed at Pt Chevalier last year the tip of the wasteful spending iceberg when so much of the City's expenditures for services are hidden behind 'commercial confidentiality'.
Until Auckland City Council comes to grips with its own financial house and creates an environment where payments to contractors are transparent and audited, the City's ratepayers have major cause for worry. # BACK TO FRONT PAGE
TRANSPARENCY INTERNATIONAL INVISIBLE IN NEW ZEALAND
12 February 2009
In a 9 square metre closet next to the elevator shaft on the fourth floor of a former department store in Wellington resides an eight year old 'autonomous chapter' of the Berlin based
Transparency International. The office is so obscure that a
kiwisfirst staffer searching for the office in November resorted to asking a Courier delivering a package on the same floor where it was. The Courier had no clue. The closet office was finally found but no one was home. The only identification was a A4 letterhead stationary folded in half and taped to the locked red door. A business card was left on the door with a request to call, but no return call came.
A Wellington man first brought the NZ chapter to the attention of
kiwisfirst a year ago. He had read on the Ministry of Justice website how TI had rated New Zealand along with Iceland the most transparent of the 180 countries it ranks. This raised questions for the man, so he phoned the office. A former kiwifruit salesman with dubious credentials answered the phone and introduced himself as the Chief Executive Officer. He was so pleased to have a phone call from another Kiwi, saying it was a rare thrill. He spoke effusively of the chapter's mission to bring transparency to the 'Pacific Islands'. It was minutes before the caller could squeeze in a question. Finally, the man asked what the chapter was doing about transparency in New Zealand and CEO Paul Browne haltingly responded that this was not a problem. The call abruptly ended.
Kiwisfirst finally got through in January. CEO Browne again answered the call and quickly went for the sell. TINZ was doing wonderful things, he said. Business corruption was a result of a lack of transparency and TINZ were deeply engaged in spreading religion to the hapless Pacific Island nations which desperately needed this gospel. Déja vu hit the reporter. He played along for a bit, until he found the opportunity during this gospel to ask the enlightened one how the Corruption Perception Index came to rate NZ tops in the world on transparency. Browne matter-of-factly responded the CPI was self evident. This allowed the reporter to ask him whether he was familiar with the October 2006 OECD report which would appear to beg to differ. "Yes", Browne countered defensively, emphatically adding the TI ranking "is a perception index". "New Zealanders believe NZ is highly transparent. My job is focused on Pacific Island nations."
He was asked whether TI's top ranking could be defended when it is actually touted on the NZ Ministry of Justice website as seeming validation why NZ Court judgments need to be trusted without accurate recording of hearings. What others do with TI's opinions was outside their control, he asserted. He insisted TI did not promote the CPI as anything but perception. He was then asked whether the organization was alarmed that the New Zealand Courts were wearing the TI CPI as a badge of honour when the Courts did not allow accurate recording - i.e. transparency - without expressed consent of the Judge. Mr Browne was now uncomfortable. He became suddenly busy. He apologized for having to cut short the call to attend to other pressing business.
The International, not-for-profit Berlin based Non-Governmental Organisation (NGO) was founded some 15 years ago to actively work toward reducing corruption by promoting transparency in government and business environments. Since then, some 90 'independent national chapters' have sprung up. In contrast to the potent fight parent TI has waged to keep its official line promoted on websites like
Wikipedia, source information for the New Zealand chapter was hard to come by for this story. Information from TINZ's official website www.transparencynz.org.nz was strong on platitudes but light on substance - if not misleading. The website link to "Newsletter and documents" did not work. It was soon discovered several directors were added to the website merely to effuse false credibility. Instead of the nine directors listed, inside information suggested there are actually only four.
Kiwisfirst emailed these four directors, as well as CEO Browne, seeking basic information such as number of NZ staff, sources of funding, a newsletter and an accurate list of directors. Every inquiry went unanswered - even a subsequent detailed request for the above information from New Zealander Jeremy Pope, a former New Zealand Law Journal Editor listed as a 'founding member' of the original Berlin Secretariat NGO. Mr Pope is not listed as being connected with the local chapter.
According to the International Secretariat website
"TI raises awareness and diminishes apathy and tolerance of corruption, and devises and implements practical actions to address it." Such a noble endeavour has not insulated the Berlin parent from criticism. The organization has achieved some infamy over past disclosures its funding has come from notoriously opaque (and corrupt) corporations such as ENRON. Secretariat staffers have responded by obtusely referring to the public bloggers ignorance of its goals, relationships with its 'independent national chapters' and fundraising methods on webpostings.
If transparency is the goal of the New Zealand chapter, it could at least be accurately stated that the organization is as invisible to New Zealanders as its closet office. From most reliable indications, the local chapter is little more than a fundraising and lobbying entity for certain NZ bureaucrats and businessmen. The "Deputy Chairwoman" of TINZ, Claire Johnstone, is a principal in a consulting company called Sinclair Robertson Associates. SRA's website brags
"We deliver strategic development services for a variety of clients, ranging from iwi groups to central and local government, not-for-profit organizations and small to medium sized enterprise. We have particular expertise in analyzing and presenting an organisation's business case. This has allowed us to raise equity or access grant funding from government for many of our clients."
Auspiciously omitted from Ms Johnstone's business profile on the SRA site is her directorship of 'not-for-profit' TINZ, as well as her current position as General Manager Corporate for the New Zealand Ministry of Transport. While such obvious conflicts do not necessarily suggest or lead to corruption, it is safe to say few people would find such conduct "transparent". SRA's website solicitation claims to entice new clients, coupled with seemingly relevant omissions, do beg questions. Is TINZ a client of SRA and, if so, did TINZ benefit from the government largesse SRA (and government official Claire Johnstone) get for their clients? If so, omissions of information by double-dipping directors raise legitimate concerns. This is all the more worrisome if done by self-professed anti-corruption advocates of transparency.
TINZ Board Members are a snapshot of longstanding government bureaucrats, with Chairman Gerard McGhie touted as a "38 year member of the Ministry of Foreign Affairs and Trade". It begins to make sense why a fruit salesman is the chapter's CEO.
For a not-for-profit organisation actively soliciting donations, it is particularly surprising how clandestine the local chapter seems to be. It defies reason that any organisation would seemingly refuse to provide rudimentary information such as an accurate list of directors or newsletter. For this reason, Kiwisfirst will continue to investigate this story. Stay tuned. #
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