31 minutes ago

Mayor, councillors call for Wellington Water board chairperson to resign

31 minutes ago
An independent report reveals Wellington Water staff took four months to tell the region's councils about an error in budgeting advice, which has left the councils with a bill of $51 million over three years.

Wellington Water board chairperson Nick Leggett. Photo: RNZ / Reece Baker

Wellington's Mayor Tory Whanau and most of the city's councillors have officially requested that Wellington Water chairperson Nick Leggett resign.

Summaries of reports by AECOM and Deloitte into Wellington Water were released on Monday, finding its maintenance spend was far higher than four other comparative councils, and that it had not managed contractors well, with poor financial oversight.

In a covering note attached to the full AECOM report released on Thursday, Wellington Water said its higher spend was because the network was older and in poorer condition - so it broke frequently and cost more to fix.

Wellington Water's shareholding councils - Wellington City, Greater Wellington, Porirua, Hutt City, Upper Hutt and South Wairarapa - make up the Wellington Water Committee.

A letter to the committee on Thursday from Wellington's mayor, supported by most councillors - aside from Diane Calvert, Nicola Young, Tony Randle and Nureddin Abdurahman - called for Leggett's resignation and a refund for ratepayers, from contractors who they say were overpaid.

"The public response to the reports is one of anger and frustration. Rightly so given that millions of dollars in hard earned rate payer money has lined the pockets of contractors while our pipes have further deteriorated over recent years," it said.

"As it stands myself, and a majority of Wellington City Councillors and pouiwi, do not have confidence in Nick Leggett as chair of the WWL and Leanne Southey as the board member responsible for audit and risk."

Wellington mayor Tory Whanau. Photo: RNZ / Samuel Rillstone

They proposed the committee should remove Leggett as chairperson.

If the committee did not agree, they wanted Leggett, Southey, and Wellington Water chief executive Pat Dougherty to front the council, answer questions and apologise to ratepayers.

However, they wanted it known they supported Dougherty.

"He has taken on a huge challenge and, for he first time in years, we are getting straight talking and real action to improve things at Wellington Water."

Whanau told RNZ on Thursday she supported Leggett stepping down, but acknowledged the decison needed to be made unanimously by the Wellington Water committee.

"Our council has come together over the last couple of days, and as a result of the work we've done over the last couple of years regarding Wellington Water and what we're hearing from the community, [after] the reports that were released earlier this week, is that people want accountability."

Whanau said that if Leggett did not go, she still wanted Wellington Water held to account via a "suite of measures...We've laid out a plan which we think will help regain public support and trust into insuring that we can still deliver the best water services for our region".

But Lower Hutt Mayor Campbell Barry, who is the chair of the Wellington Water committee, says it's premature to be calling for heads to roll just yet.

He said Nick Leggett and Pat Dougherty need to come to a meeting scheduled for Monday afternoon and explain what actions they've taken since the release of the report, and their plan moving forward.

"And then ultimately it's a discussion for all of the those shareholding councils post that.

"It's important that we actually have a bit of process in here."

Meanwhile, Wellington City Councillor Ray Chung said while he has signed the letter he also thinks the water committee needs to take responsibility for the situation.

As well as Leggett's resignation, councillors wanted:

  • An analysis of Wellington Water's unplanned maintenance costs, with a view to seeking either a refund for ratepayers, or discounted rates on future work, from contractors
  • A public call to previous staff and contractors if they had information about poor practice or fraud
  • The findings of the Deloitte and AECOM report to be referred to the Auditor-General for investigation
  • A meeting with the local government minister to ask for support to ensure value for money from ratepayers
  • Monthly rather than quarterly meetings of the Wellington Water Committee
  • Appointment of a person with contract management expertise to monitor Wellington Water's work

"These actions to deal with the issues at Wellington Water Limited recognise the severity of the failings at the organisation," the letter concluded.

"If we fail to act appropriately then ultimately those failings will be our own.

"I look forward to discussing these with you and hope you will support all these actions so we can provide united leadership on behalf of our residents."

On Tuesday Leggett said he was "taking soundings" on whether he should resign after a scathing report revealed possible theft and problems at his organisation.

"I could be the sacrificial lamb," he told Morning Report on Tuesday.

He could also help with the fix, he told the programme.

Both Nick Leggett and Leanne Southey told RNZ they would not be making any comment before they meet with shareholders on Monday.

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