Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Contract collusion at Corrections

Simon Power
National Party Law & Order Spokesman

25 October 2006

Contract collusion at Corrections

The Corrections Department allowed two consultants among those responsible for overseeing the building of four regional prisons to write each other's job description and set each other's remuneration range, says National's Law & Order spokesman, Simon Power.

"This is just one very concerning aspect of the Regional Prisons Development Project (RPDP) unearthed by Audit NZ, and deepens the mire Corrections finds itself in over this whole project."

Mr Power is releasing an Audit NZ report into the project, which found that:

The Project Director and the Manager, Administration and Contracting, 'were involved in the renewal process for each other's contracts', including the remuneration range, the request for proposal and the evaluation plan. Three Steering Group members 'were involved in the ... renewal of the Project Director's contract but that the Steering Group as a whole was not.'

"There is something very wrong when consultants are able to write each other's pay rates and conditions, especially when one of them, two days after he resigned from Corrections, took up a contract for work that was not put out to tender.

"John Hamilton was originally paid $1,000 plus gst a day, increased to $1,764 in 2004, and up till February this year had been paid $2 million for overseeing a $490 million budget blowout.

"There is a smell about this and it is time Minister Damien O'Connor gave taxpayers an explanation.

"It says plenty that Audit NZ went to pains to recommend that future engagement of key consultant personnel 'should be managed by the Department alone, preferably through an independent consultant (if necessary) and its Steering Group'.

Mr Power is also releasing letters by Auditor-General Kevin Brady to Corrections and several complaints that confirm he was concerned about 'some peculiarities' in Corrections' relationship with John Hamilton and his company, Jagcon, saying 'the process for evaluating and deciding between the individual tenders was not documented as well as we would expect given the nature of the role, the remuneration involved and the responsibilities of the successful tenderer'.

"These reports merely thicken the murk surrounding the construction project, which has blown its budget by $490 million."

Audit NZ report, A-G letters: - http://www.national.org.nz/files/Power_Brady.pdf


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news