Parliament

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

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Veronika Meduna: The Kaikoura Rebuild

A Scoop Foundation Investigation

Friday will be a big day for people north of Kaikōura – and for hundreds of construction workers who are racing to reopen State Highway 1 in time for the holiday season.

By the afternoon, the South Island’s main transport corridor will be open to traffic again, more than a year after a magnitude 7.8 earthquake mangled bridges and tunnels, twisted rail tracks and buried sections of the road under massive landslides. More>>

 

BPS HYEFU WYSIWYG: Labour's Budget Plans, Families Package

“Today we are announcing the full details of the Government’s Families Package. This is paid for by rejecting National’s tax cuts and instead targeting spending at those who need it most. It will lift 88,000 children out of poverty by 2021." More>>

ALSO:

Gordon Campbell: On Defence Spending, Alabama, And Dolly Parton

The spending lavished on Defence projects to meet the risks that could maybe, possibly, theoretically face New Zealand in future is breath-taking, given how successive governments have been reluctant to spend even a fraction of those amounts on the nation’s actual social needs. More>>

ALSO:

Members' Bills: End Of Life Choice Bill Passes First Reading

The End of Life Choice Bill in the name of David Seymour has been sent to a select committee for consideration by 76 votes to 44. It is the third time Parliament has voted on the issue in recent decades and the first time such a Bill has made it over the first hurdle. More>>

ALSO:

State Sector: MPI Survives Defrag Of Portfolios

The Ministry for Primary Industries will not be split under the new government, but will instead serve as an overarching body for four portfolio-based entities focused on fisheries, forestry, biosecurity and food safety. More>>

ALSO:

Gordon Campbell: On Vulnerable Kids, RNZ Funding, And Poppy

The decision to remove the word ‘vulnerable’ from the Ministry for Vulnerable Children could well mark a whole shift in approach to the care of children in need... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages