Labour requests OAG investigation into KiwiRail
Dunedin South MP
26 November 2012 MEDIA STATEMENT
Labour requests OAG investigation into
Labour has asked the Office of the
Auditor General to investigate KiwiRail’s tendering and
procurement process for rail wagons, says Labour’s Dunedin
South MP Clare Curran.
“I am deeply concerned that
KiwiRail has made poor decisions in procuring rail wagons
that has led to the loss of over 90 jobs at Dunedin’s
Hillside workshops. The issue must be investigated so the
public can understand what has gone on.
three key areas I request that the OAG investigate.
“The Government has consistently claimed it has not
issued directions to require Kiwirail to choose the lowest
cost bidder for rail wagons, or to require Kiwirail to run
down and divest itself of core capacity at Hillside. I
don’t believe this is true.
“The second issue is
whether the tendering decision to purchase 300 wagons from
the China North Rail Company was focussed on the lowest
price, given the serious flaws that have been exposed in the
rail wagons and locomotives purchased by the Government
“The third issue is new information that
KiwiRail management tried to secure work for Hillside but
was knocked back by the KiwiRail Board.
letter follows one I sent to the Auditor General in August
asking the office to investigate the adequacy of evaluations
for the contracts entered into between KiwiRail and China
“KiwiRail’s procurement decisions
have directly led to the loss of 90 skilled jobs at Hillside
and potentially hundreds of flow-on jobs and work for the
“This issue must be investigated
thoroughly,” says Clare Curran.
© Scoop Media
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