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: -


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Our Weird Ways Of Funding Care For The Dying

National Party leader Judith Collins thinks the government’s traffic light system for emerging from Covid lockdowns is “confusing.” Perhaps she could be looking in the mirror because in recent weeks, National has hardly been a model of crystalline clarity. On RNZ this morning Collins was calling for the scrapping of all vaccine certificates and mandates once we hit 90% double dose vaccination. Yet in recent weeks, Chris Bishop, National’s Covid spokesperson has been indicating that vaccine certificates and employment mandates will be, and should be, part of our new Covid landscape... More>>

Covid-19: Two Cases Notified In Christchurch Last Evening

The Ministry of Health was notified last evening of two positive COVID-19 cases in Christchurch from the same household. One member of the household had recently returned to Christchurch from Auckland. The local public health unit is gathering information from the cases to identify close contacts and exposure events, including any locations of interest... More>>


Government: Considers Regulatory Safeguards For Three Waters Services
Public feedback is being sought on the regulatory safeguards required to ensure consumers and communities receive three waters services that meet their needs, Commerce and Consumer Affairs Minister, Dr David Clark announced today... More>>

Three Waters: Government To Protect Vital Public Water Services For Future Generations
Local Government Minister Nanaia Mahuta today confirmed the Government will create four publicly owned water entities to ensure every New Zealander has access to affordable, long-lasting drinking, waste and storm water infrastructure... More>>


Government: Responds To Independent Review Into WorkSafe

The Government has clear expectations that WorkSafe must action the recommendations of the independent review into the regulator to improve its management of adventure activities following the tragedy at Whakaari White Island, Workplace Relations and Safety Minister Michael Wood says... More>>

Government: First Step In Managed Isolation Changes; Expanding QFT With Pacific

The Government is starting a phased easing of border restrictions that will see the time spent in an MIQ facility halved for fully vaccinated overseas arrivals from 14 November and home isolation introduced in the first quarter of 2022 at the latest, Chris Hipkins said today... More>>





InfoPages News Channels