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Māori Council takes post-quake rebuild concerns to Auditor General

Sunday, 26 January 2020

Kaikōura locals are ready for battle as they feel ongoing road works are spoiling the 'raw beauty' of the once-rugged coastline.

The Kaikōura road and rail rebuild has $80 million worth of construction to go, and the Auditor General has been called on to ensure there has been 'proper financial oversight' of the project. 

The Northern Canterbury Transport Infrastructure Recovery Project, NCTIR, said last week there were 76 'essential works' left for the rebuild, including road realignments at Half Moon Bay and Okiwi Bay and safety stopping areas north and south of Kaikōura.

They had a full workload planned through to June, when work would begin to wind down to completion in late Spring 2020.

The New Zealand Māori Council wrote to the Auditor General in November, calling for them to investigate the use of Crown funds in the rebuild.

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A new lay-by at Ohau Point, north of Kaikōura.
A new lay-by at Ohau Point, north of Kaikōura.

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It also raised concerns over the use of emergency legislation to obtain building consents and procurement provisions.

State Highway 1 has come a long way since pictured in 2017. (File photo).
State Highway 1 has come a long way since pictured in 2017. (File photo).

This comes as protesters threaten to occupy the Kaikōura coast to stop it becoming 'sterilised', and a call from the Māori Council for Minister for Transport Phil Twyford to investigate the use of emergency legislation. 

Māori Council executive director Matthew Tukaki believed there had been 'construction creep' in the project.

The Office of the Auditor General responded to the letter, asking for more information on the concerns raised.

Protect Our Unique Kaikōura Coast members, from left, Darlene Morgan and Sharon Rayner, have staked out their message.
Protect Our Unique Kaikōura Coast members, from left, Darlene Morgan and Sharon Rayner, have staked out their message.

NCTIR was set up to restore the road and rail networks following the 7.8-magnitude earthquake which hit Kaikōura in November 2016. 

The recovery alliance, which includes the NZ Transport Agency, KiwiRail, and various infrastructure companies, were charged with leading the recovery using $1.25 billion in Crown funds.

Community group Protect Our Unique Kaikōura Coast say excessive use of guard rails has
Community group Protect Our Unique Kaikōura Coast say excessive use of guard rails has 'sterilised' the coastline.

Work to rebuild road and rail was expected to wrap up in late 2019, but had been postponed to late 2020

'How much of this is just about getting every dime and cent that they believe they are entitled to, even though the work is no longer needed?' Tukaki said. 

He called for the Auditor General to investigate in November. In response, Miranda Biggins from the Office of the Auditor General, said they appreciated the 'potential seriousness' of their concerns. 

The embankment process at Waipapa Bay pictured in 2018.
The embankment process at Waipapa Bay pictured in 2018.

In regards to concerns about 'proper financial oversight', Biggins said an independent organisation was contracted to provide independent monthly assurance reports which included an assessment of the previous month's claims and financial performance.These reports were made available to the project's Oversight Steering Group. 

The project had also been subject to four Treasury Gateway Reviews and some internal audits. 

She asked Tukaki to provide specific details, to understand whether the existing checks would have picked up his concerns. 

'This information will help us make a more informed decision about whether these concerns are something that we should inquire into further,' Biggins said. Tukaki asked the Auditor General whether the procurement provisions were fit for purpose and what checks and balances there were for the review and revision of those projects.

'To help us respond, we need to more fully understand your concerns,' she said. 

'We would welcome any information that you may have to support us in making a decision.'

Biggins said they could not provide a legal ruling on whether the emergency legislation had been correctly applied. 

'That is the role of the courts,' she said. 

They also did not have a mandate to audit the private organisations involved in the project. She suggested Tukaki contact the Office of the Ombudsman.

Tukaki planned to provide the Auditor General with the information requested, and alert the Office of the Ombudsman.