The Auditor-General will not look into Tauranga City Council spending further despite several requests, including from MPs.
The Office of the Auditor-General said it had received requests to inquire into spending decisions made by the council from 2021-24, when the Government-appointed commission was in charge.
Senior inquiries specialist Andrew Goddard’s August 26 letter to council chief executive Marty Grenfell said the requests had come from members of Parliament, councillors and the public.
The concerns were about the sale of the Tauranga Marine Precinct, the sale of the former elder housing village at Pitau Rd, the $306 million civic precinct Te Manawataki o Te Papa, the lease of the council’s new office 90 Devonport, the purchase of 134 Durham St and 160–176 Devonport Rd.
The Auditor-General may carry out an inquiry into any matter concerning a public entity’s use of its resources, Goddard’s letter said.
“We receive many requests for inquiries each year and choose carefully which ones to investigate.
“We do not intend to carry out further inquiry work on these matters.”
In late 2024, the office considered several requests to inquire into the Marine Precinct sale but decided not to because it was subject to High Court proceedings.
Tauranga’s marine precinct at Sulphur Point was sold for $13.98 million to a Christchurch developer. Photo / Brydie Thompson
The office said it would maintain a “watching brief” as proceedings progressed.
Tauranga MP Sam Uffindell and Act MP Cameron Luxton asked the auditor to investigate the sale because of concerns the precinct was sold for “well under” its valuation.
A last-minute injunction was filed in November to stop the sale of the precinct to Christchurch developer Sam Rofe for $13.98 million.
A midpoint of valuations was about $23m.
The injunction was heard in the High Court in February and dismissed by Justice Peter Andrew in April. The sale settled two weeks later.
Goddard’s letter said it was unlikely an inquiry into the sale would add further value.
“It would also be inappropriate for us to appear to second-guess the court’s view.”
Tauranga MP Sam Uffindell said the Marine Precinct sale was a “terrible deal” for ratepayers. Photo / Rosalie Liddle Crawford
Uffindell told Local Democracy Reporting the Auditor-General’s decision did not change anything because the sale, in his view, remained a “terrible deal”.
“Private developers profited massively at the expense of Tauranga ratepayers.
“The people of Tauranga deserve better.”
Goddard’s letter said concerns raised about the council centred on:
The office was not best placed to inquire into these concerns, the letter said.
The Pitau Rd elder housing village in Mount Maunganui was sold to developer Sanderson Group in 2022. Photo / Mead Norton
It was up to the Ombudsman to examine whether it was appropriate to exclude the public from meetings.
It was also not the Auditor-General’s role to express a view on the merits of a particular decision.
“It is also not for us to say whether the council has achieved an appropriate sale or purchase price – that is, whether any transaction is a ‘good’ or ‘bad’ deal for ratepayers.”
The Auditor-General could examine whether a public organisation followed an appropriate or agreed process in making a particular decision.
The office had “carefully reviewed” information provided by correspondents, including the council, and other publicly available information.
“Based on what we have seen, the council has explained the approach that it took to the transactions it has entered into, including the policy trade-offs it has considered in arriving at the decision to purchase, sell, or lease property.
“We have not seen evidence to substantiate the concerns raised with us about the probity of the decision-making processes.
“The fact that transactions may have led to a private benefit does not mean that decisions made by the council were improper.”
The office asked the council to consider how and how often it made more information publicly available about the process and rationale for transactions, including those the office had reviewed.
“This might help to ensure trust and confidence in decisions the council has made.”
Tauranga City Council head of commercial Alastair McNeil. Photo / Alex Cairns
Council head of commercial Alastair McNeil said the council welcomed the findings.
“We acknowledge the finding that there is no evidence to support concerns about the council’s decision-making processes.
“We are committed to publicly disclosing significant future decisions, where appropriate.”
LDR is local body journalism co-funded by RNZ and NZ On Air.
