Liability fear grows

Former Kaipara councillor Bill Guest believes he and other councillors are at risk of having liability charges laid against them under the Local Government Act for the council's huge debt.

Mr Guest, who was a councillor from 2007-10, said yesterday: "Possible charges could be laid on the unlawfully charging of rates and incompetent management which has resulted in a massive debt for the district."

The council has debts in excess of $80 million - the largest per capita council debt in the country. It also faces the problem of addressing irregularities in the collection of $17.7 million in rates.

"To mitigate any action being taken against me personally, I have lodged a submission with the Auditor General outlining my concerns and actions at the time [the rates were set]," Mr Guest said. "My record clearly shows I tried to raise these issues, even to the extent of suggesting ministerial intervention and an external organisational review. The signals were there, back then."

As the holder of the finance and regulatory portfolio, he was concerned at the lack of financial reporting and controls, described the regulatory department as being in disarray, the blowout costs of the District Plan, and the $17 million spent on consultancy fees over a three-year period, he said.

In May 2009 he was stripped of the portfolios. "Some viewed me [at the time] as a disruptive troublemaker. I believe I had the right as councillor to speak out and question any matters of concern ... and it was my responsibility to the ratepayers."

Reviews by both the Office of Auditor General and a ministerial appointed review team are under way.

Kaipara's chief executive Steve Ruru said the review by the Auditor General would determine what, if any, action would be taken.