In November 2012, I announced that my Office would carry out an inquiry into property investments by Delta Utility Services Limited (Delta), a council-controlled trading organisation of Dunedin City Council (the Council).
The property investments were at Luggate, near Wanaka, in mid-2008, and Jacks Point, near Queenstown, in mid-2009.
The Mayor of Dunedin asked for the inquiry. I was aware that some Dunedin ratepayers had alleged impropriety about the investments. There were also more widespread concerns that the investments had lost money and would reduce the Council's net worth.
My staff have reviewed:
- Delta's decisions to invest;
- how Delta managed the investments;
- the involvement of Delta's parent company, Dunedin City Holdings Limited; and
- the Council's actions.
This report sets out my Office's findings and conclusions.