The Queenstown Lakes District Council (QLDC) cannot follow existing procurement guidelines because the additional effort would be frustrating, says a report for a special council meeting tomorrow (Thursday February 25).

The report follows an internal council review into the procurement process used by QLDC which resulted in the council paying consultancy firm ZQN7 more than half a million dollars over a two-year period, operating against its own guidelines.

An extraordinary meeting (outside the usual timetable) was called to highlight issues with the procurement guidelines and propose an interim approach while a full review is undertaken. 

The report for the meeting, written by commercial and procurement manager Geoff Mayman, said a “literal interpretation of the guidelines may be problematic for a number of areas of general operations”.

Geoff said a “strict interpretation of the existing guidelines…” would require “additional effort” which “may be tolerable for a very short period of time, but would soon create inefficiency, a slowing pace of work and frustration, to the point of stifling an already extremely busy organisation”.

The report makes a series of recommendations which will be considered at the meeting today.

Councillors also reviewed and discussed procurement practices on February 15 and committed to seeking a further review of the report by the council’s audit, finance and risk committee.

Last week a council representative told the Wanaka App the auditor general had carried out “initial enquiries” into the matter of the ZQN7 spend.

Auditor general John Ryan is seeking information on council’s implementation of procurement guidelines. PHOTO: Supplied

The Office of the Auditor General (OAG) has confirmed it is still considering the matter: “After the matter was raised with us, we started carrying out preliminary work to better understand the situation,” an OAG spokesperson told the Wanaka App. 

“We have not commenced a formal inquiry or investigation, we are simply seeking information at this stage,” the OAG said.

The OAG process generally involves preliminary work to determine the scope of the work, after which a decision is made on whether or not to carry out an inquiry. The OAG may review files, formally interview people, and gather information from multiple sources.

Mayor Jim Boult said the council review found “misunderstandings” existed regarding the application of the procurement guidelines.

Read more: Big consultant spend after QLDC staff ‘misconstrued’ policy