1 00:00:00,080 --> 00:00:01,960 Speaker 1: We have yet another damning report into the state of 2 00:00:01,960 --> 00:00:06,359 Speaker 1: Wellington Water today spells out alleged theft by one individual, 3 00:00:06,480 --> 00:00:10,440 Speaker 1: poor value for money from contractors, systemic structure issues, lack 4 00:00:10,480 --> 00:00:13,080 Speaker 1: of oversight for spending. In fact, it says that low 5 00:00:13,119 --> 00:00:16,280 Speaker 1: and authile and rate payers have foked out three times 6 00:00:16,720 --> 00:00:20,240 Speaker 1: what they should have for pipes. Nick Leggett is share 7 00:00:20,280 --> 00:00:24,200 Speaker 1: of Wellington Water. He's with me, Hinik, you've offered to 8 00:00:24,239 --> 00:00:27,120 Speaker 1: resign apparently because of this report. Has anyone accepted that. 9 00:00:28,000 --> 00:00:30,520 Speaker 2: I haven't offered to resign. I've said I've certainly listen 10 00:00:30,640 --> 00:00:34,760 Speaker 2: to our shareholders. I mean, this is a damning report 11 00:00:34,880 --> 00:00:40,919 Speaker 2: and Wellington Water has come under criticism that I can 12 00:00:40,960 --> 00:00:45,000 Speaker 2: only say is justified and people should be appalled. What 13 00:00:45,040 --> 00:00:47,519 Speaker 2: we've tried to do is lift a lid on that. 14 00:00:47,800 --> 00:00:51,640 Speaker 2: Be honest and upfront. There wasn't the right competitive tension 15 00:00:51,680 --> 00:00:55,440 Speaker 2: to get the best value for ratepayers. The internal systems 16 00:00:55,480 --> 00:00:58,960 Speaker 2: for the organization that the financial checks, those kind of 17 00:00:59,320 --> 00:01:03,760 Speaker 2: processes appalling. And it's been a continuum since the report 18 00:01:03,840 --> 00:01:06,320 Speaker 2: last year. Really that where there was a big budget 19 00:01:06,319 --> 00:01:07,679 Speaker 2: eerror and. 20 00:01:08,000 --> 00:01:09,680 Speaker 1: Did you need a report to tell you all this? 21 00:01:09,720 --> 00:01:12,319 Speaker 1: Because it's in the Deloitte report. The summary, it says 22 00:01:12,319 --> 00:01:15,399 Speaker 1: that every employee interviewed said that they saw big holes 23 00:01:15,400 --> 00:01:15,959 Speaker 1: in the system. 24 00:01:17,080 --> 00:01:19,840 Speaker 2: That's right. And so what happened was when our new 25 00:01:19,920 --> 00:01:25,440 Speaker 2: chief executive arrived in about September last year, employees came forward. 26 00:01:25,440 --> 00:01:29,520 Speaker 2: They came forward to me. We ran a whistleblower type approach. 27 00:01:29,880 --> 00:01:34,280 Speaker 2: People came forward, some anonymously, some face to face, and 28 00:01:34,319 --> 00:01:37,080 Speaker 2: they identified different problems in the organization. 29 00:01:37,319 --> 00:01:40,000 Speaker 1: How much how much do you reckon it's cost rate 30 00:01:40,040 --> 00:01:41,440 Speaker 1: payers the whole. 31 00:01:41,520 --> 00:01:45,679 Speaker 2: We don't know that, and there would be huge money 32 00:01:46,280 --> 00:01:50,559 Speaker 2: involved in investigating that. All we can do is show 33 00:01:50,720 --> 00:01:53,240 Speaker 2: that where the system is deficient, where things have not 34 00:01:53,360 --> 00:01:56,640 Speaker 2: worked properly for years, and fix it. And the fixing right, 35 00:01:56,920 --> 00:01:58,200 Speaker 2: that fixing is the important thing. 36 00:02:00,080 --> 00:02:02,920 Speaker 1: But are you sure? I mean I read somewhere that 37 00:02:02,920 --> 00:02:04,919 Speaker 1: it was three times what you should have paid for pipes? 38 00:02:05,000 --> 00:02:07,520 Speaker 1: Is that right? And so yeah, well how much have 39 00:02:07,560 --> 00:02:10,200 Speaker 1: you spent on pipes? You know? Can we not work back? 40 00:02:10,600 --> 00:02:12,920 Speaker 1: I think, yeah, we're talking millions, aren't we? 41 00:02:13,440 --> 00:02:17,880 Speaker 2: Oh? Absolutely, yeah, Look, it's a huge cost. I couldn't 42 00:02:17,919 --> 00:02:20,640 Speaker 2: begin to put a quantity on it. 43 00:02:20,680 --> 00:02:23,240 Speaker 1: Who was the thing is? You're the chair. It's not 44 00:02:23,280 --> 00:02:26,960 Speaker 1: actually really your fault. It's the chief executive and she 45 00:02:27,160 --> 00:02:29,280 Speaker 1: left just as Tony was it. Tonya has School she 46 00:02:29,400 --> 00:02:31,119 Speaker 1: the one in charge when all this was going down. 47 00:02:31,639 --> 00:02:34,040 Speaker 2: Tonya has School was the chief executive for eighteen months 48 00:02:34,760 --> 00:02:39,040 Speaker 2: and before that there was another long standing chief executive 49 00:02:39,440 --> 00:02:42,280 Speaker 2: and the new chief executive has come in and lifted 50 00:02:42,440 --> 00:02:48,600 Speaker 2: the lid on the situation and we have obviously invested 51 00:02:48,760 --> 00:02:51,880 Speaker 2: time and effort to get things where they need to 52 00:02:51,919 --> 00:02:55,120 Speaker 2: be so rate payers can be assured that they're going 53 00:02:55,160 --> 00:02:57,880 Speaker 2: to get value for money for the rates they paid awards. 54 00:02:58,000 --> 00:03:00,720 Speaker 1: So you're you're staying in your job? What have you 55 00:03:00,760 --> 00:03:03,200 Speaker 1: said to the Mayor's Look, I'll go to the councils. 56 00:03:03,200 --> 00:03:04,480 Speaker 1: I'll go if you want me to. Is that what 57 00:03:04,480 --> 00:03:04,880 Speaker 1: you've said? 58 00:03:04,880 --> 00:03:08,400 Speaker 2: Oh yeah, I mean I think, I think, I'm I'm 59 00:03:09,080 --> 00:03:12,040 Speaker 2: I'm seasoned enough to read the signals that the thing 60 00:03:12,080 --> 00:03:14,880 Speaker 2: about Wellington Water is it's not going to exist beyond 61 00:03:15,240 --> 00:03:17,360 Speaker 2: about the middle of next year because there will be 62 00:03:17,400 --> 00:03:20,639 Speaker 2: a new water entity form assuming everything goes to you. 63 00:03:22,280 --> 00:03:26,800 Speaker 1: So this has this has been a raught basically for 64 00:03:26,480 --> 00:03:28,520 Speaker 1: the subcontractors, hasn't it. 65 00:03:28,560 --> 00:03:32,519 Speaker 2: Well? I think that this has raised questions for all 66 00:03:32,520 --> 00:03:34,200 Speaker 2: the people that have had all the companies that have 67 00:03:34,240 --> 00:03:38,320 Speaker 2: had contracting arrangements. But Ryan, I'd say this Wellington Waters 68 00:03:38,920 --> 00:03:42,119 Speaker 2: process is allowed that to happen, and what we've done 69 00:03:42,160 --> 00:03:45,440 Speaker 2: is change that. So we're getting more contestability well. 70 00:03:46,840 --> 00:03:51,560 Speaker 1: Up for the last what six months of your life. Yeah, 71 00:03:51,600 --> 00:03:54,560 Speaker 1: there'll be just be shaking. 72 00:03:56,640 --> 00:03:59,840 Speaker 2: Justifiably so. But but the key point is, I mean, 73 00:03:59,840 --> 00:04:03,280 Speaker 2: this is a company that doesn't have an asset management system, 74 00:04:03,320 --> 00:04:06,040 Speaker 2: it doesn't have a finance system, it doesn't even have 75 00:04:06,080 --> 00:04:08,560 Speaker 2: a payroll system, right, so it was never it's never 76 00:04:08,600 --> 00:04:11,520 Speaker 2: been invested in. What we're trying to do is improve 77 00:04:11,560 --> 00:04:13,640 Speaker 2: it and build it up so when a new water 78 00:04:13,840 --> 00:04:16,480 Speaker 2: entity takes over that actually owns the assets and is 79 00:04:16,520 --> 00:04:19,119 Speaker 2: in control of its own destiny, it will be able 80 00:04:19,200 --> 00:04:22,400 Speaker 2: to do as well as it possibly can from day one. 81 00:04:22,800 --> 00:04:25,840 Speaker 2: We can't just sit around and drink tea. We've taken 82 00:04:25,920 --> 00:04:28,480 Speaker 2: action because that's what actually residents expect. 83 00:04:28,560 --> 00:04:30,400 Speaker 1: It sounds like there's been a lot of drinking tea. Nick, 84 00:04:30,440 --> 00:04:32,760 Speaker 1: Thank you, Nick. Let get tear of the board at 85 00:04:32,800 --> 00:04:36,839 Speaker 1: Wellington Water. For more from Heather Duplessy Allen Drive listen 86 00:04:36,920 --> 00:04:39,960 Speaker 1: live to news talks. It'd be from four pm weekdays 87 00:04:40,080 --> 00:04:42,240 Speaker 1: or follow the podcast on iHeartRadio