Cera staffers at centre of conflict of interest probe behind $250m waste plant plan
Wednesday, 1 February 2017
Two former Canterbury Earthquake Recovery Authority (Cera) staffers at the centre of a conflict of interest probe are behind a $250 million waste-to-energy plant in Westport.
Murray Cleverley, Gerard Gallagher and Simon Nikoloff stood down from their public service roles on Wednesday as the State Services Commission escalated its investigation into the trio's private dealings while they worked for Cera.
Cleverley was manager of the Greater Christchurch Investment Strategy until early 2015. Gallagher and Nikoloff transferred to Cera's successor, Otakaro Ltd, when Cera was disbanded in April last year.
Gallagher and Cleverley are also directors and shareholders of Waste Energy Ltd, formed in May, 2015, while Gallagher was still employed by Cera.
**READ MORE:
*Cera staff to be investigated over private company dealings
*Labour calls for Auditor-General to probe alleged conflicts of interest
* Cera staff running own property business on the side
* Canterbury health board chairman talking with buyers for buildings
* CDHB chairman declares possibility of 'perceived' conflict**
The company is investigating building in Westport a $250m plant that would burn rubbish from around the South Island. The plant would provide 100 jobs and boost the struggling West Coast economy.
Gallagher is the firm's chief executive and last year he went on a fact finding trip to England with Buller District Mayor Garry Howard and council economic development officer John Hill. The trip cost Buller ratepayers $6,500.
Howard said Gallagher would have to comment on the company's progress, but the council was keen to work with his company and pursue the job opportunities the project could create for the area.
Hill was an advocate for waste to energy and the council hoped to see the project come to fruition.
'At the present stage my personal view is that it's unfortunate we are casting a grey cloud over people without the investigation being completed,' he said.
Gallagher had his full confidence 'until we see otherwise'.
'We know this project has [a] real opportunity to succeed and we will continue to work with the company on that basis.'
Gallagher said comment would have to come from the Waste Energy board, but would not say who was on the board.
He is a former general manager of Enterprise Ashburton and set up a training business called the Success Academy in 2010. The company was deregistered in November 2013.
Cleverley is also involved in a separate venture with Nikoloff, the other former Cera staffer being investigated. They formed Sky Solar Holdings Ltd in 2007 and both men have been directors and shareholders of the firm since it started. It imports solar panels from China.
Nikoloff, who worked with Gallagher at Enterprise Ashburton, did not respond to questions.
Cleverley is a specialist in governance, economic development and change management.
He is a fellow of both the New Zealand Institute of Management and the New Zealand Institute of Directors, and a life member of South Canterbury Chamber of Commerce. His company Silverfin Capital is involved in property syndication.
Cleverley was also the former chief executive of the Aoraki Development Trust and became embroiled in allegations he gave substantial pay rises to two staff, one of whom was his wife, on the eve of his departure in 2009.
The Ombudsman refused to release information about the pay increases saying they brought the salaries into line with what others were paid.