Watercare chief executive Raveen Jaduram resigns amid Auckland's worst drought in 25 years

Monday, 17 August 2020

Raveen Jaduram was the highest paid chief executive of all the council-controlled organisations, on an annual salary of $775,000.

The head of Auckland Council's water company has stepped down as the city grapples with its worst drought this century.

The departure of Raveen Jaduram – the highest-paid chief executive in the council group – was announced by Watercare’s chairwoman Margaret Devlin.

Drone footage of the Hays Creek Dam in Hūnua that Watercare plans to recommission as part of a range of measures to help address the city's water shortages.

Jaduram will leave at the end of October as the company deals with the most serious water shortage it has faced in 25 years, and with political opposition to the level of his $775,000 salary.

In a statement released by Devlin, Jaduram said after six years in the role, it “was timely to consider new opportunities”.

Auckland Mayor Phil Goff announced mandatory water restrictions across the city earlier in the year.

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Watercare chairwoman Margaret Devlin announced Jaduram’s departure on Monday.

“With the Government’s three waters reform initiative and the Auckland Council’s review of Council-Controlled Organisations, a new chief executive will bring a fresh approach to lead Watercare through its next phase,” he said.

Jaduram noted this was an exciting and vital time across the whole infrastructure sector, and he looked forward to making a wider contribution.

Auckland Mayor Phil Goff, who has been publicly critical of some of Watercare’s role in responding to the current drought, thanked Jaduram for his contribution.

“I acknowledge Mr Jaduram’s six years as [chief executive] of Watercare and many years prior to that as a senior employee of Watercare,” he said.

Living with disabilities and a water shortage is difficult for Waitākere resident Vladimir Muzyka, who had to order many truckloads of water over the summer. (Video first published in February, 2020)

Jaduram has stepped aside from his normal chief executive duties in the past couple of months to focus on managing Auckland's drought response.

The city is dealing with unprecedented drought, with storage levels at 61.4 per cent, compared with a normal level of 87 per cent, and water use restrictions are likely to be in place for a year.

In June, Watercare was criticised by Goff for a late request for $224 million to fund the acceleration of projects to boost the city's supplies over the next year.

The need for funding came as Auckland Council was finalising its emergency budget, reshaped around a forecast $500 million revenue hit from Covid-19.

“Could we have got information earlier from Watercare, the answer is probably yes,” Goff told Stuff in July.

Jaduram's salary has become a renewed issue, following an independent review of Auckland Council's system of having five subsidiary companies, or which Watercare is one.

The review recommended the salaries of the chief executives of the subsidiaries should not exceed that of the chief executive of the council itself.

Auckland Council has just appointed a new chief executive, Jim Stabback, on a salary of $600,000.

Jaduram's was the only chief executive salary in the council group to exceed this, but could only ever have been reduced by negotiation.

Goff on Monday described his past comments on Watercare salaries as being over “a legacy issue”.

“My expectation is that the new CEO of Watercare will start on a considerably lower salary than what is paid to the outgoing CEO,” said Goff in a statement.

Chief executive salaries at Auckland’s council-controlled organisations (CCOs) have always been set by the agency’s own board of directors, and Watercare has always had the highest-paid CEO.

Jaduram’s resignation will take effect the day before the 10th anniversary of the formation of the amalgamated Auckland Council.